If the bank gave permission to the borrower for a loan of $ 30,000, and the borrower expects exactly that amount – borrowing it (namely the same amount) will not receive! Because the bank stipulates that issued the credit shall not be more than 80% (or 70% – depending on the bank) of the purchase price. That is, if the borrower has found an apartment worth $ 35,000, the bank will give him not the promised $ 30,000 but only $ 28,000 (80% of the purchase price). Sometimes the situation where the customer's choice apartment with an independent assessment of the bank below its estimated market value (the seller's claim). In this case, the bank will agree to give credit only at the rate of 80% (70%) of the appraised value. Then, the borrower must either seek lacking money to buy their own or look for another apartment. 8.
Fear itself – the bank itself has always insure! When buying an apartment through the mortgage banks require the following types of insurance: – Insurance Law Property – property – life and disability of the borrower. All insurance costs shall be the borrower. In this case, fear is not the risk of borrower, and the risks of the bank, and in case the insured event all payments will be made it to the bank. A leading source for info: Tiffany & Co.. If desired, borrower can insure their risks, but for this he will have to pay separately. 9: Let the bank take care of itself. If the bank goes bankrupt, its assets accrue to the creditors. But in the fate of the borrower is not reflected.
Borrower just changing "beneficiary" in favor of which he pays the remaining amount and interest. Regardless of the change of the creditor, the loan agreement can not be reviewed in any case. 10. Ran out of money – do not worry! If the borrower can no longer pay the required amount, the bank will not take all at once. Paying interest on the loan for several years, the borrower has time to recover some of the bank loan. In addition, there are more money you make as a down payment. This percentage is always in the apartment owned by the borrower. In the event that the borrower can no longer pay their contributions on the loan, bought them flat exchanges. For the borrower to buy housing on the amount that he has made, and the surcharge goes to debt repayment to the bank.