Most citizens of our country are looking for options to purchase real estate or improve their living conditions. But the monthly incomes of an ordinary Russian family, inflation, and an exorbitant price increase make it impossible to save up for an apartment independently. In this case, many choose for themselves the option to buy a home through a mortgage. Banks are very satisfied with the situation and are happy to offer various programs for their potential customers. Good Finance, of course, is no exception.
Good Finance is the largest and most stable player in the field of mortgage lending. But before you start collecting the necessary documentation and writing an application for a mortgage, we recommend that you familiarize yourself with the conditions of banks. One should compare the offers of at least the top 10 banking organizations in our country. Identify all the pros and cons of mortgage lending.
Mortgage: Pros and Cons
Banks give any loan with one sole purpose – to make money on it, the mortgage is no exception. Whatever the program: “Social mortgage”, “Young family”, everywhere there are features and pitfalls. You should read all the documentation carefully. Read the loan agreement, read the general rules for granting a loan, carefully read the additional conditions on insurance. After all, you arrange long-term relationships with the bank, which in many respects will determine your life for decades to come.
What is the profitable mortgage?
The undoubted advantage is that when you make a mortgage agreement, you become the full owner of the apartment. If we are talking about secondary housing, then you can move in and live in your own apartment. Agree, to give money for your property, much better than, for example, for a rented apartment, constantly changing them. The second plus is the depreciation of money. Even if today the monthly payment at first will take away half of your budget from you, then over time the money will depreciate, and in five years the same amount will become not so significant.
Another positive thing is that the bank, trying to reduce its own risks, will fully study the issue of sale and purchase from the legal side. You can be completely sure that your transaction will be legally executed, and the probability of fraud is reduced to almost zero. Also, under good circumstances, in the future, there may be a decrease in the annual percentage, and you will be able to issue a refinancing loan in another bank, further reducing your expenses.
What is unprofitable mortgage?
The most difficult thing in the first stage is to accumulate enough money to pay the down payment. How much time can it take? All different. Of course, you can buy a loan without it, but in this option, the remaining conditions can be very unprofitable. Although you are members of any state. the state will make the initial payment for you. Also making such a contract, you should count on the fact that you pay more money than the monthly payment, reducing your principal debt. In this scenario, you will save interest on the loan agreement, reducing the amount of overpayment. So, paying the initial payment schedule, you risk eventually making money, which would be enough to pay for two apartments.
It will be necessary to provide a complete list of documentation that the bank will require. You will need to confirm your income level. And if the banking organization deems it insufficient, it will be necessary to attract co-borrowers or to provide already existing property as a pledge. And then, as approved by the loan, you will have about three months to provide an apartment option that would meet the requirements of the banking organization. In the case of new buildings, it is necessary for the developer to enter the list recommended by the bank, and when buying a secondary housing apartment would meet the criteria for integrity.
You should also not forget that even though you have the right to an apartment, obligations under the loan agreement will have to be fully fulfilled. Your property is pledged to the bank, and if you violate the conditions, bankers have the right to take away your property, no matter how much you live in it before.
What options for mortgage offers
Good Finance was the first to offer its clients a mortgage. Now it is the leader in the mortgage lending market, which has greatly expanded its program. In many ways, the design of this type of loan has become much easier at the expense of Good Finance. It is necessary to get acquainted with each program, you may be able to find an option that will minimize your costs. First, let’s take a look at the programs offered by Good Finance.
“Purchase of finished housing”
If you are planning to buy a second-hand apartment, this option is for you. Credit is given at the security of the purchased premises and on the security of the existing one. The program includes the following conditions:
- The interest rate varies from 12% to 13%. It depends on the amount of funds deposited initially and the term of the loan.
- The term of the contract is up to 30 years.
- Down payment of at least 15%.
“The acquisition of housing under construction”
Here the conditions are identical to the previous program. It is only worth noting that while the house is under construction, the annual interest rate will be higher by 1%. Thus, Good Finance insures itself against the fact that the building will not be completed.
“Construction of a house”
Such a mortgage is provided for the construction of a private house. The client pledges either a house under construction or a ready own property as collateral. Issued when making a down payment of 15%. Other conditions are.
- Term up to 30 years.
- The interest rate on mortgages from 12.5% to 13.5%.
Data is indicated for bank employees, if you work at an accredited enterprise, then the rate for you will be higher by 0.5%, for employees of some other company – by 1%. A complete list can be found on the Good Finance website.
Citizens who are eligible for this program for the down payment will be enough to pay only 10%. Or you can attach a certificate for the purchase of maternity capital, housing certificate.
- Term up to 30 years.
- Interest rate from 11% to 11.5%. For those who do not qualify for participation in the company’s payroll project, this rate will be higher: from 0.5% to 1%.
Such a social program is focused on improving the quality of life for the military. It has several advantages:
- No need to attract co-borrowers.
- Term up to 20 years.
- Interest rate is only 10.5%.
- Down payment 10%.