Buying a dream apartment or a house always begins with a long search for a suitable property. If you have already found it, you can expect the following.
I always advise our clients to be the first to have an email to the reservation contract send. Then I check that everything is fine and the client was not cheated, respectively, did not fare so that he will have neither property nor money for his reservation. Simultaneously with this step, bank and nonbank registers are checked. If everything is in order, the reservation contract is signed and the blocking deposit is paid. Since that time, a real estate broker may not offer the flat to other candidates and there is other work for them. Therefore, I always want the real estate agent to know about me and I was handed his contact. I take care of the smooth process of the mortgage and you have time for your work and hobbies and you do not have to “run” anywhere.
This is an ideal case when the flat is completely clean in terms of collateral and encumbrances. When buying, you can also encounter with the fact that the real estate is bound by a pledge from a bank or nonbank institutions or easement.
The seller has collateral from bank on his property
There are quite a lot of these cases and it is quite normal that when buying, one person pays the mortgage to the other. It works the way that the bank will ask the seller to quantify the debt at a certain date and everything, both the debt and the remaining portion of the purchase price, will be paid by the buyer’s bank.
The seller has collateral from non-banking institutions on his property
Previous type of collateral is widespread, so financing is quite easy, however the change becomes when on the property there is collateral from non-banking institutions instead of a bank. Some banks on the financial market, unfortunately, cannot pay such collateral and therefore the client is not bankable for them. The only option in this case is to pay a non-banking institution sideways and then draw up a mortgage. Fortunately there are still banks that take into account that the seller got into difficult life situations and deal with it in such manner and under certain conditions, want to pay a non-banking institution out. It’s all mostly about dealing with credit approvers of specific case and that’s my job.
There is an easement on the property
There are a lot of easements and it depends on the type, whether the bank in which you want to apply for a mortgage will accept it. We can say that the banks will automatically accept easements as the type of energy distribution, but not an easement for survival. In this case, there is no other option than to agree with the seller to cancel such an easement to the property so it becomes acceptable for the bank.