Credits secured by real estate in our country have gained great popularity. Apartments are more often a mortgage property. Banks willingly approve such transactions, because their risks are significantly reduced, which allows its customers more favorable conditions.
However, this type of lending has, both the advantages and disadvantages, which should be considered from both the Bank and the borrower.
The benefits for the borrower are a lot, here are the main of them:
As you can see the benefits for the borrower have an extensive list, which indicates the profitability of this type of lending.
In the case of a loan on the security of the apartment, the cost of the loan is calculated on the basis of the estimated value of the property, which can later be the object of sale at the auction.
In other words, the guarantee provides the bank to reduce risks to zero, since if you cannot fulfill the obligations under the loan agreement, the bank will simply sell your housing, and the debts and interest on the loan will cover the money and interest.
As you can see, all the disadvantages of the lender flow from the sale of housing in an unfavorable flow. Paper red tier, temporary wires can tighten the process of implementing an apartment.
And again we will talk about selling an apartment, but here we will look at the risks that may arise from the lender:
The advantages of the loan secured by the apartment is significantly more than minuses. Risks exists with any lending. It is possible to reduce them only to the question of the loan responsibly and with the mind.