PROCEDURE FOR PURCHASING A HOUSE WITH A BANK LOAN

Buying real estate is an important decision and whether it is the first property or the next for investment purposes; the first thing you need to think about is how you will finance it. In the absence of personal funds, we usually seek help from a bank.

The first thing you need to do before you start looking for the desired property is to choose a bank. After choosing a bank, there is a survey of your income, proven by an official note from an accountant or bank statements, for a period of 6 months. If you meet the criteria for income and age, the bank gives you prior approval for a certain amount. Preliminary approval has a period of 3 months, during which you are given the opportunity to find the property you want. If you fail to like a home during this period, you must re-apply by proof of income.

Bank mortgages are of two types: legal and contractual:

In the case of a legal mortgage, the amount that is granted is used for additional payment or payment of the sale price.

With a contractual mortgage, a little more flexibility is provided; here the loan can be divided into two parts: the amount to buy the home and the amount to repair.

After the preliminary approval by the bank for a specific amount and the selection of the desired property, the following actions are taken:

- Reserving of the property

- Market valuation of the property by a licensed appraiser - the bank provides a list of appraisers it works with, the opinion is issued within 3 days. Based on the market assessment, the bank lends between 80% and 95% depending on the construction.

- Collection and preparation of all necessary documents for the bank by the borrower and the seller - ownership documents identifying the seller, property ownership document, current certificate of absence of encumbrances, current certificates of lack of tax liabilities and marital status of both parties, certificate for tax assessment of the real estate - by the municipality of the location of the property, sketch of the property - by the technical service of the municipality by the Service of Geodesy, Cartography and Cadastre.

- Signing a preliminary contract for the purchase of the selected property.

- Confession of the transaction before a notary.

- Disbursement of the loan. The utilization takes place after providing the bank with an up-to-date certificate for lack of encumbrances, which shows that the borrower is the last owner of the property and that he has established a first mortgage in favour of the bank.

- Entering into possession of the property