The loan secured by real estate owned by the borrower.

Loans secured by real estate owned by the borrower becomes increasingly important type of mortgage in our time. In fact, we can talk about that in a crisis loan secured by real estate is the locomotive that pulls in the lion's share of credit.

The loan secured by real estate owned by the borrower or the mortgagor of interest to both parties today credit relations. Banks (or other lenders) in this scheme involves, above all, the most liquid security, which in the present crisis is certainly a key factor. It is a loan secured by real estate today provides the most significant guarantees of repayment.

In this regard, the banks in an effort to more stable accommodation available credit, borrowers are willing to offer the most favorable conditions for this type of lending. This applies, as interest rates and loan terms and conditions for granting loans. In particular, many banks have agreed to issue a loan secured by real estate without the condition of proper use of credit, as many banks are willing to lend under the scheme, without documenting the borrower's income.

In addition, the loan is often secured by real estate shall be issued with preferential conditions for the down payment. Collateral for the loan can serve almost any property owned by the borrower or the mortgagor. Naturally, all these factors are attractive in this type of mortgage for the borrower. The only downside for the borrower in this scheme is that the size of the loan amount is limited to the peer review of the proposed mortgage.

The size of funds provided by Russian banks on a "loan secured by real estate" now fluctuates, usually between 50-80 percent of the appraised value of the property. At the same time provide a smaller amount of credit banks, which do not require documentation of the borrower's income, thereby limiting their financial risk. With regard to loan terms, this scheme is also quite attractive for the borrower because it is one of the few opportunities to date to obtain a sufficiently large loan for a period of 25-30 years. However, many borrowers now prefer to get a loan secured by real estate for a period of 5-10 years, due to more favorable interest rates.

To obtain a loan secured by real estate should be given to the bank in the first place, the act of an expert assessment of the property. This document is the basis for determining the possible amount of bank credit and other credit terms. In addition, provided proof of ownership of borrower or depositor (if it appears a third party) on the property. Without fail, the banks require a life insurance and disability of the borrower, as well as insurance against the risks of property damage or death.

Mortgage loans may be granted in some cases. First of all, this applies to cases where the apartment is located in a house that is in disrepair or be demolished. Also, a loan secured by real estate is not issued by banks and in those cases where the headquarters are not designed properly redevelopment. The important point for the bank is that the rights of minors in mortgage lending. In this regard, the loan secured by real estate shall not be issued if the apartment is registered with a minor, or the privatization of housing have been infringed upon the rights of minors.