How to get a loan secured by real estate

To make a loan for an impressive amount, it is necessary to provide a reliable guarantee of its return, and the real estate is considered the best guarantee of the security of such a loan. What you need to know about lending on the security of real estate?

A dozen years ago, loans were provided without the collateral of real estate, but today it is impossible to get a significant amount without such guarantees. Many borrowers resort to this convenient way to make money loan to buy housing, cars, development of their own business. If the borrower cannot return a loan, the bank sells the laid real estate to repay the loan, given the interest.

The loan secured by the property is beneficial to the bank, because it is insured against financial losses. Land, house, apartment, cottage or commercial real estate object, which are the property of the borrower can be used as collateral. If the property does not belong to the borrower, and his husband or wife, then it is necessary to arrange a notarized agreement of the husband / wife on the transfer of real estate.

After the real estate object is rated by a professional-appraiser company, which is used by the Bank's confidence, you can calculate approximately the amount of the loan. The maximum loan amount can be 80-90% of the collateral value of real estate.

The appraiser company defines the market value of real estate, in some cases the liquidation cost of the property of the deposit is calculated (this is the price for which it is possible to quickly realize real estate, it differs from the market value by 15-30%). Many factors are influenced for estimating the cost of real estate: the area, location, floors of the house, the degree of its readiness or technical condition, the infrastructure of the district and other characteristics, also takes into account the state of the real estate market at the evaluation date.

To assess the object of real estate, you must provide copies of a technical passport, documents for land plot (if necessary), the certificate of rights to the site and the house, as well as the Personal Passport, which ordered property assessment.

This method of lending is beneficial to both the borrower and the bank. If the borrower plans to acquire a new real estate, interest rates in this case are an order of magnitude lower than with a mortgage loan. Credit can be issued for any needs - the expansion of the business, the purchase of cars, and is given such a loan in a significant amount and for a sufficiently long time.