In the vast majority of cases, such liquid property, secured by which you can get a bank loan for a very solid amount, is immovable (housing, commercial objects, land) and movable (cars and trucks, agricultural, construction machinery, craft, aircraft apparatus, etc.) property. Credit organizations are willing to make large cash loans secured by real estate and valuable movable property, and for relatively large terms (several years). Because they are sure that the borrower, in order not to lose, for example, his home or car, will make every effort to repay such a loan, in strict accordance with the terms of the loan agreement. It is not possible to take a loan online with a collateral, in this case you can not do without visiting a bank.
However, there are a lot of questions and pitfalls waiting for the borrower to get a large loan amount secured by real estate or movable property. Let’s try to decide at least a few, the most basic of them.
- The main thing to know and understand – getting a loan secured by real estate or a loan secured by a car implies the presence of real risk of losing their valuable property. It is especially risky to deposit your home with a bank. If it so happens that the payments on the loan “pull” will not work, then it is quite possible to be “on the street”. Therefore, before taking a large loan from the bank to secure a car , or moreover, secured by housing or land, you should carefully calculate your options for repayment of loan money.
- The procedure for obtaining a loan secured by real estate or a loan secured by a car involves the presence of a stage of bank valuation of mortgage property. This means that it is the banking institution that will determine how much the collateral is worth and how much credit it can receive. Typically, a bank estimate of the value of the lien will be slightly below its real market price. Because credit institutions are inclined wherever possible to “lay” their credit risks.
- In the case of a loan secured by real estate or a loan secured by a car, the maximum available bank loan amount will not be the full value of even their bank valuation, but only a fraction of it. The mortgage loan coverage ratio can range from 50% to 85%, depending on the nature of the property and the lending institution. The entire amount of the bank’s remaining mortgage valuation will cover the same credit risks of the bank.
- Obtaining a bank loan secured by property is not as fast as you like, and can take anywhere from 3 to 14 days. In this case, to get a loan in a few tens of minutes, as with microcredit in the bank or in the MFO – do not go out. Only in highly specialized pawn shops, and only in the case of a loan secured by a car , you can turn everything in one working day.
- The basis of the list of documents, which will be required when making a loan secured by real estate or a loan secured by a car , are: passport of a citizen with an individual tax number (IDN), and title documents for mortgage property – immovable or movable (technique). Depending on the conditions of the credit institution, information (certificates) on income confirming the solvency of the borrower, written consent to pledge the co-owners of the property or co-residents, and other documents may be required.
Features of obtaining a loan secured by real estate
- The real estate includes land plots, as well as objects located on the land plot, the movement of which is impossible without their impairment and change of their purpose, including: perennial plantings, sections of roads and sidewalks, reservoirs, underground and ground communications. Real estate secured by which a bank loan can be secured is usually: private residential buildings with private land plots, apartments in apartment buildings, commercial objects (office, industrial or economic), plots of purpose.
- Loan secured by real estate can be obtained: a) in ordinary network banks (which include lending against real estate); b) in specialized financial companies specializing in real estate lending. The advantage of specialized financial companies may be a reduced procedure and less time spent on the loan, a disadvantage – a slightly higher interest rate on the loan.
- In general, the terms of loans secured by real estate is better than mortgage loans: a few percent lower interest rate, longer loan term (up to 5 – 7 years and more), a higher percentage of the body of the loan mortgage valuation (up to 75 – 85 percent). Because loans secured by real estate are more profitable for lenders because foreclosed mortgages are more liquid in the market, plus borrowers are more disciplined to pay them.
Features of obtaining a loan secured by a car
- The car does not belong to property “trifles”, which deal with ordinary pawnshops. This is a more “tasty” mortgage mortgage, with which large network banks (those that provide lending, including secured by large mobile machinery and equipment), and special, specialized pawn shops are happy to work.
- To put a car in a regular network bank is much more difficult than in a specialized auto-pawnshop. Yes, most banks only accept relatively new cars as collateral: imported ones up to 5 years old and domestic assemblies up to 3 years old. Older vehicles as collateral for banks are not interesting. Specialized auto pawnshops are less pedantic in this matter. There you can lay the car and older, but at a higher percentage, and with a smaller share of the cost of its valuation.
- In general, the procedure of obtaining a loan for a car loan is easier and faster than obtaining a loan secured by real estate . The fact that the car, as a moving object, can be “adjusted” directly to the workplace of the bank appraiser, than to significantly accelerate the passage of the stage of his banking assessment, plus documentary confirmation of ownership of the car is much simpler than real estate : housing, land, commercial properties.