To buy a property most people need to apply for a mortgage. Knowing the steps and implications allows you to be more calm and prepared to handle your mortgage application serenely and effectively.
The important steps:
Choose the bank and submit the loan application Signed the preliminary sale you, buyer, must procure the total amount of the house by the date provided for the notary deed. If you do not have the total amount, you will have to go to a bank that will advance the necessary capital to complete the purchase.
Choosing the bank to rely on you will have to fill out the application forms for financing with the utmost precision.
Preliminary feasibility opinion The feasibility opinion of the operation is the verification of the data and the request that the bank makes to determine whether the financing can be granted, this depends on:
the net income of the applicant and the household;
the value of the property;
the legal technical suitability of the property;
the presence of other guarantees, provided by third parties as collateral or surety.
The documents The feasibility opinion shall also be determined on the basis of the following documents:
certificate of marital status or extract from the marriage certificate;
court judgment in the case of separated or divorced couples;
a copy of the preliminary sale;
a copy of the certificate of fitness;
a copy of the last deed of purchase;
Document of succession if the property has arrived by inheritance.
The self-employed must submit: the extract of the Camera di Commercio, a copy of the “Unico” model and the registration in the professionale register.
While employees will have to submit: the last paycheck, the CU and an employer’s statement relating to seniority.
The decision The bank shall decide on the decision taken by notifying the applicant of the decision. Whether the loan can be granted will determine the date of conclusion of the public act of financing.
Generally the maximum sustainable amount is 80% of the market value of the asset. Loans may also be granted at 100% but with higher rates and higher guarantees.
The loan agreement and the mortgage The mortgage contract is concluded in the presence of a notary and must be drawn up by public deed. This certifies the transfer of the sum from the bank to the customer, who will use it to pay for the new house. The customer will undertake to return the principal lent by the bank.
When entering into a mortgage agreement, your bank may also suggest you take out mortgage insurance to protect yourself from specific situations.
At this stage, the mortgage is also defined, which is the guarantee that protects the bank from the risk of insolvency of the debtor and must be registered in public real estate registers. The mortgage that is defined not only covers the capital provided, but also:
the interest of the agreed measure;
any default interest in the event of delays or non-payment;
insurance premiums; various charges and charges;
the legal costs to be borne by the bank.
The mortgage is extinguished after 20 years automatically, if the mortgage contract at a higher term the mortgage must be renewed.