How much time do you need to complete a mortgage?

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Depending on the type of real estate and the complexity of the transaction, the registration of a mortgage can take from one week to several months.

Let’s take a look:

Before you start applying for a mortgage loan, you need to carefully weigh your financial capabilities, namely the ratio of your future income and expenses, and determine how much of the initial loan payment you can pay to the lender. It is important to identify for yourself the main parameters of the loan: currency, amount, term, where the apartment will be purchased – in the primary or secondary housing market.

The next step is to choose a mortgage program and a lender, be they a bank or broker. To do this, you can use the services of a mortgage broker or specialized Internet sites that allow you to evaluate and compare lender offers.

Next, you need to fill out a questionnaire and submit to the financial institution all the required documents for passing the check for a mortgage loan. Considering the application can take from a week to one and a half months in terms of time.

After reviewing the submitted documents, if the lender has decided to issue a mortgage loan, you can start looking for a suitable housing option. Keep in mind, as a rule, banks set aside three months for this – the term of the loan decision.

When choosing a property, it is imperative to take into account the requirements of the lender. For example, a financial institution will not issue a loan for the purchase of an apartment in a house that is being demolished or if an unlawful redevelopment has been carried out in the apartment.

The ideal option is a vacant apartment in a relatively new building.

Also, if housing is to be purchased on the secondary market, you need to make sure that the seller agrees to sell it through a mortgage. The selected property must be appraised and approved by the lender for the collateral. At this stage, the lender finally determines the loan amount, in the calculation of which the apartment’s appraised value will be taken into account; the amount specified in the sales contract; initial loan installment.

Next, you need to collect and transfer to your lender all the necessary documents for the purchased housing. This package, for example, will include documents confirming the seller’s ownership of the residential premises, a certificate of state registration of rights, a certificate of the absence of encumbrances of rights to the real estate object, certificates, and other documents.

After all these steps, a loan agreement is signed between the financial institution and the borrower, and a mortgage transaction is drawn up.

Written by Bader Albader, market researcher.