The processing of any loan is a bureaucracy that reaches an incredible scale when working with banks in the mortgage profile. Different certificates, photocopies, questionnaires are required - which is not the case for Russian bankers. But we must understand that all the formalities related to the design of housing loans are necessary, and be prepared for their systematic overcoming.
What documents are needed for a mortgage being drawn up in Russian banks is a very topical issue. Today we will try to draw up a plan of action, which can be guided in overcoming the formalities characteristic of the banking system.
Two stages of workflow
The turnover of papers related to obtaining a loan to buy a home or house can be divided into two stages. The first is when the borrower applies for a loan. The second is when, having received a positive decision, he draws out an apartment or a house (makes calculations with the seller, registers real estate, etc.).
So, the first stage.
Mortgage on two documents in the Security Council of the Russian Federation?
For a start, a little sensation. In the spring of 2014, the mortgage lending market was surprised by the news: Sberbank extremely simplified the issuance of loans for the purchase of housing. Now you need only two documents to get a mortgage loan - one of them is a passport, the other is some other legal ID (rights, military ID, etc.).
This offer is relevant not only for customers who have had experience in obtaining loans with Sberbank, but also for completely new borrowers.
The new conditions work not only in relation to the two basic loan products of the Russian Federation Security Council on mortgages - the program for the purchase of finished housing and its counterpart, under which you can acquire real estate under construction, but also for other loan solutions.
Apart from this innovation, Sberbank has simplified the requirements for documents for those borrowers who have payroll accounts in this financial institution. Such clients can apply for a mortgage, presenting only a passport (you will also need to fill out a form in the bank’s office itself). Other documents for obtaining a mortgage are not needed.
However, in order to exercise the right to apply for a passport and second identity card, the client must choose a loan that meets a number of criteria:
- payment term: not more than 30 years;
- down payment: 40% (in the regions where the South-West branch is located - 30%).
The management of Sberbank called this proposal revolutionary. According to the managers of the Security Council of the Russian Federation, clients can, by showing credit specialists documents that they most often carry with them, get an apartment in a short time. Formalities are minimized. Borrowers no longer need to think about what documents to obtain a mortgage should be collected.
Standard package of documents for Sberbank
What to do to borrowers who need a loan that does not meet the above criteria? What documents are needed for a mortgage, implying the issuance of a loan on terms with lower requirements on the size of the down payment? What is the standard package of papers for Sberbank?
- First, you will need a basic Russian identity document of a citizen - a passport.
- Secondly, a photocopy of the borrower's work record will be required in order to confirm employment and the availability of permanent income.
- Thirdly, you need to provide a certificate 2-NDFL (or a document drawn up in the form of the bank). With these papers, the bank analyzes the actual income of the borrower.
If the borrower is an individual entrepreneur, then he will need to provide a copy of the tax return to Sberbank. The document must bear the stamp of the Federal Tax Service confirming that the original has been submitted to this department.
These are the documents for the mortgage in Sberbank. Of course, this list is not exhaustive. Depending on the policy of a specific structural unit of the Security Council of the Russian Federation, it may be supplemented with other papers.
Documents for applying for a mortgage at VTB24
One of the main competitors of the Security Council of the Russian Federation on the Russian mortgage market is VTB24 Bank. To get a loan in this financial institution, you will need to provide almost identical documents for registration of a mortgage.
- help 2-NDFL;
- copy of employment record.
VTB24 also has its own form of income verification. It may be an alternative to the 2-NDFL certificate.
We see the example of the requirements of VTB - the documents for mortgages to different Russian banks should be generally presented the same.
Do gray and unearned incomes matter?
Many Russians receive a "gray" salary (in an envelope). Banks, experts say, are quite normal with this, and the Security Council of the Russian Federation is no exception. "Gray" income can not replace those that are confirmed by the certificate 2-NDFL, but they are usually taken into account. There is a version that the very letterheads from banks were created just so that the actual income of a citizen (which may be higher than the figures specified in 2-NDFL) is prescribed in them.
The general rule for Russian credit and financial institutions is to issue a loan only if the monthly amount of payments on it (as well as other existing debt obligations) does not exceed 40% of the client’s income. In the past few years, however, many banks have liberalized this formula by issuing loans, even if the borrower gives about 70-80% of his income to pay liabilities.
The policy of banks as to whether or not to include unearned and “gray” incomes in the formula for calculating the solvency of a borrower varies greatly. But letting the financial institution know that the borrower's cash receipts are formed not only at the expense of salary will not be superfluous.
To give a credit report statement?
Some experts are inclined to give recommendations to borrowers, which is so far very new for most Russians. The idea is to send a printout from the credit bureaus to the bank along with the main package of documents on the mortgage. This is justified from several points of view.
First, the client emphasizes his openness to the bank, his willingness to play fair play. Secondly, the presence of this statement from the credit bureau will speed up the process of making a decision on a loan by bank specialists. Thirdly, a unified information system that would correctly display the credit histories of Russians, as some experts say, has not yet been created. And therefore, the information that the bank asks in its sources may be incorrect in relation to a particular client. In this case, an extract from the credit bureau provided by the borrower will help the bank to avoid mistakes in its work.
What documents are needed for a mortgage, if the client has unearned income (for example, the proceeds from the rental of other property for rent)? Any paper that confirms the fact that a citizen has received money will be suitable. For example, it could be an apartment rental agreement, where the amount of the monthly payment for housing is registered, and with it a bank account statement confirming that the tenant pays for everything properly.
Now we come to the second stage - when a positive decision is made. Documents related to this stage of the process for a mortgage - in Sberbank, in VTB24 and any other financial institution - will be the same.
Find an apartment on time
The main task of the client after the bank approved the application for a mortgage is to find a suitable apartment within the time allowed by the rules of the credit institution. As a rule, it is 2-3 months. In the event that the client does not meet this period, the bank may decide to reassess the borrower's solvency.
Which apartment will the bank approve?
It is not enough to find an apartment that will cause the subjective sympathy of only one borrower. The property must be approved by the bank. This is quite logical: a credit institution wants liquid assets to be pledged. Typical requirements for housing, mortgage, such:
- there should be central heating, water supply;
- building material - brick, concrete.
The bank will require papers confirming the condition of the dwelling and containing other important information. Required documents for a mortgage can be:
- evaluation report;
- house plan;
- copy of the current certificate of ownership.
Having received all these documents for an apartment for a mortgage, the bank decides whether or not to approve the borrower's choice. The period during which the financial institution usually thinks is 2-3 days. Sometimes a week.
Bank approved. What's next?
If the bank said “yes”, then the client can proceed to the next phase of paper handling. The main actions at this stage, fortunately for the borrower, are conducted by employees of a financial institution. They prepare the contract for the transaction, carry out all the necessary related work on the preparation of calculations and make other necessary documents for registration of the mortgage.
On the client side, you will need to provide the bank with the following basic papers:
- contract of sale of housing;
- insurance policy.
After the calculations, there is still another stage of work with documents - the registration of the property in the property.
As soon as the client receives the loan, the main type of paper that is relevant to the bank will be a receipt for timely monthly payment of the mortgage. Of course, it is not necessary to show the bank every time, but it is recommended to keep it in a safe place.
Having learned what documents are needed for a mortgage, we saw that the borrower would have to work hard collecting them. But these are today's realities.
The correctness of the documents - the key to success
It is extremely important that the documents submitted to the banks in the framework of mortgage processing were correct. The security services work very effectively in the largest financial and credit institutions in Russia. Their task is to identify incorrect information specified in the documents on the mortgage. If the security service considers that the person has decided to mislead the bank, then those professionals who make a credit decision will most likely be advised to refuse to issue a loan to an unreliable client.