Many people dream to have their own housing. Why? Own house or flat provides security, warmth and comfort, and feeling of reliability, which rented housing would not ensure.
Unfortunately, just few people inherit such “attribute” of stability, and even least people can buy housing by cash and immediately.
Additionally, money has purchase power. Only changing of money purchase power and dependence of their cost on time make difficult to do shopping, namely to buy something big we save money for it today and tomorrow. Especially, when prices on real estate are growing all time and wages are still the same. So, it is problematic to save money.
Solution to address such situation exists – it is a mortgage credit. Many people, probably, are familiar with this term. To what extent it is beneficial to apply for mortgage credit in the bank or company? What are risks associated with credit on housing and what are advantages?
Rent vs interest by credit?
It is quite difficult to take mortgage in the bank. Whole list of documents will be required, and much patience and time. The bank often rejects mortgage. Poor credit history, conviction and lack of income, which you could confirm somehow, are main reasons of rejection.
We suppose you have good credit history, stable income, documents are OK and you decided to buy own housing in credit. Your income allows for making monthly payments on credit from 0 to 0 without serious damage for the family budget. It is ideal borrower for the bank, and you meet him/her once among 100 clients (if not rarely).
Is it worth to take mortgage if you do not have house, but you handle renting payment very well in amount of 0-400, but not more? Annual payments on credit will be same amount if you take one-room apartment in new house (from developer or investor – it must be the legal entity). It is the most beneficial option of the mortgage programme.
It is unnecessary to take mortgage, if serious changes are envisaged in your life, and if income source is unreliable.
Before you apply for mortgage credit, it is worth to consult with specialist. It is better to contact the bank officer working in the mortgage department. Do not limit yourself with consultation in one bank only. It is better to visit several departments of the banks. Only then you will know whether the mortgage is suitable for you and you get it. It is better to know rather to be sorry for lost opportunity.
Positive features…
As you know, prices on real estate are growing every year. It is unrealistic to save money to buy housing, if, certainly, size of your salary does not exceed an average salary in 3-4 times. Taking mortgage, you can purchase apartment immediately, not postponing, by current price.
Additionally, there is social deduction, which guarantees repayment of certain amount of money spent for mortgage credit. You can get explanation of this question at tax service office in the district.
…and negative features
If you buy apartment with mortgage, you become the owner of housing with some restrictions. You do not have right to sell, exchange or present apartment until you pay to the bank whole amount. It is logical, you processed mortgage, and the bank credited you money. As in any other important business, decision will be left with you.