Mortgage in another city: conditions

The issue of buying an apartment in a city other than where you live and/or register can be quite acute for many reasons:

1. Changing of the living place
2. Work in another region
3. Buying a home for children
4. Investments in real estate for rental

But whatever the reason, almost everyone is more concerned with the question: how to do everything right? A mortgage in another city is exactly the case when it makes sense to entrust the transaction to a large real estate agency with a wide federal network. But only if the potential mortgage borrower at the time of the transaction is not in the city in which the property is located.

If the transaction is just taking place in neighboring cities and the buyer is ready to come to the transaction, then you can do it on your own; it will be enough to coordinate everything remotely and come to sign the loan agreement. Things are relatively simpler with primary registration in a facility accredited by the bank to which the application was submitted. Since a third-party seller, who is an individual who is able to make his own adjustments and wishes within the terms of the transaction, will not participate in the coordination.

Where to start choosing housing in another city?

Modern means of communication make it possible to purchase housing in any city in the Russian Federation quite safely and comfortably. They also make it easier to choose housing, since you can remotely select several suitable properties at once and find out everything about them.

The only stage that is not required when purchasing a home (more relevant for resale homes) is inspection of the apartment . This is the main risk associated with buying an apartment in another city. If you need to come to the transaction (not all banks allow you to conduct the transaction remotely), then you should consider the opportunity to come and inspect the property. Naturally, if you buy an apartment in another city, you should pay much more attention to the preliminary selection of the property in order to save time.

You will need to carefully weigh all reviews and recommendations for the property; it makes sense to use social networks and word of mouth. Those who already live in the area where they plan to purchase or are already primary buyers are usually willing to share their impressions.

If the goal is to save money, then you can carry out the transaction without intermediaries, but in this case additional risks fall on the buyer; it is advisable to at least have a good understanding of the prices and features of the city where the housing is purchased.

Everyone must evaluate their own strengths and capabilities in this matter. But it is worth remembering that even if you decide to apply for a mortgage in another city with the help of an intermediary organization, its activities should be evaluated, and reviews should only be trusted on third-party resources.

Realtors are focused, first of all, on the commission from the transaction, so you definitely shouldn’t relax and lose control over the purchasing process. They will really be able to offer options and give tips on the features of housing in another city. But you should not believe in special conditions and discounts from banks and insurance companies when the transaction is fully completed. In parallel with the work of the agency, it is worth consulting with credit and insurance organizations on the cost of services.

If the discount in the rate is 0.5-1 p.p. from the bank, when contacting through an intermediary is still possible (but not so often, since the bank must pay the agency a fee for the referred client), then the insurance company’s tariff will include a premium for the intermediary, in addition to the bank’s commission.

So, for example, with mortgage insurance for VTB24, the credit institution’s commission is 45%, when applying through an intermediary, another 15% goes to him, and the tariff will already take into account 60% of the commission. Thus, turning to intermediaries does not guarantee a profitable deal; in any case, you need to navigate the conditions yourself so as not to overpay.

What should you pay attention to when buying a home in another city?

If we talk about buying a secondary home, preparation for the transaction takes on average one month. In this case, the owner will only have to collect the documents required for the transaction for 1-2 weeks and coordinate them with the bank.

If you are buying a home in a foreign city, then the main thing is to be attentive, and also have a good realtor

When purchasing a primary property, you should pay attention to which banks have accredited the property under construction; the more credit institutions that have verified it, the better.

It is worth paying attention to the presence of leading credit institutions in the country among those cooperating with the developer. According to reviews, if there is Sberbank or VTB24, then the object is trustworthy. In addition, the wide federal network of these banks allows you to receive approval in one city and complete a transaction in another. With the help of VTB 24, a transaction can be carried out as remotely as possible, but in Sberbank this is more difficult.

The difficulty of obtaining a mortgage in another city for a bank is that the solvency will be assessed by a division in the city where the borrower is located and works, and the bank branch located in the region where the object is purchased will approve the object and formalize the transaction.

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In the life of any person, a situation may arise when you need to take out a mortgage loan in another region or city. There can be many reasons - a change of job, shopping for student children, moving for health reasons. Let’s take a closer look at whether it’s possible to get a mortgage in another city and how to actually do it.

What does a bank pay attention to when getting a mortgage in another city?

The bank will also evaluate the purposes for which an apartment is purchased in another city; if the purpose is a move that involves a change of job, then this is the most difficult option. When assessing solvency, a credit institution relies on the fact that this solvency will remain.

Bank conditions for purchasing housing in another city with a mortgage

And if the borrower buys an apartment in Vladivostok with credit funds, quits a high-paying position in Moscow, and moves to the other side of the country for some personal reason, then there are no guarantees that there will be no problems with paying off the debt to the bank. There is a high probability of failure.

In such cases, it is recommended to state that the apartment is not being purchased for the purpose of moving, but for investment or relatives. The mortgage term is long, a sufficient number of borrowers pay the mortgage, having long ago changed their place of residence, although neither a change of job nor a move was planned at the time of the transaction. So moving is not a violation of the terms of the loan agreement, the main thing is to avoid delays and there will be no problems with this issue.

The option is much simpler - when the mortgage is issued in the region where the person is employed. Many banks require registration in the region of registration, but the majority require registration in the region where the bank operates. These conditions are just for the case when a client has been working in one city for a long time and stably, but is registered in another.

In this case, work experience will play a decisive role - if this is some kind of temporary earnings or a permanent job change, then the loan will not be approved. If the goal is to buy an apartment and register in the city where the mortgage is issued, and the job is stable, then the likelihood of approval is high. Longevity reduces the likelihood that a borrower will lose his job, be unable to pay his mortgage, or move out of town.

A mortgage is still a secured loan, but the bank is still not interested in the deterioration of the quality of the loan portfolio, litigation and the sale of collateral.

If the borrower has a positive credit history, stable income (sufficient to service the mortgage), and a large down payment, then registration in another city or region will not play a decisive role.

In addition, there is an option when the borrower chooses an apartment not in the city where he is registered, and not in the city where he works. For example, in one of the resort towns for rent. This option is quite acceptable for the bank, as it implies an improvement in the client’s solvency. The main thing is that the credit institution has a branch in the city where the apartment is purchased. The likelihood of approval will be higher if you already own real estate in that city.

Difficulties in purchasing an apartment in another city

There are only three main difficulties:

1. Home inspection, which can be entrusted to someone, but personal presence is still advisable so as not to miss important details
2. Personal presence at the time of submitting documents to the Registration Chamber; not all banks agree on this stage by proxy
3. Mandatory personal presence at the transaction when signing the contract.

So, if you can easily visit the city in which you are purchasing real estate at least 1-2 times, then there will be no particular problems with completing the transaction. There is no point in coming immediately to all stages from inspection to delivery of the certificate of ownership, since the transaction can drag on for a period of one to several months (if errors are discovered in the documents or additional documents are required).

It is worth comparing the expenses for travel to another city with the expenses for the intermediation of a real estate agency, which can help reduce the visit to the city where the property is purchased to the required minimum.

List of documents for obtaining a mortgage loan

A secured mortgage for housing in another city will require a standard package of documents. At the time of submitting the initial application, the client provides a passport, SNILS, a copy of the last page of the work book with the employer’s stamp and an inscription about current employment, as well as a salary document. If a citizen rents out another home or works part-time, the bank will accept a tax return () as proof of solvency.

On a note. When a client applies for a mortgage to a salary bank, it is not required. The manager of the credit department will be able to easily verify the solvency of the interlocutor as soon as he generates a debit card statement for several months.

After receiving an SMS with the mortgage amount, the client needs to select an apartment and collect documents for the property. If the transaction takes place at the construction stage, the housing documents are transferred by the developer. Originals and copies of documents are sent by courier service to the office of the creditor bank.

When a secondary property has been chosen as a mortgage to purchase a home in another city, the buyer will have to monitor the collection of documents. A representative of the credit institution will check the availability of:

• a report from an independent appraisal company (Why do an apartment appraisal with a mortgage - we answer this question in another article);
• certificates/extracts of ownership;
• documents of receipt of property by the seller;
• technical passports (Do you need a technical passport for a mortgage, its validity period and where it is stored afterwards);
• extract from the house register (if available) Extract from the house register for a mortgage - how to get it?

Advice. Before you buy a new apartment from a developer in another city with a mortgage, check with the company’s managers to see if they practice remote mortgage transactions. If this is not possible, the property does not enjoy the trust of the bank - buying such an apartment is risky.

Important to know: Documents from the seller for the mortgage

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