THINGS YOU NEED TO KNOW ABOUT HOUSING LOANS

What is a Housing Loan?
Housing loan is a type of loan that provides the financial support you need for the housing purchase. But the most important point to know here is that the mortgage loan will not cover the entire value of the house. California Payday Loans

The home loan you would request from banks covered up to 80% of the value of the house you want to buy. This situation has been updated with a rate of 90% for residences up to 500,000 TL in March 2020. The value and class of the house can determine what percentage of the house price can be borrowed.

Another point to be known about housing loans is that banks keep the house mortgaged until your debt is over, in case there is a problem in repaying the loan they give. When you run out of debt, the mortgage on your house is removed.

What Are The Conditions For Housing Loans?

Some conditions are sought in order to get a mortgage loan that will help you to own your dream home. In other words, "Can I get a housing loan?" The answer to the question is about your compliance with these conditions. So, what are the main conditions for a mortgage loan?

• The person who will take out a housing loan must have completed the age of 18. The upper limit is accepted as 70 years.
• In order to be able to take out a mortgage loan, you must submit the documents requested by the bank in full. These documents provide detailed information about the house and you and respond to your loan request.
• Your credit rating plays an important role in the positive and negative response of the home loan request. When your credit rating is low, your request may receive a negative response. In the meantime, let us state that some of the factors that affect your credit rating are your payment pattern for the loans you have previously taken, your frequency of using credit, your credit card debt status.
• It is expected that your household income will be able to pay the mortgage loan monthly, less routine expenses.
• The conditions required for a housing loan are not the only individual. The house for which you applied for a loan must also be inhabited. If you want to apply for a mortgage loan for a house whose construction is not completed, then it is imperative to offer floor servitude. Many banks give loans for projects that are at least 80% completed. However, if there is a bank with which the housing project you will buy a house has a contract, then it is possible to take a loan before 80% of the building is completed.
• The bank's loan approval is directly linked to the appraisal report prepared after your application. The details included in this report determine whether the bank will approve your mortgage loan application.

What are the Documents Required for Housing Loans?

"How to get a housing loan?" Of course, the answer to the question is to apply properly first. The list of documents required for a mortgage loan varies according to the bank you will borrow from and your working status. For example, if you are a paid employee, you must submit the payroll, if you are retired, a copy of the salary card to take a mortgage loan. Although additional documents and information may be requested, the main documents are as follows: Best Payday Loans California

• Application form to be filled in the bank branch
• Identity card (Driver's license or passport can also be used instead of an identity card.)
• Residence document
• Income certificate (payroll or tax plate for self-employed workers)
• Photocopy of the title deed of the house to be purchased or the condominium deed and occupancy certificate

If you are a paid employee, in addition to the above documents, the following may be required:

• Photocopy of the signature circular of the company you work for
• A letter stating that there are no restrictions on your salary

If you are self-employed, the following documents can be requested in mortgage loan applications:

• Operating certificate
• Signature Circulars
• Balance sheet and income statement for the last 1 year
• Trade Registry Gazette registration
• Corporate Tax accrual receipt for the last year

After submitting the necessary documents, the appraisal process is carried out for the house you want to buy. Then you will be notified of the result of your loan request. However, we would like to note that in order not to apply with the missing document, you should contact the branch of the bank you want to take a loan from.

What are Housing Loan Interest Rates?

Housing loan interest rates can vary according to banks, as in other loan types. Another factor affecting interest rates is the loan term, that is, how many months you will pay back the financial support you received to the bank. 

The high-interest rates on housing loans caused those who wanted to own a house to delay their plans. But let's underline that the housing loan support package offered by public banks in 2020 offers a great advantage. This mortgage loan, granted by Ziraat Bank, Vakıfbank and Halkbank, offers a maturity of up to 15 years (180 months) with a 12-month delay. A mortgage loan interest rate of 0.74% in second-hand housing and 0.64% in zero housing can be applied. In order to benefit from the advantageous housing loan, the upper limit of the value of the houses should be 750,000 TL for Istanbul, Ankara and Izmir, and 500,000 TL for other cities. Payday Loans Services

How is a Housing Loan Calculated?

In order to determine the amount of the mortgage loan instalment, firstly, the mortgage loan interest should be calculated. The following steps need to be followed for the housing loan calculation:

• The specified interest rate is multiplied by the loan amount.
• This process is repeated for each month for the remaining principal, deducting the amounts paid.
• Then the amount to be paid with interest is divided by maturity and equal instalments are created.

It is a very difficult process to calculate the housing loan interest individually. For this reason, after you decide on the most suitable mortgage loan for you, you can also take advantage of the mortgage loan calculation tools on the banks' websites.

How to Calculate Credit Rating?

The credit rating is calculated by considering 5 factors. These factors affect credit rating at different rates. "What affects your credit rating?" The answer to the question is as follows with its proportions:

• Consumer loan and credit card payment habits: 35%
• Current debt situation: 35%
• New credit is withdrawn: 11%
• Loan usage intensity: 10%
• Other factors: 9%

The credit rating is between 0 and 1900. The risk situation is determined by collecting the percentages of each grade you have in the 5 elements mentioned above. The risk table according to the credit rating is as follows:

• 1-699: Most risky
• 700-1099: Moderate risk
• 1100-1499: Low risk
• 1500-1699: Good
• 1700-1900: very good

In addition, let's note that it is possible to increase your credit rating by paying your credit and card debts on time, not taking out loans unless you need them, and reducing your existing debt.