Housing loan is a purpose loan and it can be classified as a special category of a long-term loan. It is granted for the purchase of apartment or house, as well as for the construction, reconstruction and adaptation of the residential building. Each bank defines the conditions for granting a housing loan by its business policy.
Documentation necessary for loan granting:
- Loan application (bank form);
- Employment and earnings certificate;
- ID card photocopy;
- Pre-contract on real estate purchase, verified at a competent court;
- Pre-invoice of a contractor for the construction, reconstruction or adaptation of the building for which the loan is applied for;
- Assessment of the value of real estate which will be used as a loan collateral;
- Documents regarding the real estate used to secure the loan (mortgage);
- Guarantors statements; and
- Debtor and guarantors statements on administrative ban.
Please note that each bank defines the necessary documentation to be submitted along with the loan application, and it may vary from bank to bank.
Loan collateral is defined by a bank. The following can be used as a means (instrument) to secure a loan:
- property which is the subject of purchase or some other property owned by the loan applicant or a property of other person which, under prior consent of the owner, is mortgaged.
- guarantees of legal and physical persons;
- bills of exchange signed by the loan applicant and guarantors;
- administrative bans for loan users and guarantors.
In case of repayment default, the creditor is entitled to activate the pledged instruments for the purpose of loan repayment.