Mortgage pitfalls: how not to make mistakes when taking out a loan

2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44

You need to prepare for a mortgage for a long time with a notebook, pen and calculator in hand. If you are wondering how it is more profitable to sell to the bank for the next few years, read what mistakes can ruin your whole slavery and how to prevent them.

Mistake 1. Take a mortgage with a maximum mandatory payment

The logic is iron: the larger the monthly payment, the faster the mortgage is paid, the less the overpayment is obtained. This is a direct savings.

In practice, it turns out a little differently. Let's say the income is 30,000 rubles, the mortgage payment is 17,000. This is even more than half, but the borrower has read a hundred articles on how to live on 5,000 rubles a month, so he can also save money.

Let's not talk about the fact that constantly living in a catastrophic economy is harmful and you can break down - it already depends on willpower. But in such cases, even small force majeure leads to delays.

How to do

Take out a loan for at least 30 years, but with conditions that you can fulfill without straining.

Even if you expect your income to grow, take the mortgage you can afford now. There will be money - close the mortgage ahead of schedule or find another use for it.

To do this, you need to reconsider all possible options and proposals of banks: someone offers profitable programs to young borrowers, families, bank clients, someone lowers the rate with additional insurance or provided that you collect a lot of documents to confirm the reliability.

Mistake 2. Renting a house for too long and not taking a mortgage

Taking out a mortgage is scary, especially when you rent a house. When renting, you do not have a headache due to taxes, repairs and utilities, you can drop everything and leave for the Himalayas, without fear that bank employees will come next. And the money goes to the loan, and it seems that it will never end. But to make sure it's time to get into a mortgage, you just need to take a calculator and do the math.

I took out a bank loan of 1,550,000 rubles for 10 years. The monthly payment is 21,700 rubles. If you pay according to the schedule, the overpayment will be 1,054,000 rubles. But I try to pay off the debt ahead of schedule, and if I keep the right pace, I will overpay no more than 600,000.

If all this time I rent the same apartment, I will give at least 1,800,000 rubles, and this is if the rental price does not increase.

How to do

Find a bank, sit down and calculate which apartment you can buy right now. If there is not enough for housing, which you can immediately move to, take a mortgage in a house under construction. This is also possible if you search and analyze the offers of banks.

DeltaCredit Bank has a "Mortgage Vacation" - this is a program where the first year or two monthly payments are cut in half, just enough to cover both rent and mortgage while the house is being built.

And when the house is rented out and there is no need to rent anything, this part of the budget will begin to go towards repaying the loan. But it must be borne in mind that no bank will give out buns for beautiful eyes. Usually, the rate of a loan with concessions is higher than that of a regular loan.

Mistake 3. Forget about moving

This point is generally thrown out of the head by many. But imagine that you are young, you have an interesting profession. You are offered a move, but there is one thing: a mortgage for 30 years. Or your family is growing, you need a bigger apartment, but you already have a valid mortgage for a two-bedroom apartment.

How to do

Why not wave to another city or to the north for high salaries, in order to rent a house there and give a raise on the mortgage payment? Why not try to sell an apartment on bail?

The mortgage does not bind to the place. A mortgage apartment, if desired, can be rented out and sold, if you agree on this with the bank. Yes, these are always additional difficulties, but if the plans have changed, all difficulties can be overcome.

And do not be afraid to take out a loan for real estate where you will live, choose an apartment with a margin of meters. By the way, few people think about it, but you can take a mortgage not only for an apartment, but also for a house.

Mistake 4. Forget about repairs

Buying an apartment when the developer barely managed to get a building permit is profitable. The price per square meter at the excavation stage is much lower than in finished housing. Especially if the apartment will be rented out in the building version - this is when you have an empty box in front of you and room for creativity. Only now you need to invest a large amount in this creativity.

Even if you buy a home on the secondary market, after the move you cannot do without repairs: somewhere you need to move the outlet, somewhere the wallpaper is disgusting. If you forget about it, then the housewarming may be delayed (or you will have to take out a loan for repairs).

How to do

There are three options:

• When you take out a mortgage, pay a lower down payment, but immediately put aside the "repair" money. Better to put them at interest.
• Save for repairs when paying off your mortgage. The same mortgage vacation we talked about can help.
• Look for a developer who immediately rents out a renovated apartment. You can at least live in it, that is, finish with a mortgage, and only then repair something.

Mistake 5. Do not create a reserve fund

Usually, if you make a larger initial payment, then the terms of the mortgage will be softer. It is logical that you want to give everything that you have acquired by back-breaking labor, but in the end you have to live from paycheck to paycheck.

How to do

Set aside a small amount that will cover the mandatory payments for at least two months, and best of all, for six months. This is insurance in case you suddenly lose your job or something else happens.

Mistake 6. Do not read the contract

Even if you have already discussed everything with the manager, even if the consultant answered a hundred of your questions, read and clarify everything that you do not understand. Even if you ask the obvious nonsense, just do it.

How to do

Read the agreement and all documents to which it refers (for example, the general conditions of bank loans). Make a summary of the main provisions: when to pay, what documents to update, in which companies to insure, where to call if there are problems.

Mistake 7. Forgetting the tax deduction

Are you aware of the tax deduction for mortgages? And for the purchase of an apartment, and interest on the mortgage. This deduction can be for a round amount - up to 650,000 rubles.

How to do

Collect certificates of income and payments, submit an application to the tax office (if you do not know how, then at your service there are many companies that will complete everything for you in 20 minutes), get money. By the way, if you are married or married, your other half can also receive a deduction. The spouse is entitled to compensation, even if he is not the owner of the home, and many people forget about this.

Mistake 8. Thinking that it will somehow pass by itself

Let's say there is a problem: you are late in your payment. It doesn't matter for whatever reason: the reminder didn't work, there was no mood, the money ran out. There is no point in burying your head in the sand and continuing to pay your mortgage as if nothing had happened. Even for one day of delay, the bank can issue a fine or charge penalties, and then it will result in round sums.

How to do

The ideal option is to get insured, but it is expensive (and if the insurance is good, it is very expensive). Regardless of whether you have insurance or not, in any incomprehensible situation, call the bank. Minor difficulties can be solved immediately, in case of major problems - to agree and even revise the terms of the mortgage. The main thing is not to disappear and to treat obligations responsibly.

If you understand that you are mentally ready for a mortgage, find out what conditions you can count on. Use the DeltaCredit online approval service: it will help you get a preliminary loan approval without a visit to the bank. Register, submit an application, get approval and upload the required documents - everything is fast and hassle-free.