Many doubts arise when we are faced with the acquisition of a property, the main one being how real estate credit works, mainly because this theme is so complex. In today’s article we clarify for you how this type of credit works.
How does real estate credit work?
When people are unable to buy a property with their own resources, they need to use the credit offered by banks, paying the seller in cash and paying the buyer in installments. Therefore, the buyer undertakes to pay this debt through a contract and other bureaucracies. The property cannot be negotiated as long as there is a debt with the bank.
What are the conditions that exist to finance a property?
Many banks finance real estate, however, it is worth mentioning that surveys are always welcome so that the conditions of each of them are very clear, such as: interest rates, duration of the contract and the percentage referring to the value of the property, which may be financed. Once this step is resolved, you can search for the bank of your choice and start the credit release phase.
What are the documentation required to release the mortgage?
In principle, the required documents are:
- Birth or marriage certificate;
- Proof of income – proving that the payment of the installments will not exceed 30% of your income;
- Couple’s income tax return – will be requested, depending on the situation.
After the delivery of the documents, a cadastral analysis will be made, for approval or not of the requested credit. Once everything is agreed, on the part of both the buyer and the seller, a contract is drawn up that both parties sign, assuming the commitment in question. It must be registered with a notary and taken to the bank branch, after this process the credit will be released.
What should I do after the settlement of the property?
After settling the property with the construction company, immediately request the removal of the property from the mortgage, in order to issue the Certificate of Royal Burden – protection document, which certifies that the buyer is in debt.
What measures will be taken if the buyer fails to pay the mortgage?
If this fact occurs, a lawsuit will be the departure for the bank to seek its rights, in order to keep the property, which will go to auction. Legal costs will be deducted from the amount received and the rest will be returned to the consumer.
Now that you are aware of the documentation required to acquire the mortgage, do you feel more secure in making the purchase? Like our Facebook page and stay on top of other articles and news on this subject