What is a mortgage loan?
Mortgage loan refers to a loan business conducted by mortgage. For example, housing mortgage loan is a personal housing loan business in which buyers use the purchased housing as collateral and the real estate enterprises that purchase the housing provide regular guarantee. The so-called mortgage means that the mortgagor transfers the property rights of the house to mortgage, and the beneficiary acts as the repayment guarantor. After the mortgagor pays off the loan, the property rights involved are immediately transferred to the mortgagor, and the mortgagor enjoys the right to use in this process.
Procedures for handling mortgage loans
The specific procedures for property buyers to apply for real estate mortgage are as follows:
1) Buyers who want to get real estate mortgage services should pay attention to this aspect when choosing real estate. When buyers learn that some projects can apply for mortgage loans in advertisements or through the introduction of sales staff, they should further confirm whether the real estate developed and built by developers has won the support of banks to ensure the smooth acquisition of mortgage loans.
2) After the buyers applying for mortgage loan confirm that the selected property has bank mortgage support, they should know about the bank's regulations on mortgage loan support for buyers from the bank or the law firm designated by the bank, prepare relevant legal documents and fill in the mortgage loan application form.
3) The bank that signed the house purchase contract receives the legal documents related to the mortgage application submitted by the buyer, and after confirming that the buyer meets the mortgage loan conditions through examination, it will issue a loan consent notice or a mortgage loan commitment letter to the buyer. Property buyers can sign the "Pre-sale Sales Contract of Commercial Housing" with developers or their agents.
4) After signing the house purchase contract and obtaining the payment voucher, the buyer will sign the house mortgage loan contract with the developer and the bank with the relevant legal documents stipulated by the bank, and stipulate the amount, term, interest rate, repayment method and other rights and obligations of the mortgage loan.
5) Mortgage registration: insurance buyers, developers and banks shall go through mortgage registration and filing procedures with the real estate management department on the basis of the mortgage loan contract and purchase contract. If the house is delivered in advance, the mortgage registration shall be changed after completion. Under normal circumstances, due to the relatively long term of mortgage loans, banks require buyers to apply for personal and property insurance to prevent loan risks. Property buyers should list the bank as the first beneficiary when purchasing insurance, and the insurance shall not be interrupted during the loan performance, and the insurance amount shall not be less than the total value of the collateral. The policy was handed over to the bank before the principal and interest of the loan were paid off.
6) After the house mortgage loan contract is signed, the buyer opens a special repayment account in a financial institution designated by the bank as agreed in the contract, and signs a power of attorney to authorize the institution to pay the bank's loan principal and interest and the arrears related to the mortgage loan contract from this account. The bank is confirming that the buyers meet the mortgage loan conditions and fulfill the obligations stipulated in the building mortgage loan contract. After handling the relevant formalities, the loan will be transferred to the bank supervision account opened by the developer in the bank as the purchase money of the purchaser.