May 25, 2024

What You Need to Know About Housing Loan

If you want to buy a house but don’t have enough money, then mortgage loans can help you. In order to buy a house with a housing loan, you need to give the amount specified as a down payment in cash. So what is a home loan? How is a housing loan calculated? What are the conditions for using a housing loan? Now we will talk about all the details about the housing loan…

What is a Housing Loan?

The most important point to know about the housing loan, which is the type of loan that provides the financial support you need for the housing purchase, is that the housing loan will not cover the entire value of the house. The home loan you would use in the past years could meet up to 80% of the value of the house you wanted to buy. After this situation, which was updated with a rate of 90% for houses up to 500,000 TL in March 2020, the value and class of the house determines what percentage of the house price you can get as a loan.

Another point that those who will buy a house using a housing loan should know is that banks keep the house mortgaged until your debt is over, in case there is a problem in the repayment of the loan they give. The mortgage on your house is automatically removed when your debt is over.

What are the Housing Loan Terms?

Individuals who want to use a housing loan must meet certain conditions. The main requirements for a housing loan are as follows;

  • The person who will take out a housing loan must be at least 18 years old. The upper limit is set at 70 years old.
  • You need to present the documents required by the bank in order to take out a mortgage loan. These documents are decisive in obtaining detailed information about the house and you and responding to your loan request.
  • Your credit score plays an important role in the positive-negative response of the home loan request. When your credit score is low, your request may receive a negative response.
  • Your income is expected to be enough to pay off the mortgage monthly, deducting routine expenses.
  • It is also among the conditions sought to have the residence of the house you apply for a loan. If you want to apply for a housing loan for a house whose construction has not been completed, in this case, it is necessary to present a construction servitude.
  • The appraisal report prepared after your application is directly related to the bank’s approval of the loan. The details included in this report determine whether the bank will approve your housing loan application or not.

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