If you have any real estate property, you can arrange a mortgage with the condition imposing a lien on the property. In practice, the mortgage secured an existing housing is very rare, if you compare it with the execution of a mortgage default.
When citizens applying for a mortgage secured by existing housing
Most often this occurs when the citizen wants to buy on credit facility, which does not meet the requirements of the Bank. In the design of a standard mortgage bank leaves in his pledge of purchased the contract of the property. This property must meet certain criteria, in which case the Bank. When non-compliance with requirements, if the property is not suitable for the requirements of the lender, a mortgage may not be framed. Then you can conclude the contract on condition that the collateral would be another property of the borrower.
For example, a citizen looking to purchase House old buildings or apartment in a building designated under wear. None of the Bank does not accept such property pledged as after such an object may have legal problems and procrastinating that the Bank does not need.
Requirements of banks to pledge
If the issued mortgages secured by their homes, this accommodation must meet the requirements of the Bank. Each lender will put forward their demands, but in general they are similar. It can be:
Requirement to building, housing should not be old;
The requirement of supply all necessary communications, housing should possess all amenities;
It is housing or building in which it is located, must not be old, emergency, or simply be in improper;
No illegal should be no alterations;
The object must be a legally clean;
You can meet the requirement of the absence in the premises of registered children.
This is a rough list of requirements, it is Basic. In General, all requirements are reduced to minimize the risks of the Bank, in which case he could easily implement the laid object and close the debts of the borrower. Choosing a Bank, be sure to the property in the pledge. Your object of pledge must meet certain Bank criteria.
Features of the design
Mortgage pledge of existing housing is not much different from the standard mortgage. Typically, banks require a set of documents relating to the seller and the object, in this case, all title documents to collect himself the borrower pledge as he leaves his home, rather than purchased.
The object property must be assembled documents, there should be a certificate of ownership and a document which will specify how exactly the method of citizen got the property object (the contract of donation, purchase, bequest, etc.). If the borrower is married, his second half should necessarily give consent to the operation.
Only after gathering the entire package of documents on the subject of real estate and legal purity of this object, it may be a collateral and credit will be approved.