Taking a loan secured by an apartment is an opportunity to buy a new home, pay for tuition or start your own business without looking for the best app to get cash advance. Such a loan is issued on favorable terms at a low-interest rate, and registration takes only one day. The benefits of a mortgage loan are many: first, you get up to 80% of the market value of the apartment on hand. Secondly, the decision on the loan is instantaneous – the application is considered within 24 hours, and more than 80% of applicants receive a positive result.
This loan has a low-interest rate, convenient repayment schedule, and long loan term, it is available to anyone over 18 years of age. There is a minimum package of documents – and a certificate of income is not required. Credit history is not important either – overdue loans are not a reason to refuse.
What are the real alternatives to bank loans? Anyone who has taken advantage of the offer of a specialized financial organization can get a mortgage loan.
Table of Contents
- Features of a Mortgage Loan
- Mortgage Loan to Unemployed
- Where to Get a Mortgage Loan without a Certificate of Income
- Top-3 “Myths” About Mortgage Lending
Features of a Mortgage Loan
A mortgage loan secured by an apartment is issued on the security of property that is in normal condition and has no encumbrances. The loan amount depends on the condition of the house. Anyone over the age of 18 can get a loan, and no one needs to be evicted from the apartment: the owner remains the same, the residence permit is not canceled, and you can continue to live there or rent.
Even if you do not have your apartment, the lender allows you to make a loan for the property of a relative or friend. The main condition here is that you have to get official permission that the owner agrees. And the most interesting thing: the loan obligations can be shared with relatives.
The money is instantly transferred to the borrower’s account. He undertakes to make a monthly payment, and if there is a delay, the loan agreement can be extended, thus reducing the financial burden. It is possible to repay the debt ahead of time — without any commissions. You can use terminals, Internet banking, or the bank’s cash desk for payment.
A loan secured by an apartment is a profitable solution to financial issues. Students, retirees, and even the temporarily unemployed can take advantage of this solution. The apartment becomes a valuable asset: it can be rented out, and credit money can be used for business development, buying a new home, or a car. Lending conditions are simple and clear and do not require many checks — this is a really good solution!
Mortgage Loan to Unemployed
One of the options for getting money for the unemployed can be a cash loan or a credit card. But if the opportunity to get a loan without a certificate of income is always present, the chances of getting a loan for the unemployed will be much lower. Banks need to understand that you have a source of (preferably stable) income that will allow you to repay the loan.
Unemployed does not mean “no income”. First, you can work and earn income informally, which is often the case in our reality. In this case, in some banking institutions, you can count on a loan without a certificate of income.
Secondly, it can be an alternative income: from your own business, creativity, contributions, real estate, transport, or equipment for rent.
The third option that weights obtaining a loan for the unemployed is the so-called “legal income”. He refers to the following sources:
- Old-age pension;
- Disability pension;
- Military pension;
- Other social benefits
Banks are also ready to give a loan to such a client. All you have to do is show the documents that prove your income. Therefore, such a document can serve not only as a certificate of income.
Where to Get a Mortgage Loan without a Certificate of Income
Having prepared the relevant documents, you can try to get a loan from one or more banks. However, you should pay attention to the level of reputation of this financial institution, so a loan from unreliable banks also carries risks. For example, if the bank goes bankrupt, your loan may be transferred” to a collection company, which in case of delay will annoy you much more.
Top-3 “Myths” About Mortgage Lending
Even though a mortgage loan secured by real estate is almost the only way out of a difficult financial situation, not everyone decides to apply for it. This is due to several beliefs that for many sometimes become decisive. The most common “myths” about mortgage lending include:
1. A secured loan often means the loss of property
This view is fundamentally wrong. Even if a person loses the ability to repay the loan, it does not mean that he will lose his home. Banks go to court only in rare cases, when it is impossible to solve the problem in any other way. We must remember that no one needs “extra noise”. For any creditor, litigation can be a severe blow to reputation. That is why most financial institutions are limited to penalties;
2. A real estate loan automatically takes away the right to use the property
This is not true. A loan secured by real estate makes it impossible to sell or donate housing, but not its use. Owners can continue to live in the apartment or rent it out;
3. All loans secured by target, ie, will have to report to the lender
Such loans are issued only by some banks. In all other cases, customers have the right to make any expenses and buy what they want.
Many people who want to get a mortgage loan for real estate are afraid of the need to spend a lot of time on registration. In addition, the borrower must have an impeccable credit history and a certificate of income. All these are mandatory conditions, but only when it comes to bank lending.