How to take a loan in a foreign bank

Having decided to purchase real estate abroad, you will most likely have to use lending to a foreign bank. Firstly, Russian banks may be corny to you, learning about the reason why you need money. Secondly, interest rates in Russia and abroad do not differ significantly in favor of domestic organizations, so it makes no sense to overpay. The procedure for obtaining a loan is similar to the usual one, so it is worth trying to try luck.

It is more difficult to get a loan in a foreign bank than in Russian, since lending to foreigners is always associated with risks. Nevertheless, this is possible - either for those citizens who live abroad, or those in whose region there is a branch of a foreign bank. Keep in mind that if you are going to spend money on the purchase of real estate, then the bank should be the same country where you looked at your house or apartment.

The easiest way to apply to a special organization, which is both a realtor and an intermediary between a client and banks, when receiving a loan. Typically, such real estate agencies are already cooperating with several foreign banks, and it is precisely those countries whose real estate they sell. Thus, you will reduce the search for information, selection of options, collection of documents to a minimum.

Collect and analyze information about the agency and its services. Some of these companies only provide services for providing information and collecting documents. But at the same time, your application will be considered on a common basis and you will have no guarantee in obtaining a loan. Also, keep in mind that you can purchase far from any real estate, often loans provide only for those objects that this agency was engaged in the financing of it and for its guarantee.

You can also contact directly to the bank of the country in which you intend to buy real estate. Mortgage lending to foreign citizens is most common. Collect a package of documents - income certificates, passport, credit history statement, data on the proposed purchase. The process of analyzing information and making a decision on your application is practically no different from what domestic banks are conducted. The only difference is that you will receive money in foreign currency.

In the event of a positive decision, the bank will conclude a credit or mortgage agreement with you with standard rates for foreigners. Then you can get money and start the purchase. You will extinguish the loan in the same currency that was provided to you under the contract.

Many domestic banks themselves are lended to foreign organizations for the further provision of loans to Russian citizens, but significantly increase rates. So if you do not want to overpay for mediation, you can try to take a loan directly in a foreign bank.