A home loan is a financial service in which an individual or family borrows money from a bank or other financial institution for the purchase of a property. The loan amount is usually used to pay for the purchase of a property, and the property purchased is used as collateral. During the loan period, the borrower repays the principal and interest of the loan in installments at the agreed time and interest rate.
Detailed steps of the housing loan process:
- the borrower fills in the residential mortgage application before the loan, and submits the following certification materials:
The borrower's fixed economic income certificate issued by the unit to which the borrower belongs;
The loan guarantor's business license, legal person certificate and other credit documents;
Legally valid identity certificate of the borrower;
The relevant housing ownership documents or the proof that I have the right to control the housing in accordance with the law;
Appraisal reports, appraisals and insurance documents of mortgaged real estate
Contracts, agreements or other supporting documents for the purchase and construction of housing;
Other documents or materials required by the lending bank.
- The bank shall review the loan application, purchase contract, agreement and related materials of the borrower.
- The borrower submits the title certificate and insurance policy or securities of the mortgaged real estate to the bank for custody.
- The guarantors of both parties sign the housing mortgage loan contract and notarize it.
- After the loan contract is signed and notarized, the bank's deposits and loans to the lender are transferred into the selling units or building units specified in the purchase contract or agreement.
- Loan closing, loan closing includes normal closing and early closing of two kinds.
① Normal settlement:
on the maturity date of the loan (one-time repayment of principal and interest) or the last installment of the loan (amortization);
② Settlement in advance:
Before the maturity date of the loan, if the borrower has partially or fully settled the loan in advance, he shall apply to the bank in advance in accordance with the loan contract, and go to the designated accounting counter for repayment after the bank's approval.
After the loan is settled,
The borrower shall return the legal certificate and relevant supporting documents taken into custody by the bank by presenting his valid ID card and the loan settlement certificate issued by the bank.And take the loan settlement certificate to the original mortgage registration department to go through the mortgage registration cancellation procedures.
A home loan is far better than other loans because it helps you save tax and build an asset
You can get a home loan by taking out a mortgage. The home loan is repaid through EMIs(equal monthly instalments) and after completing the repayment process, the bank will transfer the title of the property back to you. If the borrower is unable to repay the loan, the lender of the home loan - a bank, non-bank finance company (NBFC) or any other financial institution - has the legal right to recover the outstanding loan amount by selling the property.
What are the advantages of borrowing to buy a house?
1, the risk of small loan to buy a house is relative to the full purchase, the full purchase of a one-time need to pay a lot of money to buy a house, if there is a problem with the house, the loss of funds can be a lot of money, and the loan to buy a house loss of funds will be much less. In addition, the mortgage loan is to borrow money from the bank to buy a house, in addition to the buyers concerned about the advantages and disadvantages of the house, the bank will also review it. In this way, the purchase of insurance will be improved.
2, less investment in fact, there are many friends around us are through the loan to buy a house, loan to buy a house seems to have become a common phenomenon. Loan is to borrow money from the bank to buy a house, do not have to let us spend a lot of money immediately, you can buy your own house, so we borrow to buy a house, is less money can also buy a house.
3, capital live loan to buy a house do not have to invest all the house purchase funds at once, loan buyers can choose to separate the funds, such as loans to buy to rent, rent to raise loans, and then other projects, so that the use of funds is more flexible.
