What documents are needed to obtain a mortgage?
Mortgage approval occurs in two stages. First, the bank calculates your creditworthiness. To do this, you need to fill out a form and attach scanned copies of supporting documents. Then you find a property and submit a set of documents for it for consideration. After approval, the deal can be concluded.
The list of required documents will differ depending on:
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Citizenship. Alfa-Bank provides loans to citizens of the Russian Federation, Ukraine and the Republic of Belarus. Foreign citizens, in addition to an identification document, must present to the bank proof of legal stay in Russia. Their list is approved by law, for example, migration card, residence permit and others.
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Type of your employment. For employees, standard proof of employment and income is required. For business owners, individual entrepreneurs, notaries and lawyers, the kit will be different.
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The presence or absence of co-borrowers. Their income may be included in the calculation of the maximum possible lending limit. In this case, the co-borrower provides the same set of documents as the main applicant. If the co-borrower’s income is not taken into account (for example, a non-working spouse), then only a passport is required.
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Selected mortgage program. Thus, you can purchase a new building or secondary housing with an increase in the interest rate by 0.5%, by presenting only a passport. To refinance a mortgage from another bank, you will need a complete set of documents.
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Type of object: housing completed or not. When purchasing a secondary home, you will need an extended set of documents and an assessment report.
Standard mortgage programs
These are classic offers for the purchase of apartments, houses and townhouses on the primary and secondary markets. An important feature of Otkritie Bank is that it is one of the few that has developed a separate program for purchasing apartments.
What the bank offers:
- Mortgage for new buildings. You can buy an apartment or house from a developer accredited by Otkritie Bank. Rates start at 7.9%.
- For a secondary market item. You can buy any residential property that meets the requirements of Otkritie Bank. Rates start at 8% per annum.
- With capital in the form of a down payment. But personal funds are still needed under the terms of the program. The client must pay at least 10-15% of the price of the object.
- Secured by existing housing. That is, the collateral becomes not the property being purchased, but the borrower’s other property. As a result, you can buy any object, even if it does not meet the bank’s requirements. You can also use money for repairs
- Purchase of a residential building with a plot. The down payment is at least 30-40%, the rate starts at 9%.
- Purchasing apartments from partners of Otkritie Bank under this program. PV - from 20-40%, rate - from 8.3%.
In addition to standard mortgage programs, Otkritie Bank refinances mortgages from other banks. That is, you can transfer a loan from another bank and service it on attractive terms.
For what period is it more profitable to take out a mortgage?
At Alfa-Bank you can get a mortgage for a period from 3 to 30 years. The shorter the term, the larger the monthly payment, while the total amount of overpayment is less. And vice versa. A mortgage loan is issued for a long period, and it is impossible to accurately calculate what will happen during this time. If you enter into a contract for a short period of time, a payment that seems convenient today may soon turn out to be unaffordable. Consider the risk of delay: you should not set the payment amount to be a large part of your income. We recommend choosing a longer term when applying for a loan so that the monthly payment amount is comfortable for you in any situation. If possible, pay the amount in excess and record early repayment of the loan to reduce the overpayment. You can do this for free in the bank's mobile application.
Main reasons for delays at each stage
Applying for a mortgage loan may take a long time. Typically, borrowers wait only 2-5 days for a response from the bank, but this period is extended in the following cases:
- The questionnaire contains incorrect information;
- The borrower has outstanding loans at this time;
- Low income;
- Damaged credit history;
- Lack of necessary documents in the package;
- A large number of co-borrowers.
The reasons for delays at subsequent stages may be related to the lengthy search for an apartment and its non-compliance with the requirements. If you are a participant in a government program with benefits, verification of documents will take longer. First you need to obtain a program participant certificate, and then begin the registration procedure.
The reasons for the long review of real estate papers are the registration of minors or incapacitated people in the apartment, the presence of a large number of owners.
Why do you need a down payment?
The down payment is your own funds, which are made to conclude a transaction for the purchase of real estate and are transferred to the seller. The presence of own funds proves to the bank that the borrower is solvent, reliable and capable of competently managing finances. The minimum amount is indicated in the lending program and ranges from 10%-15% (for apartments) to 50% (for a private house) of the cost of housing. There is no maximum threshold; it is only important that the loan amount is at least 600,000 rubles.
The larger the down payment, the lower the monthly payment and the higher the likelihood of loan approval. Maternity capital can be used simultaneously with your own savings or instead of them. To use it, indicate your desire to apply the state support measure in the mortgage application form, attaching a certificate of the balance of available funds. After concluding the transaction, go to a convenient bank branch, having with you:
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Passport;
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SNILS;
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Certificate for maternal capital;
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Real estate purchase agreement;
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Loan agreement.
When to contact a broker
Particularly busy clients or those who have a strong fear of any legal subtleties entrust the mortgage processing to a broker so as not to deal with this issue themselves. Such a specialist will find a suitable bank program, study all the borrower’s documents, check the availability of benefits and select several housing options to suit the client’s needs. But the potential borrower is able to resolve all these issues himself.
It is more difficult to do without the help of a broker if:
- selection and purchase of housing takes place in an unfamiliar city;
- several banks have already refused to issue a mortgage, you should not risk even more by receiving refusals from other banks, because this will inevitably affect your credit rating;
- there is no time or desire to delve into the details and the decision was made to pay for the services of an experienced specialist.
Citizens sometimes turn to brokers because they know that banks set more favorable rates for their clients than for borrowers who come on their own.
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about the author
Klavdiya Treskova - higher education with qualification “Economist”, with specializations “Economics and Management” and “Computer Technologies” at PSU. She worked in a bank in positions from operator to acting. Head of the Department for servicing private and corporate clients. Every year she successfully passed certifications, education and training in banking services. Total work experience in the bank is more than 15 years. [email protected]
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Mortgage by passport
For clients who receive salaries into Alfa-Bank accounts, a mortgage is available with a minimum package of one document - a passport of a citizen of the Russian Federation:
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Russian Federation passport;
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SNILS;
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Military ID (for men under 27 years old).
A mortgage loan can be obtained under any program: new building, secondary housing, refinancing, buying a house with a plot.
About filling out an application
An application for a mortgage at Otkritie Bank is completed at the bank’s office or remotely on the official website of the financial institution.
To complete an online application, you need to select a mortgage program and go directly to the filling out form. The application indicates:
- full name;
- name of the mortgage program;
- place of residence;
- mobile phone;
- Email.
Afterwards, they agree to the credit history check and the terms of personal data processing. Further indicate:
- employment information;
- information about work experience;
- passport data;
- monthly income and other information.
Having confirmed the application with the code from SMS, the applicant sends the document to the bank.
After reviewing the application, an employee of the banking organization calls the candidate and informs him of the decision made. If you refuse, you may simply receive a message.
If pre-approval is received, the applicant will need to go to the bank and submit the required documents.
After this, you will have to take out mandatory insurance, conduct an expert assessment of the property, and sign a purchase and sale agreement. The manager completing the transaction will inform the borrower about all necessary actions.
Mortgage with a full package of documents
In most cases, in order to receive the base rate on a mortgage loan, you need to provide a complete package of documents:
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Russian Federation passport;
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SNILS;
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Military ID (for men under 27 years old);
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Documents confirming employment and income.
The latter will vary depending on whether you are a business owner or an employee, and what field you work in (a separate set for notaries and lawyers).
About the purchased housing
Otkritie Bank provides a mortgage for the purchase of:
- a separate apartment in an apartment building;
- a separate non-residential premises intended for temporary residence in a non-residential building (apartment).
A mortgage will be denied if the property being purchased:
- room in an apartment;
- non-residential premises (except for apartments);
- apartment on the ground floor or basement.
The loan will not be issued if the housing is under arrest, is the subject of collateral or is the subject of legal proceedings.
Contacts
In conclusion, let’s look at the current contact details of the financial company in question, where you can contact specialists. They are ready to provide a free consultation, answer your questions, and help you apply for a mortgage.
- Hotline: 24-hour toll-free number available throughout Russia: 8 (800) 444-44-00;
- Paid number for those calling from another country: +7 (495) 224-44-00;
- VKontakte: https://vk.com/otkritiecorp ;
Requirements for borrowers and real estate in Otkritie
Opening makes broad demands on its future clients:
- Russian citizenship (mortgages are not issued to foreigners);
- permanent or temporary registration at the place of residence in Russia;
- age from 18 to 65 years (at the time of loan repayment);
- total experience of 1 year and in the last position at least 3 years.
Mortgages are not approved for the following categories of clients:
- employees of the gaming industry (casinos, poker clubs, etc.);
- realtors, if this is their main income;
- bodyguards;
- persons who are not officially registered at work.
The official spouse is necessarily involved in the agreement as a joint borrower. Co-borrowers can also be a cohabitant, close relatives of the borrower, the borrower's spouse or cohabitant. A total of up to 3 co-borrowers are allowed.
Property requirements can be downloaded here.
Download the full document:
Download Otkritie Bank Real Estate Requirements (PDF file).
Insurance
To take out a mortgage in Otkritie, you will definitely need to insure at least the real estate itself - the collateral. The borrower can voluntarily apply for:
- personal (life + ability to work) – recommended by Opening when paying off any mortgage;
- title insurance (protection of the owner’s legal rights from attacks by third parties for 3 years) – if the property is not purchased from the developer.
If you do not take out the insurance listed above, +2% will be added to the rate for each policy. For example, when buying an apartment on the secondary market, a client who refuses title insurance will receive an increase of +2 percentage points. to the bet. If you refuse personal insurance, the increase will be +4%.
Otkritie recommends purchasing policies from Rosgosstrakh, which is part of the same group as the bank.
Read in detail on our portal:
Mortgage insurance: rules and features
Borrower reviews
Among the advantages, clients note the fast processing of applications, customer focus and a very technologically verified interaction process.
This is not standard for Russian banks, but borrowers note that Otkrytie meets clients halfway and strives to solve problems individually. This is a definite plus.
