The decision to take out a home loan, although it is a common choice for buyers, involves risks that should be fully understood by them.
What the prospective buyer should know from the outset, is that in order to obtain a loan, a judicial procedure will be required before the Single Member Court of First Instance of the property, which aims to secure the bank, through the registration of a Mortgage Note on the property.
Both the procedure before the Court and the procedure before it require the representation of the buyer by a lawyer, who will oversee the collection and delivery of the required documents to the bank, the collection and delivery of the required documents to the notary who will prepare the contract of sale, its presentation before the Court and in general the meticulous and diligent legal control of the whole process.
Regarding the procedure, the granting of a bank loan to cover housing needs (housing loan) includes the following stages:
1. Choosing the right mortgage loan based on your ability to repay the installments,
2.Loan application and borrower’s solvency examination by the bank. At this stage, the bank will look for the amount of the pre-note so that it is “covered” for that amount. Today banks give a loan for 70%-80% of the estimated value of the property.
3. Financial pre-approval of the loan after the submission of the first supporting documents. In this phase, the bank will ask for your personal and financial information, as well as information about the property to be purchased. That’s when you’ll find out how much you can borrow from the bank and how much equity you’ll need to commit. This process will determine how much money you can afford given the home you want to buy. The financial pre-approval is valid for 45-60 days and can be renewed by submitting the necessary supporting documents.
4. Upon completion of the assessment, the bank proceeds with the final approval of the loan.
5. Then, the property that is “given” to the bank as a guarantee for the repayment of the loan, is registered before the competent Court through a registration process. The presence of a lawyer is required as well as the representation of the bank.
6. Signing a loan agreement. 7. If everything goes well with the signing of the contract, the loan is disbursed.
The seller receives from the bank a check with the amount of the loan, as consideration for the value for the purchase and sale. In case you want to build a house, then the seller receives only the first part of the loan. The balance is usually given as the work progresses.
