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Real estate market recovery: What should a home be like to qualify for loans? - Infobae
Source:
www.infobae.com
November 10, 2024
Banks' requirements for mortgage lines. What the experts say
By Jose Luis Cieri
Having a valid title, a debt-free ownership report and a correct appraisal are key to the property being eligible for credit (Illustrative Image Infobae)
With the expectation of a booming mortgage market, more and more property owners are interested in preparing their properties for sale to those who turn to bank loans with mortgage guarantees.
According to Infobae , there are currently entities that make up to 10 disbursements per day . Since the Mortgage Bank reintroduced these loans last April, there are already 22 banks that offer financing for the purchase of properties, while less than 10 also offer options for expanding, building or refurbishing.
However, not all properties meet the requirements to be considered “appropriate for mortgage loans.” From legal aspects to technical details, a series of conditions determine whether a property can be financed, which also represents a crucial filter for banks when granting loans.
Daniel Bryn , from Zipcode and creator of Monitor Inmobiliario, told Infobae that “the credit rating has become an added value in a market that is beginning to show signs of recovery in demand for home purchases.”
To facilitate this approval, both buyers and sellers must understand the criteria that properties must meet and what aspects require special attention.
“The plans must also be approved and updated, as banks verify that the structure of the house is declared and matches what was actually built. In addition, the house must be habitable and have basic services such as electricity, water and gas, essential factors to consider it safe,” said Vanesa Ibarra , from Salguero Properties.
Properties with liens on the title, such as liens or unresolved disputes, are rejected due to the risk of loss they represent for the bank (Illustrative Image Infobae)
“Furthermore, if the property has liens, previous mortgages or debts, the mortgage loan is rejected, since the property is compromised. Homes acquired by adverse possession are also usually rejected due to a lack of certainty about ownership,” the specialist stressed.
To ensure a safe purchase without future problems, it is essential that the buyer checks both the legal and technical aspects.
First, the title must be free of legal disputes, such as prior liens or mortgages, to ensure a smooth transfer of ownership.
Banks also check the state of basic services. A property with serious plumbing problems or irregular electrical connections could be disqualified.
If everything is in order, the mortgage loan can be approved and the disbursement to buy the home can be made in just 45 days (Illustrative Image Infobae)
Vanesa Ibarra recommended verifying that the property has no debts - neither the property nor the consortium - and that it has an adequate appraisal.
The process of updating the plan has an approximate cost of $29,000, and delivery times can be extended, so it is recommended to have them ready along with other key documents, such as property and debt reports. Ibarra added: “This avoids inconveniences and speeds up credit approval, which can take up to 60 days in the market,” Ibarra said.
In addition, banks usually require a certificate of freedom from taxes and expenses, as well as a title report confirming the legitimacy of the property. For example, a property with an outstanding mortgage would not be accepted until the title is clear of liens.
“For those owners who lack permits, the solution involves regularizing these aspects before putting the property up for sale under a mortgage loan. This generally requires the intervention of a professional, such as an architect, to update and register the official plans,” Daniel Bryn added.
Last September, credit operations in CABA and the province of Buenos Aires doubled in inter-monthly comparison: between both districts, almost 1,600 operations were carried out with bank leverage, a figure that had not been exceeded for more than 5 years (Illustrative Image Infobae)
The check-up, key
Before a bank approves a property as eligible for credit, it is essential to conduct a thorough inspection to ensure that the property meets the necessary conditions.
According to Maximiliano Drelichman , CEO of CheckHome, among the most important structural aspects are the absence of visible and hidden humidity, an adequate electrical system, and a safe gas installation.
“These elements, combined with good plumbing, heating and cooling, are key to avoiding costly repairs and risks for future residents,” Drelichman said.
Checking the electrical installations of a home or condominium can also help a property to be eligible for a mortgage loan.
A structural inspection of a home can identify problems that are not visible to the naked eye, such as carbon monoxide leaks or internal humidity that require urgent repairs.
“The cost of these repairs can be significant, with estimated amounts of up to $150,000 pesos for humidity issues and $340,000 for heating systems, depending on the condition of the property,” said Drelichman.
Carrying out this preventive check not only protects the buyer, but also increases the probability of obtaining financing to facilitate the sale.
A review of the home and facilities also prevents setbacks
For buyers, Maximiliano Drelichman suggests investing in a professional inspection that includes an assessment of cracks and a review of the gas and electrical systems, since the bank could reject the loan if it detects serious flaws.
Experts point out that the initial costs of an inspection are minimal compared to potential repairs or habitability problems that could arise later. “Eliminating cracks, moisture and gas problems makes the home easier to sell and improves its creditworthiness,” concluded Drelichman.
www.buysellba.com
Source:
Recuperación del mercado inmobiliario: ¿cómo debe ser una vivienda para calificar como apta para créditos?
Las exigencias de los bancos para las líneas hipotecarias. Qué dicen los especialistas
www.infobae.com
November 10, 2024
Banks' requirements for mortgage lines. What the experts say
By Jose Luis Cieri
Having a valid title, a debt-free ownership report and a correct appraisal are key to the property being eligible for credit (Illustrative Image Infobae)
With the expectation of a booming mortgage market, more and more property owners are interested in preparing their properties for sale to those who turn to bank loans with mortgage guarantees.
According to Infobae , there are currently entities that make up to 10 disbursements per day . Since the Mortgage Bank reintroduced these loans last April, there are already 22 banks that offer financing for the purchase of properties, while less than 10 also offer options for expanding, building or refurbishing.
However, not all properties meet the requirements to be considered “appropriate for mortgage loans.” From legal aspects to technical details, a series of conditions determine whether a property can be financed, which also represents a crucial filter for banks when granting loans.
Daniel Bryn , from Zipcode and creator of Monitor Inmobiliario, told Infobae that “the credit rating has become an added value in a market that is beginning to show signs of recovery in demand for home purchases.”
To facilitate this approval, both buyers and sellers must understand the criteria that properties must meet and what aspects require special attention.
Main requirements
For a property to be classified as “credit-eligible” in the mortgage market, it is essential that it meets certain key requirements. The first is to have a clear and up-to-date deed, which implies a title free of liens, mortgages or legal conflicts, to guarantee that the seller is the legitimate owner.“The plans must also be approved and updated, as banks verify that the structure of the house is declared and matches what was actually built. In addition, the house must be habitable and have basic services such as electricity, water and gas, essential factors to consider it safe,” said Vanesa Ibarra , from Salguero Properties.
Properties with liens on the title, such as liens or unresolved disputes, are rejected due to the risk of loss they represent for the bank (Illustrative Image Infobae)
Why do some properties not qualify?
Hundreds of properties do not qualify for loans due to problems with their documentation or structural condition. A common cause is the lack of a valid deed, an essential requirement for the bank to certify the ownership and security of the property.“Furthermore, if the property has liens, previous mortgages or debts, the mortgage loan is rejected, since the property is compromised. Homes acquired by adverse possession are also usually rejected due to a lack of certainty about ownership,” the specialist stressed.
To ensure a safe purchase without future problems, it is essential that the buyer checks both the legal and technical aspects.
First, the title must be free of legal disputes, such as prior liens or mortgages, to ensure a smooth transfer of ownership.
Banks also check the state of basic services. A property with serious plumbing problems or irregular electrical connections could be disqualified.
If everything is in order, the mortgage loan can be approved and the disbursement to buy the home can be made in just 45 days (Illustrative Image Infobae)
Vanesa Ibarra recommended verifying that the property has no debts - neither the property nor the consortium - and that it has an adequate appraisal.
The process of updating the plan has an approximate cost of $29,000, and delivery times can be extended, so it is recommended to have them ready along with other key documents, such as property and debt reports. Ibarra added: “This avoids inconveniences and speeds up credit approval, which can take up to 60 days in the market,” Ibarra said.
In addition, banks usually require a certificate of freedom from taxes and expenses, as well as a title report confirming the legitimacy of the property. For example, a property with an outstanding mortgage would not be accepted until the title is clear of liens.
Recommendations for owners
In a market that anticipates growth in mortgage lending, homeowners looking to sell must prepare to meet banking requirements.“For those owners who lack permits, the solution involves regularizing these aspects before putting the property up for sale under a mortgage loan. This generally requires the intervention of a professional, such as an architect, to update and register the official plans,” Daniel Bryn added.
Last September, credit operations in CABA and the province of Buenos Aires doubled in inter-monthly comparison: between both districts, almost 1,600 operations were carried out with bank leverage, a figure that had not been exceeded for more than 5 years (Illustrative Image Infobae)
The check-up, key
Before a bank approves a property as eligible for credit, it is essential to conduct a thorough inspection to ensure that the property meets the necessary conditions.
According to Maximiliano Drelichman , CEO of CheckHome, among the most important structural aspects are the absence of visible and hidden humidity, an adequate electrical system, and a safe gas installation.
“These elements, combined with good plumbing, heating and cooling, are key to avoiding costly repairs and risks for future residents,” Drelichman said.
Checking the electrical installations of a home or condominium can also help a property to be eligible for a mortgage loan.
A structural inspection of a home can identify problems that are not visible to the naked eye, such as carbon monoxide leaks or internal humidity that require urgent repairs.
“The cost of these repairs can be significant, with estimated amounts of up to $150,000 pesos for humidity issues and $340,000 for heating systems, depending on the condition of the property,” said Drelichman.
Carrying out this preventive check not only protects the buyer, but also increases the probability of obtaining financing to facilitate the sale.
A review of the home and facilities also prevents setbacks
For buyers, Maximiliano Drelichman suggests investing in a professional inspection that includes an assessment of cracks and a review of the gas and electrical systems, since the bank could reject the loan if it detects serious flaws.
Experts point out that the initial costs of an inspection are minimal compared to potential repairs or habitability problems that could arise later. “Eliminating cracks, moisture and gas problems makes the home easier to sell and improves its creditworthiness,” concluded Drelichman.
www.buysellba.com
