How long does it take to process a mortgage application?
Many banks, when advertising their services, voice the possibility of obtaining a mortgage loan within one or two days. But in practice, everything is somewhat different; sometimes the decision-making process during the application review process can take up to several weeks.
The most important step in this process is the collection of documents that must confirm the borrower’s income and employment. After this, along with other equally important documents, the application is submitted to the bank for registration of a mortgage. The possibility of obtaining such a loan for the purchase of real estate depends on the final decision made by the lender after reviewing the submitted documents. This procedure takes some time.
What determines the review period?
Lending institutions may consider one client's application throughout the banking day, while another borrower may expect a decision on his application to be made within a whole week.
This approach to loan recipients is due to the fact that the lender knows one client better and can trust him, while the next candidate is not trustworthy and undergoes a more thorough check.
The main criteria that influence the processing time of an application are:
- whether the client is served by this bank at the time of execution of the mortgage agreement. If, for example, the borrower participates in a salary project and has an account opened with this financial institution, the lender can make a decision on it in a matter of hours. In addition, to obtain a mortgage you do not need to provide an extensive package of documents;
- documents are provided to the lender. The fewer questions raised by the certificates submitted for consideration and the information contained in them, the faster the decision will be made to allocate funds to the borrower for a mortgage;
- availability of co-borrowers and guarantors. Involving these individuals in the mortgage lending process increases the likelihood of loan approval. But this does not mean that the documents submitted by the loan applicant will not be analyzed and verified. This will also affect the time allocated for consideration of the application.
Other factors may also influence the length of time it takes for a bank to make a decision on a mortgage.
. The above list is not complete. Much depends on the chosen credit institution, the methods it uses to analyze the reliability and creditworthiness of the applicant, the availability of modern software and technical capabilities, experience in this lending segment, etc.
When are the keys handed over?
The keys must be transferred at the time of signing the transfer deed ; this norm is enshrined in Article 556 of the Civil Code of the Russian Federation. Here the buyer and seller have two options for what to do, however, they are not very different from each other. We'll tell you about each one.
- The law allows it to include a clause in the purchase and sale agreement indicating that this document is also a deed of transfer. In this case, the former owner of the apartment will give you the keys immediately after receiving the money from the bank. And the seller will be able to receive the money when the buyer becomes the full owner of the apartment from Rosreestr.
- Sign a separate deed of transfer to the apartment purchase and sale agreement. To avoid delays, it is advisable to start preparing it a few days before the expected receipt of the certificate from Rosreestr. Otherwise, the procedure is identical to point No. 1. The signing of the transfer deed takes place at the bank, where the buyer comes with a certificate issued by Rosreestr, the seller receives the money and issues the keys.
Attention! Any personal agreements, if they involve the transfer of keys in advance, must be agreed upon with the bank, since it is a full party to the transaction.
As you can see, buying an apartment with a mortgage consists of several stages. First of all, the financial institution must approve the applicant himself; here the main attention is paid to the solvency and reliability of the potential borrower.
The property is then inspected to ensure there is no third party ownership. After concluding a loan agreement, the bank does not transfer the money to the seller - but puts it in a safe deposit box (or uses another convenient method).
The closing of the transaction occurs only after registration of the new property right in Rosreestr. On average, 1-2 months pass from the moment of submitting the loan agreement to receiving the keys.
Is it possible to speed up the process?
You can make the processing of your application at your chosen bank faster. To do this, it is advisable to become a salary client of this financial institution, and you can get a mortgage by providing only two documents.
Also, the borrower’s application will be considered faster if he has previously made deposits here, taken out small loans and repaid them on time, and has an excellent credit history. Accordingly, it is advisable to apply for a mortgage loan from the bank that previously served this client.
You can speed up the process using the documents provided. Type 2-NDFL certificates have a great influence on the speed of consideration of the application. In this case, the client verification will be carried out faster.
But if the applicant submitted documents that included a certificate of income received in a bank form or in free form, the verification will take much longer. The lender must make sure how solvent and reliable the client is.
Such documents may be fake, so they are checked more carefully.
How does a mortgage transaction work at Sberbank?
How does a mortgage transaction work at Sberbank? In this article we will discuss the purchase of real estate on the secondary housing market.
1. Contacting the bank. Loan approval.
First you need to get bank approval. To do this, you need to contact the bank's mortgage manager for advice. Not every bank branch has mortgage centers. You need to find out where they are and go to the initial appointment. You can find out the approximate loan amount. The mortgage manager will make a calculation for you based on an oral interview. After this, you need to collect all the documents and submit them to the bank for review. List of documents for applying for a Sberbank mortgage. Then within a week the bank will give you an answer. It is not uncommon for a bank to approve a loan literally the next day.
2. Search for a property.
After the loan is approved, you need to start looking for an apartment. Previously, Sberbank gave two months or 60 days to search for an object. In 2017, Sberbank increased this period to 3 months or 90 calendar days from the date of loan approval.
It is advisable to find an apartment for direct sale, without a counter purchase. Sberbank has its own requirements for the loaned object. You need to familiarize yourself with the Sberbank requirements for the property in advance. Previously, Sberbank did not lend to apartments with unauthorized alterations; now it is quite loyal to this, the main thing is that the external boundaries of the apartment are not changed.
3. Collection of documents for approval of the object.
After you have found an apartment, you need to make a deposit for it to the seller and prepare a package of documents for approval of the property. Sberbank will provide you with a list of required documents. In addition to the main package of documents, an assessment of the market value of the property is required. The cost in the conclusion of the assessment report must be no less than in the preliminary agreement.
A distinctive feature of Sberbank is that the package of documents for a property includes a preliminary purchase and sale agreement. You must provide a draft purchase and sale agreement in the form of the bank. Other banks, as a rule, do not require this.
4. Approval of the property by the bank.
All documents for the property are checked by the bank's lawyers. Approval of a property in Sberbank takes on average 3–7 days. Now Sberbank is actively offering a legal inspection of an apartment, which costs 24 thousand rubles. Whether you should agree to it is up to you to decide; I do not recommend buying this service to my clients.
After approval, you need to insure the property. You need to select an insurance company and choose an insurance policy in advance, and the insurance procedure itself will take place on the day of the transaction. The moment of insurance is very important in a mortgage transaction, because it determines who will pay the mortgage in the event of an accident or the borrower becomes disabled: the borrower and his family or the insurance company. I highly recommend taking the time to study this issue. All details of mortgage insurance.
5. Transaction at Sberbank.
After the object is approved, a transaction follows. Previously, bank managers themselves set the date and time of the transaction. Now in the DomClick service you can sign up for a deal yourself. On the appointed day, sellers and buyers need to come to the bank for a transaction. First, the mortgage client signs an insurance agreement and a loan agreement.
After this, the lease agreement for an individual safe is signed or a letter of credit is opened if the money is transferred by bank transfer. If in a transaction, in addition to borrowed funds, your own funds are used, then the personal contribution must be in an account at Sberbank in order to withdraw money at the right time to put in a cell of an individual safe.
6. Final stage - at this stage the main purchase and sale agreement is signed, if the transaction is concluded in simple written form (not notarized). Signing all contracts and putting money into a safe deposit box is a lengthy procedure that can take from several hours to a whole day.
Insurance does not have to be carried out at Sberbank; you can insure yourself at any insurance company. The main condition: insurance must be available on the day of the transaction.
7. Notary.
If the transaction is notarized, then after depositing the money there is a visit to the notary. We notarize the deal and sign the main purchase and sale agreement with the notary. The notary creates a package for registration with the Federal Registration Service.
8. Submitting a package of documents for registration at the MFC.
By law, a notarial transaction is registered within 5 working days, but in reality it takes a little longer. Sberbank is now offering a new service – electronic transaction registration. The promised registration time for electronic registration is one day. In fact, the waiting time is a little longer, depending on the workload of Rosreestr.
9. Writing a receipt. After completing the transaction and receiving documents for the apartment, do not forget about a receipt for receipt of funds.
Disadvantages of the transaction at Sberbank
1. A transaction at Sberbank is not the most convenient when compared with other banks. Let's start with the fact that many branches do not have meeting rooms where sellers and buyers can sit down to leisurely review documents or write receipts.
2. You can rent only one cell per transaction, even if the transaction is a counter one. This is inconvenient for participants in a counter transaction when each of the sellers wants to have their own access to the cell.
3. Sberbank has access to the cell for only two parties: the seller and the buyer.
4. In the conditions of access to the cell, it is not always possible to specify the conditions necessary for the seller and buyer.
5. The transaction is slow and takes a lot of time.
6. Sberbank employees often make mistakes during transactions due to incompetence and lack of qualifications.
So, you get an idea of how a mortgage transaction works at Sberbank. Each transaction is purely individual and has its own nuances. Each transaction has its own difficulties and pitfalls that you need to be prepared for. If it’s difficult for you to delve into all this, you can always delegate these chores to a realtor.
If you have any questions, ask on my page on the social network “Vkontakte”. I will definitely answer!
Good luck! Galina Cherkis
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How does a transaction work through Dom-click?
Mortgage refinancing in 2021
Features of consideration periods
Depending on the mortgage lending program, the processing time for an application may vary.
. Therefore, you need to know in which cases you will have to wait longer, and when the bank will make a decision quickly.
For military mortgage
This type of lending has its own characteristics. In this regard, the processing time for an application for a military mortgage in major large banks today is up to 5 days.
Previously, this issue was considered in different banks, and often today it takes from 10 to 14 days.
For a mortgage in Sberbank
This financial and credit institution is one of the largest and strongest lenders providing mortgage loans to its clients. At the same time, the period for consideration of the application by its specialists is, in accordance with the data of the official website of Sberbank of the Russian Federation, from 2 hours to 5 days
.
If the process drags on for another couple of days, there is nothing to worry about, since the bank may have many loan applications pending. The client may need to provide some documents, etc. Sometimes the review period is delayed for a longer period, since the client cannot quickly provide the missing certificates requested by the bank.
For a mortgage at VTB-24
If the decision is made on a salary client, the processing time for the application at VTB-24 may be about 1-2 days. When requesting an amount of more than 500 thousand rubles, you will need to collect more documents confirming the client’s solvency and reliability. In this case, the deadlines are extended over a longer period of time.
If you have a positive credit history issued by BKI, VTB-24 will take up to 4 days to review your application.
If the bank branch has a high load, the application may be processed in about 1.5 weeks.
For a mortgage at Rosselkhozbank
The procedure for reviewing mortgage loans at Rosselkhozbank takes up to 10 working days.
For a mortgage at Gazprombank
This financial institution makes a decision on the possibility of obtaining a mortgage within 3-5 business days after submitting the full list of documents that the bank requests under this program.
For AHML mortgage
For AHML, the review procedure is paid, it takes longer than in conventional banks - more than 10 days
.
How long does the procedure take and what stages does it consist of?
The process of obtaining a mortgage includes several stages , they follow each other and are mandatory. Many borrowers believe that once the loan application is approved, the deal is in the bag and they can celebrate receiving a mortgage.
However, an equally important moment lies ahead - the approval of real estate for which the financial institution will issue money. And also conducting an assessment, concluding an insurance contract. A Russian who decides to take out a mortgage will be able to breathe out only after registering with Rosreestr.
Preparation of documents for a loan
Each bank has different requirements for borrowers:
- some offer loans only upon presentation of income certificate;
- for others, credit history is critical;
- still others implement higher or lower interest rates for borrowers with different income levels and levels of reliability.
On average, it takes one week to prepare documents. The package of documents required at the first stage consists of mandatory papers, certificates provided upon availability and those that are submitted at will.
Required documents:
- Completed loan application form.
- Russian citizen passport.
- A certified copy of the work record.
- Certificate of income (2-NDFL, tax return, extract from salary account).
- Certificate of state pension insurance.
For example, the employer undertakes to provide the employee with a certificate of income within three working days after a written application; bank account statements are transferred within five working days.
Additionally provided:
- Marriage certificate;
- military ID;
- marriage contract;
- driver's license;
- children's birth certificate - if available.
Important! The third group of documents includes certificates that the bank may request for additional verification of solvency, for example, certificates of real estate ownership, bank account statements.
Who reviews applications?
In this procedure, banks involve several of their departments simultaneously.
- Applications are subject to automatic scoring, and based on its results a certain amount of points will be assigned. If it does not reach a certain value, the client will be refused. In case of higher scores, the application will be sent to the next stage of consideration with a CI request. If it is bad, the bank will refuse to provide a mortgage loan.
- After scoring, the lender’s security service handles the application; it checks it for authenticity and relevance by submitting requests to the Federal Migration Service, the tax service, the Pension Fund of the Russian Federation, the borrower’s employer, guarantors, co-borrowers, etc.
- The application undergoes an analysis of the applicant’s documents in the analytical department with a forecast of the loan recipient’s ability to repay the mortgage throughout the entire loan term.
- The risk department assesses the risk of non-payment of the loan, the stability of the borrower’s work, etc.
