Welcome! At first glance, a mortgage is a rather complicated process. In this post, we will tell you about the stages of applying for a mortgage so that you have a clear picture of the entire transaction. Step-by-step instructions for buying an apartment with a mortgage will help you understand what needs to be done at each stage and what you need to pay special attention to.

So, a mortgage from scratch. Let's start looking into this issue.

Recently, more and more Russians are deciding to purchase a home using a mortgage loan. This scheme has its advantages: you do not need to borrow money from family and friends, you immediately register ownership of the apartment, and you can pay off the loan in accordance with your needs.

Unlike a consumer loan, where the collateral is a guarantee from an individual or is completely absent, in mortgage lending the collateral is the real estate that the bank client buys. This means that an encumbrance is placed on the apartment (without the consent of the bank - the creditor it will be impossible to sell, donate, re-register square meters), but you can live in it, make repairs, etc. Once the obligations are repaid, the encumbrance is removed.

Since in most cases an individual does not have enough own funds, mortgage loans are characterized by a significant loan amount (from 300,000 rubles to several million) and a long loan term (up to 30 years).

When applying for a mortgage loan, you can choose a debt repayment scheme: annuity payments or differentiated payments. In the first case, payments are always the same size, interest is distributed over the entire loan period. With differentiated payments, the amounts decrease: at first, the contributions are maximum, then they gradually decrease, and interest is charged on the balance. Which type of payment is more profitable? With differentiated payments, especially with a maximum term, the amount of overpayment will be less, but the income of the borrower (or family) should be higher.

You can learn more about housing costs from our previous post.

Let's begin to understand how a mortgage is issued step by step.

Step-by-step instruction

In general, we can highlight the main stages of a mortgage transaction:

• searching for a lender (determining the amount and conditions for issuing funds, approving the application),
• selection of housing options, approval of the application at the bank,
• signing a loan agreement and a purchase and sale agreement,
• registration of the transaction, registration of housing ownership.

Applying for a mortgage is a responsible matter. If knowledge and time are not enough to independently analyze the mortgage lending market, you can use the services. For a certain amount, a specialist will select the most profitable option depending on your capabilities and wishes.

If your budget is already limited, you should independently consider the banks’ offers and choose a suitable offer. By visiting bank branches or official websites of companies, you will familiarize yourself with the current lending conditions and be able to choose profitable ones.

Use our “ ” service to quickly find a profitable offer on the market.

When trying to get a mortgage, the procedure is as follows:

• decide on the loan object (an apartment in a new building, on the secondary market, a room, a share, an individual house, a plot of land, a townhouse, etc.),
• find out if the bank has special offers (for young families, state support, etc.),
• determine the value of the property: calculate the amount of the down payment and loan,
• request your credit history information from the credit bureau,
• Check with the bank the requirements for borrowers regarding marital status, income, etc.
• decide on the loan term and type of payments depending on solvency.

You should answer each question step by step to avoid mistakes and unexpected expenses.

Selecting special programs in the bank

• military mortgage (the state transfers funds to the individual account of a serviceman to accumulate a down payment, and when applying for a loan, pays the debt),
• mortgage loans to young families (reduced interest rates for spouses under 35 years of age),
• mortgage with maternity capital (to support families with two or more children),
• mortgage loans for “salary” clients (a reduced rate is offered for clients receiving salaries into a bank account).

What else should you pay attention to when choosing a bank? If you need to pay additional fees:

• commission for maintaining or opening a current account (if any),
• the amount of insurance (borrower insurance, title insurance, real estate insurance - depends on the tariffs of the insurance company with which the bank cooperates),
• the cost of producing a report on the market value of real estate.

Applying for a loan

When you have decided on a banking program and are sure that you meet its requirements, you can safely apply for a loan. To purchase an apartment with a mortgage, you must submit the following documents to the bank:

• passport of a citizen of the Russian Federation of all participants in the transaction (borrower, co-borrower (spouse), guarantors, if any),
• documents on marital status,
• documents confirming income,
• certificates, schedules, documents on current obligations (about payment of alimony, existing loans, etc.).

The package of documents may differ depending on the requirements of the bank. You may also need SNILS, an insurance policy, education documents, a driver’s license, etc. When submitting documents, you must fill out a form and application. It is advisable to indicate the most accurate and truthful information - this will help increase the chances of approval of the application.

After 1-5 days, the credit officer will inform the bank about the bank’s decision and inform you of the maximum possible amount to be disbursed, the approved rate and payment schedule.

If the application is approved (the decision is valid for 2-6 months), it’s time to start looking for a suitable apartment.

Selecting an object for a mortgage loan

When purchasing real estate in a building under construction, you should consider options only in houses accredited by a bank. This will simplify the mortgage transaction procedure as much as possible and protect you from scammers. The money will be transferred directly to the bank account of the developer or contractor, and the right to claim the apartment will pass to you.

Documents on the object for submission to the bank:

• preliminary purchase and sale agreement (agreement of intent, investment agreement, etc.) concluded with the developer,
• documents confirming payment of the down payment (receipt, cash receipt) from the developer.

Thus, the package of real estate documents is minimal, but at the same time, purchasing square meters on the primary market is associated with risks - bankruptcy of the developer, missed deadlines, etc.

In the case of purchasing an apartment on the secondary housing market, the package of documents is much wider and may differ in each specific situation. So, you need to collect:

• title documents (certificate of state registration of property rights, purchase and sale agreement (or donation, division of property, etc.),
• copies of sellers' passports,
• copy of personal account,
• technical, cadastral passport,
• extract from the Unified State Register.

They may also request:

• documents confirming the legal and legal capacity of sellers (certificates from dispensaries),
• certificates of absence of debts for utility bills, property taxes,
• other documents.

If real estate is purchased with a land plot, the list for the application is supplemented with documents on land ownership and the boundaries of the land plot.

After preliminary approval of the application, a market valuation report must be ordered and insurance policies must be provided.

Concluding a loan agreement and issuing a loan

When the bank has made a positive decision on the mortgage application, the most exciting and crucial moment begins - concluding a loan agreement and issuing loan funds.

Until now, banking institutions have two schemes for issuing loans: after state registration of the transaction and using a safe deposit box. In the first case, the calculation algorithm is as follows: on the day of concluding the loan and security agreements, all buyers and sellers endorse the real estate purchase and sale agreement. On the same day, the borrower transfers the amount of the down payment to the owner of the apartment in cash or by transfer to the seller’s account, and a receipt for receipt of funds is drawn up.

Next, all documents are transferred to the Registration Authority and within 5 working days the owner of the apartment changes. For final settlement, the certificate is handed over to the bank employee, on the basis of which the amount of credit funds is credited to the borrower's account and then transferred to the seller. Confirmation of receipt of the amount and final settlement is the second receipt.

How does a mortgage transaction work using a safe deposit box?

When renting a cell, credit funds are issued on the day the loan documentation is signed. The amount of the down payment and loan funds is placed in a cell in the presence of a loan officer, borrowers and sellers and remains there until the state registration of the transaction. After submitting the certificate for the apartment to the bank, the cell is opened in the same composition, the money is transferred to the seller with a written receipt.

Registration of a transaction

In order for the transaction to be carried out with the registration authority (Justice, Rosreestr, etc.), you need to submit an application to sellers and buyers indicating personal data. The application must be accompanied by title documents, copies of passports, and a receipt for payment of the state fee. If the seller's property is a joint property, the spouse's consent to the alienation of the property will also need to be drawn up by a notary.

Registration of transactions with encumbrances will require 5 working days, while ordinary transactions for the purchase and sale of real estate are registered within 30 days.

Features of mortgage programs

• Purchasing real estate on the secondary housing market

Since this segment is most in demand, the chance of encountering scammers is greatest - the apartment may be mortgaged, illegally alienated, etc. If you doubt the legality of the sellers’ actions, we recommend taking out title insurance - this will protect you from losing your home in the event declaring the transaction invalid.

In addition, the finished housing must meet the bank's requirements. For example, it will not be possible to buy an apartment on the 1st floor with a balcony built on the ground - such redevelopment is very difficult to legalize. The same applies to other redevelopments - displacement of wet spots, demolition of load-bearing structures, etc. As a result, the bank will not miss such a loan application.

There are other requirements for the object of collateral (each bank has its own): the housing should not be dilapidated, be in disrepair, should not have wooden floors (in multi-storey buildings), the distance from the city should not be more than 30-50 km, etc.

• Buying real estate in a new building

Purchasing real estate in a house under construction certainly involves risk, since often the borrower becomes the owner of the square meters even before they are built. This promises the possibility of poor-quality construction of walls, ceilings, floors, as well as poor repairs and finishing.

In addition, as mentioned above, there is a risk of bankruptcy of the developer, which will lead to the fact that the houses will not be built at all. To protect themselves from illiquid property, banks require a guarantee from 1-2 individuals.

It is also worth noting that the borrower has the right of claim for the entire construction period; he acquires ownership rights only after the house is commissioned and recognized as residential.

• Purchasing a share, a room

Purchasing a share or a separate room in an apartment is possible with the help of a mortgage loan only if, after the loan is issued, the entire property will belong to the borrower (in other words, there must be a redemption of the last share). We have already described how a mortgage is issued for a room and a share.

• Buying a house and land

An individual house on a plot of land or a townhouse are considered less liquid housing, so banks are reluctant to issue loans - the rate for this type of lending is higher. This is discussed in a separate post.

We hope you have no questions left. If there are any, please ask them in the comments. We would be grateful for your positive assessment of the article and repost on social networks.

Mortgages are scary not only because of the need to repay money over a long period, but also because of the possible complexity of the loan application procedure itself. Before you start, you should study the step-by-step instructions and the features of individual loan products.

The stages of buying an apartment with a Sberbank mortgage look step by step like this:

1. Study of the real estate market, approximate assessment of the value of the selected property, loan size;
2. Analysis of mortgage programs offered by Sberbank;
3. Approximate calculation of the monthly payment, independent assessment of the chances of loan approval;
4. Collecting a package of documents for applying for a loan;
5. Search and collection of documents for the selected apartment upon approval of the loan application;
6. Registration of a transaction for the purchase and sale of an apartment, signing a mortgage agreement, home insurance contracts, health and life insurance contracts for borrowers;
7. Registration of ownership rights to an apartment.

At each stage there are details that need to be studied in advance; step-by-step instructions for purchasing an apartment with a mortgage will help with this.

Studying the situation on the real estate market

When applying for a secondary property, step-by-step instructions involve a preliminary study of real estate offers - this is where you should start in order to profitably buy an apartment with a mortgage. This step is necessary, otherwise it will be difficult to decide on the loan amount.

You can take out a mortgage in Sberbank for a new building both from the bank’s partner developers and from other companies. In the first case, the rate may be lower.

When concluding an equity participation agreement with a non-accredited developer, the following are additionally provided:

• extract from the Unified State Register of Legal Entities;
• a document certifying the rights of the authorized person who signed the DDU on the part of the developer;
• building permit;
• documents confirming the status of the land plot - lease agreement or certificate of ownership;
• permission to commission;
• act of acceptance and transfer.

Methods for collecting information can be different: you can contact a specialized agency, study publications and instructions for choosing in specialized newspapers, on Internet portals. Sberbank also has a proprietary service for selecting housing both on the secondary market and on the market of new buildings. They also place mortgage applications on the DomClick resource and consult with bank specialists.

Having found out the cost of apartments in the chosen category, you need to evaluate the possibility of paying the down payment with your own funds. For housing lending programs, according to Sberbank instructions, 15% of the price is required.

Analysis of mortgage programs

Sberbank offers 6 housing lending products for the purchase of real estate in the primary and secondary markets, for preferential categories of borrowers (young families, military personnel), with the possibility of making a first payment or repaying part of the debt using maternity capital, as well as for the purchase of suburban real estate and the construction of individual Houses.

A rate of 6% or more is offered to young families as part of the program “for families with children.” The preference is available to families in which a second or third child is born between December 1, 2018 and December 31, 2022.

For other borrowers, a minimum rate of 7.1% is offered under the “Purchase of Housing under Construction” program. As part of this project, you can purchase real estate on the primary market from developers - sellers - identified by the bank. The maximum possible loan amount is 85% of the contractual or estimated value of the purchased property.

You can buy an apartment on the secondary market on credit at a rate of 8.6% as part of the “For Young Families” promotion. At the stage of choosing a program at Sberbank, you need to clarify all the nuances about a mortgage for an apartment. The size of the rate depends on the availability of a salary project in Sberbank, the amount of the first payment, and the repayment period of the loan taken.

Assessing your own chances of getting a loan

You can evaluate the potential possibility of obtaining a loan using. By entering data on the income, expenses of the borrower's family, the cost of the loan object, the loan term, the size of the first payment, you can find out the amount of monthly payments and the total overpayment on the loan. The calculator will also show the maximum loan amount that a borrower with a certain income can qualify for.

Calculations on the loan calculator are preliminary; for clarification, you must contact a Sberbank branch. The monthly loan payment should not exceed 50% of the borrower's income.

It is also necessary to take into account the requirements of Sberbank for potential clients. Citizens of the country can apply for a mortgage for an apartment:

• aged from 21 to 75 years at the time of full payment of the loan or up to 65 years, if the borrower did not confirm the fact of employment when filling out the application;
• working at their last place of work for at least 6 months. If the applicant receives a salary not according to the bank’s salary project, then his total work experience over the last 5 years must be at least 1 year.

Documents for obtaining a mortgage loan

To apply for a loan, you must provide the following documents to Sberbank:

• application form;
• a copy of the passport of the borrower and co-borrowers;
• a second document, for example, TIN, SNILS, medical policy, international passport, driver’s license;
• certificate of registration at the place of stay, if registration is temporary;
• income certificate in form 2-NDFL, for individual entrepreneurs - tax returns;
• a copy of the Work Book certified by the employer;
• Marriage certificate (if available);
• Child's birth certificate (if available).

If earnings are received as part of the Sberbank salary project, then confirmation of the amount of income and length of employment is not required.

Under the “” program, you must provide a certificate certifying the family’s right to receive maternity capital funds, and a document from the Pension Fund confirming the amount of the account balance.

Following internal instructions, managers may require other documents to assess the potential risk of issuing a loan.

The decision to issue a loan is made within 3-5 days and is valid for 60 days.

Choosing housing and collecting the necessary documents

Having received a positive decision from the bank and having learned the amount of the approved mortgage, you should actively search for and select the appropriate apartment yourself or with the help of realtors. The requirements put forward by the banking structure for mortgage real estate should be taken into account:

• the building in which the lending facility is located should not be in disrepair, dilapidated, or scheduled for demolition;
• absence of illegal redevelopment;
• availability of all communications.

When an interesting object is found, a preliminary purchase and sale agreement is concluded.

Then the preliminary purchase and sale agreement must be submitted to the bank along with a package of documents for the property, consisting of:

• agreements of purchase and sale, donation, exchange, and so on, that is, documents on the basis of which the seller acquired the right of ownership;
• cadastral passport of the apartment;
• an extract from the Unified State Register and a Certificate of Ownership, if the object was purchased before 01/01/2017, or an extended extract from the Unified State Register, if the registration of the last transfer of ownership occurred after the specified date. The bank accepts extracts from the Unified State Register issued no later than 30 days ago;
• certificate of absence of debt on utility bills;
• a copy of the apartment map;
• photocopy of the seller's passport;
• bank details of the seller's account;
• confirmation of the buyer’s own funds - a receipt from the seller for receiving a certain amount or a certificate from the bank about the availability of funds in the buyer’s account.

When starting to collect the necessary documentation, you need to clarify a number of questions, for example, if:

• the owners of the alienated property are incapacitated citizens, including minors, then the consent of the guardianship authorities will be required;
• the property was purchased by a married seller, then a notarized consent of the spouse to the transaction will be required;
• a share of real estate is acquired, then a notarized refusal of purchase by the owners of other shares is written;
• The sale transaction is carried out by an authorized representative of the home owner; his passport and notarized power of attorney will be required.

Then an assessment of potential mortgage housing is carried out.

You need to imagine what stages future homeowners need to go through, look at the step-by-step instructions on how to apply for a mortgage at Sberbank in order to determine the procedure for receiving papers, because each of them has an expiration date, and their preparation also takes time.

If the documentation for the purchased property is not ready within the time period allotted by the bank, you need to submit a new application for a mortgage loan.

Considering that the seller will not collect any documents without the bank’s consent to provide a loan, it is advisable to simultaneously look for housing and contact the bank with primary documentation and a questionnaire.

Sberbank's security service, according to instructions, examines the documentation and assesses the risk of issuing a mortgage. After this, the decision is communicated to the client, and the process is initiated, step-by-step instructions for which are presented below.

Agreement for the purchase and sale of an apartment under a Sberbank mortgage

The purchase and sale agreement for housing with a Sberbank mortgage, in general, has a standard form. However, it must contain a mandatory mention that part of the cost of housing will be paid using borrowed funds provided by this particular bank, and also that the purchased property will be pledged, and Sberbank will act as the pledge holder.

The document contains the lender's details, but only the buyer and seller sign it.

First, a preliminary purchase and sale agreement is formed and signed, and then the main one. The texts of both documents are not fundamentally different. It’s just that the first one states the intention of the parties to conclude a transaction, specifies the deadlines for its registration, and the second one speaks directly about the purchase. The preliminary agreement is submitted to the bank's internal services for analysis along with a package of documents on the purchased property.

Costs when applying for a mortgage at Sberbank in 2018

Among the main expenses of borrowers are the following:

1. state duty when applying to the MFC or Rosreestr - 2,000 rubles when purchasing housing on the secondary market and 350 rubles for pre-sale housing;
2. notary services, if the transaction is carried out through him - from 1% of the transaction amount. If necessary, they pay for drawing up powers of attorney - about 1000 rubles;
3. assessment of the purchased object – from 2000 rubles;
4. realtor services – from 35,000 rubles. More often than not, this expense item is included in the price of housing, and the seller pays this specialist;
5. insurance contract for the purchased property – from 0.15% of the loan amount;
6. personal insurance of the title co-borrower – from 1%. This type of protection is voluntary.

To reduce debt servicing costs, you can take advantage of discounts on mortgage programs provided by the bank:

• 1% when taking out life and health insurance;
• 0.1% for electronic transaction registration. The cost of the service is 6,700 rubles. The state fee for registration will be 175 rubles;
• 2% when purchasing housing from an accredited developer;
• 0.3% when purchasing certain real estate properties presented on the Dom Click website from Sberbank.

The size of the down payment affects the interest rate on the loan: the higher it is, the less interest will be paid on the mortgage.

Additional costs when applying for a mortgage at Sberbank

Additionally, the following types of costs are possible:

• safe deposit box (from 1,500 rubles), if settlement with the seller is expected in cash;
• copying documents;
• Title insurance (protection against loss of title) is a voluntary type of insurance that you can refuse to take out.

The seller pays for ordering an extract from the Unified State Register (400 rubles). Certificates about family composition and the presence of debt for housing and communal services are free.

When is the down payment made on a Sberbank mortgage?

The down payment for a mortgage usually comes from the future homeowners' own funds. Most often this amount is divided into 2 parts.

The first is an advance or deposit. In the first case, if the transaction does not take place for one reason or another, the entire amount is returned to the buyer. In the second case, if the buyer is the culprit for abandoning the home, then the money remains with the seller, and if the seller, then he compensates the second party for the deposit in double the amount.

The amount of the first part of the advance is determined by agreement between the parties. More often this is an amount in the range of 50,000-100,000 rubles. It is handed over to the seller upon signing the preliminary purchase and sale agreement.

The second part is given on the day of registration of the transaction, when the main purchase and sale agreement is drawn up. The loan documentation is signed on the same date.

Each transfer of money must be accompanied by the signing of the relevant papers.

If we are talking about cash, then the necessary inscriptions are made on the purchase and sale agreements (both preliminary and main). Additionally, specifically for Sberbank, they write a receipt confirming receipt of funds. It is advisable that the seller write it personally and sign it only in the presence of the buyer.

If a non-cash transfer is intended, then a bank document confirming the fact of transfer of money is sufficient.

When Sberbank transfers mortgage money to the seller

The relevant authorities have 5 working days to complete registration actions regarding mortgage transactions. After their expiration, the buyer must receive registration documents, enter into the necessary insurance contracts and provide the resulting package of documentation to the bank.

After this, the loan application is signed. At the same time, an application is submitted to transfer these funds to the seller to the account whose number is specified in the purchase and sale agreement.

In order not to lose on commissions when receiving funds, it is beneficial for the seller to have an account in the same regional bank in which the buyer receives the loan. When transferring funds to another region or to another bank, the seller will have to pay a commission fee.

It is possible to receive final payment in cash. Then the funds will be received on the day the transaction is completed, before visiting the registration authority. But they will be placed in a safe deposit box, and the money can be withdrawn only after the purchase and sale agreement has been registered, that is, after the same 5 working days.

Concluding a real estate purchase and sale transaction

At this stage, the borrower signs a number of agreements step by step: on the lease of a safe deposit box (if necessary), the purchase and sale of a property with the seller, and a mortgage with the bank.

The procedure for obtaining a mortgage and registering a property can be simplified if you use a paid service from Sberbank: electronic registration of a transaction. In this case, support is provided by a personal manager. An extract from the Unified State Register will be sent by email. This method of registration is available only on the condition that the property is not in shared ownership, and after registration of the sale and purchase, the ownership will not be shared.

Property selection

If you expect to need a mortgage to buy a home, you will have to look at the property in advance.

This is especially important if you are purchasing a new building. The fact is that usually at the early stage of construction of a residential complex or village, when the risks of both banks and investors are too high, 1-2 partner banks cooperate with the developer. Therefore, precisely at the moment when the developer’s prices are the lowest, the range of mortgage programs for you will be limited.

Banks least of all like countryside villages in which land plots are sold. The reasons for this are the unstable market price of such land and its questionable liquidity, which ultimately depends on the success of the developer in developing the village. However, large banks have mortgage programs for such cases. But the mortgage is given here for a dual purpose: purchasing a plot and building a house. Construction time will be limited, and mortgage interest until the new house is put into operation will be 1.5-2% higher than standard.

But even when buying a secondary car, it is advisable to look at the desired objects in advance. Otherwise, how will you know what funds you will need for your mortgage?

Choosing a mortgage program

Based on the chosen housing, you need to decide on the choice of bank. There are two main criteria here:

• Are the bank's conditions suitable for you?
• Do you meet the bank's requirements for borrowers?

If we talk about the first criterion, then it is unlikely that you will be able to save on interest. Typically, banks that offer the best interest conditions require several types of insurance and charge commissions for various actions (considering a loan application, transferring money). What you should really pay attention to is the maximum loan size that you can take out from a particular bank and the size of the down payment.

As for the second criterion, if you have difficulties confirming your income, place of permanent work and providing other documents from a numerous list, but have a significant amount for the down payment (30-50% of the loan amount), then contact the bank offering the loan "according to two documents." The interest on such a loan is slightly higher than standard (usually no more than 1-2%).

Preparation of documents and submission of a loan application

When communicating with a loan officer, try to find out all the details of the loan program. It’s better to even ask for a standard agreement on the proposed lending program. After carefully studying it at home, find in it the answers to the following important questions:

Don't know your rights?

• the presence of fees for services when lending and additional services imposed by banks on consumers “as a burden” (credit cards, etc.);
• the number of mandatory insurances and the consequences of refusing to take out one of them (by law, only insurance of the collateral is required);
• the possibility of early repayment of the loan, are there any penalties for such repayment;
• the maximum period of arrears on the mortgage, after which the bank will begin to collect the collateral from you.

The list of documents for a mortgage is individual for each bank. However, with the exception of loan programs based on two documents, you will in any case be required to provide a certificate of income and documents about your marital status.

Loan applications are considered by banks at different times - depending on the number of bureaucratic services within the bank and the complexity of the submitted package of documents. Thus, loans based on 2 documents are approved in 2-3 days, but an application for a standard mortgage can be studied by specialists from a credit institution for several weeks.

Selection of real estate and its approval by the bank

Having received approval of your loan application from one of the banks, you can begin choosing an apartment. If you have previously looked at which banks the developer of your favorite residential complex works with, then you can easily cope with the selection of a new apartment. It will be more difficult with the secondary. The purity of the legal fate of the apartment is very important here. Divisions of inheritance and divorces, registered minor children and conscripts are all reasons why a bank may reject an object. And believe me, here he is on your side: after all, the dubious past of housing can make itself felt in the present in the form of lawsuits challenging your ownership rights.

When you and the bank have selected an apartment, you need to have it appraised by a licensed appraiser. The bank will call you an appraiser. The results of the appraisal report determine how much credit you will be given.

Conclusion of a loan agreement

The next step will be the conclusion of a loan agreement. You will receive the money and will finally be able to purchase the apartment you have chosen. The transaction with the seller of the apartment is formalized through the Federal Service for State Registration, Cadastre and Cartography (or Rosreestr for short). This service registers the termination of ownership of the seller and the emergence of ownership of the buyer. Upon completion of registration (about 2 weeks), you will receive an extract from the unified state real estate register confirming your ownership of the purchased housing.

Now the time has come to fulfill what was promised to the bank (such a clause is always contained in the loan agreement) - and pledge the purchased apartment as collateral.

Insurance of purchased real estate and transferring it to a mortgage

Before concluding a mortgage agreement, it is necessary to fulfill the mandatory condition provided for by the mortgage law (mortgage of real estate): to insure the purchased object against the risks of loss and damage.

Perhaps the bank has also offered you to insure yourself, your property rights, or the risk of non-repayment of the loan to the bank. Agreeing to such conditions in the contract, taking out a loan with increased interest (this is usually a consequence of refusing one of the types of optional insurance) or contacting another bank is your choice. Here it is necessary to compare the amount of increased insurance payments and the cost of insurance.

After presenting the insurance to the bank, you draw up a mortgage agreement and a mortgage note. The mortgage agreement must be registered in the already mentioned Rosreestr service. But now you will not be given a certificate, but a copy of the agreement with a stamp on the registration actions taken and the registrar’s seal. Now in the state real estate register, which is maintained by Rosreestr, the encumbrance of your apartment with bank collateral is noted. It cannot be disposed of without the consent of the mortgage bank. As for the mortgage, it remains with the bank. This is a security that allows a credit institution to resell its right to claim against you under a collateral agreement if necessary. The mortgage will not have any effect on your relationship with the bank regarding the loan.

Electronic transaction registration

A number of credit institutions offer their clients electronic registration of transactions and mortgages directly at the bank’s office, without the need to visit Rosreestr. This method is more convenient both for the parties to the transaction and for the bank itself, while the amount of costs for the buyer (mortgage recipient) increases by only a few thousand rubles (usually within 5,000). This method is faster and safer.

To register the transaction and collateral, in this case, the seller and buyer sign a purchase and sale agreement at the office of the banking organization, the loan recipient enters into a mortgage agreement and an insurance agreement with the bank. After that, the bank employee scans all the necessary documents (primarily mortgage and sale and purchase agreements) and sends them to the Rosreestr service. After this, the buyer will only need to appear at the bank’s office again and pick up documents confirming ownership and mortgage registration.

So, we have told you step by step how to purchase a residential property with a mortgage. You should not be afraid of the complexity of the procedure, and the main thing to remember is that the bank is no less interested in you purchasing housing using the loan funds received, so the credit manager will help and guide you in every possible way.

First step

You can skip this step and start with the next one. But I still recommend doing it.
I recommend contacting someone who knows almost everything. It will then take much less time to choose a bank, the likelihood of receiving a loan will increase, and in a number of banks, a loan can be obtained under special programs with better conditions. The benefits of such treatment can many times exceed the monetary costs of paying for the services of a broker.

Then, I recommend going to a real estate company and entering into an agreement with a realtor so that buying an apartment with a mortgage was simple, and would not turn into an endless “walk through torment.” At buying an apartment on credit you need to take into account a lot of features: if a realtor professionally works with mortgages, he knows all these features.
Of course, the work of both a mortgage broker and a realtor costs money, but in the case of a mortgage, it is better not to save on this.
Although the choice is yours.

Step two. The bank is considering you.

By issuing money, the bank takes risks. Therefore, money is not given to everyone. The review takes from three to five days to one and a half months, depending on the bank and the sources of your income.

Step three. We are looking for an apartment.

Finding an apartment is not difficult: there are many websites on the Internet, as well as print publications, where advertisements about apartments for sale are published. But! The apartment needs to be checked, all the documents on it need to be collected. Moreover, since it happens buying an apartment with a mortgage, and not for cash, the apartment should please not only you, but also the bank.
We take this step when there is a positive decision on the previous step. If the decision is negative, we look for another bank, and go through the previous step with another bank

Step four. Grade.

The bank must be sure that it does not issue a loan more than the percentage of the cost of the apartment as provided for in its loan program. Therefore, the apartment needs to be assessed. The appraisal certificate is submitted to the bank.

Step five. The apartment is approved by the bank.

The apartment has been found, the documents have been collected and sent for verification to the bank and insurance company. The bank's security service, together with the legal department, as well as employees of the insurance company, examine the apartment you have chosen. If they are satisfied with everything, then you can buy this apartment.

Step six. Loan agreement.

Before the transaction you sign. Under this agreement, the bank prepares the necessary money for you so that the seller of the apartment (in the event of selling the apartment) can receive it.

Step seven. Money.

Depending on the bank, the money is transferred to the seller in different ways. Either through a safe deposit box or to the seller's account. If through a deposit box, then the deposit of money into the box occurs before state registration.
Money can also be transferred through a letter of credit.

In the case of a new building, the bank transfers money to the developer by bank transfer.
Each method of transferring money has its own nuances.

Step eight. Notarization.

Since June 2, 2016, notarization has become mandatory for a number of transactions. These are transactions for the alienation of shares in the right of common ownership of real estate, including the alienation by all participants in shared ownership of their shares under one transaction.
That is, if the alienated apartment is registered as shared ownership, for example, between a husband and wife, then such a transaction is subject to mandatory notarization, with payment for notary services, of course.

If the alienated property is registered as individual property, the agreement is not subject to mandatory notarization. But the bank may require a notarization. If it is required, it will have to be notarized. The bank may also require signatures on the mortgage to be notarized. But even if the bank does not require any of this, a visit to the notary will still have to be made: to certify the consent of the spouses to the transaction or vice versa: to write statements that the parties to the transaction are not married.

Step nine. State registration.

The transfer of rights occurs at the time of state registration. Registration of transactions lasts from 3 days to a month.

Step ten. Insurance.

Sometimes this step precedes the transaction.
The bank takes risks and wants to reduce its risks. The bank reduces its risks, as usual, at your expense. That is, you pay the insurance company.

I skipped a number of small steps, such as “cash out.” You will definitely learn about them. Even if you are confronted with a fact, it’s okay: the price of the issue is not high.