In the United States settlement of housing problem with [spin]a help of a mortgage credit has become the standard. The share of mortgages is more than 90% of all deals associated with the purchase of housing.

What loans can be? Credits are divided into two kinds: consumer and purpose.

Consumer loan.

Consumer loan is issued for a short period and is limited in the amount, i.e., having even very high wages, you cannot get credit over a certain sum. But you are able to use such a loan for anything while you do not put up security.

Target loan.

Target loan has an accurate definition of objectives, which can be applied for and the bank will control it. Mortgage credit – is a target loan, which is issued for the buying real estate and on collateral of this property.

What is a mortgage?

Mortgage – is a system of long-term loans given for purchase of accommodation. The main advantage of this method is that the buyer has the opportunity to make an initial fee, which is typically 10-30% of the purchase price and begin living in a new place. The residuary sum will be paid out within 10-20 years. A new apartment will be bail for the bank.

Benefits of mortgage credit.

• No need to wait the required amount of savings for purchase of housing.

• With a steady increase in property prices it is more favorable to purchase an apartment on tick than to save money for it for a few years.

• Mortgage gives you opportunity to purchase accommodation of higher quality than you could afford, using only your savings.

Generally, the mortgage scheme is as follows:

• The creditor (e.g. bank) issues a credit on the purchase of real estate to the recipient of the loan;

• The mutuary buys real property for account of the loan;

• This real property is issued as collateral for loan;

• Real estate acquired by the borrower is left at the recipient of the loan in his possession and use with definite restrictions.

Documentation necessary for acquiring the loan:

- Filled application form;

- Civilian passport and the copy of passport of the wife / husband (all pages with information);

- Marriage certificate, birth certificate;

- ID of tax payer of the borrower and wife / husband of the recipient of the loan;

- Work certificate, certified by the bookkeeping, which confirms the job of the mutuary (wife / husband) and payroll and withholding taxes for the last 6 months;

- Documents confirming the other revenue of the mutuary.

The process of obtaining the credit for the purchased real estate:

- The recipient of the loan goes to the bank to get the preliminary aggreement of the bank to issue the necessary credit amount.

- The mutuary collects all necessary documents.

- The bank gives a preliminary opinion about the issue of the required credit amount to the prospective buyer.

- It is selected the apartment and the down payment is made.

- It is gathered all needed documents and information required for obtaining the loan.

- Bank’s Credit Committee makes the ultimate decision about issuance of the loan (2-7 days).

- The sales contract is signed.

- An insurance policy is drawn.

- The state registration of the deal.

It is the basic stages of credit registration.

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