How to get a mortgage in another city - features of obtaining, procedure

The scheme, in which you can take out a mortgage in one city and buy an apartment in another, is legal, but not practiced by many banks, mainly those with a developed branch network. Among them are Sberbank, Rosselkhozbank, VTB, Alfa-Bank and others.

Situations in which there is a need to obtain a mortgage in one city and purchase a home in another are associated with relocation, the desire to be closer to work, place of study, or receive rental income.

How to get a mortgage in another city, what conditions can you count on, what requirements must housing meet, under what circumstances will the bank definitely refuse, what additional documents will be needed and are there any pitfalls in this type of lending - you will get answers to these questions by reading article to the end.

Specifics of obtaining a mortgage in another city

The situation when a loan is issued in one city and housing is purchased in another is not entirely standard, but it is not hopeless either. Banks refer to this type of loan program as “intercity mortgage.”

Citizens of the Russian Federation have the right to buy apartments in new buildings or from secondary real estate stock, and apply to credit organizations at the place of registration or work. If a housing loan is issued at the place of work, temporary registration is the default condition.

The first step in getting a long-distance mortgage is to choose a bank that operates in this format. The further scheme is simple:

choice of housing;
obtaining a positive verdict;
registration of a mortgage.

The presence of a bank branch in the region of registration (registration) of the client is of key importance . Otherwise, you will need to look for other options. Requirements for the mortgaged property, co-borrowers, and guarantors are clarified with the selected bank.

It would also be useful to find out the following fragments:

the procedure for conducting the transaction and its duration;
the ability to submit an application remotely;
competence of actions of proxies;
admissibility of transmitting documents by e-mail or courier mail.

From the date of receiving a positive decision from the bank to the issuance of a cash loan, it can take from one to several months.

If the mortgage application and home purchase take place in different cities, approval can be carried out remotely. Personal presence is required during the signing of documents.

If this does not contradict the conditions of the financial organization, close people are allowed to act by proxy. The borrower does not need to constantly visit the bank. Even housing can be chosen from a distance, but this can be very risky.

The branch of the selected bank at the place of work studies the identity of the borrower and his solvency. The transaction is completed by a branch located in the city where the housing is purchased.

If events develop well, all that remains is to fill out an application form, collect a package of documents and wait for the bank’s decision.

Mortgage at the place of registration, work in another region

The following tools will help you obtain a mortgage if you have no confirmed income at your place of registration:

significant down payment;
presence of a guarantor or co-borrower;
the presence of other real estate that can be used as collateral.

But not everyone has such opportunities. Even confirmed income in another city can alert the bank, so there is no guarantee that your application will be approved.

If your source of income is not where you are registered, you can try to apply for temporary registration at your place of work.

However, if we are talking about Moscow or St. Petersburg, this will not be easy. They will sell you a fake piece of paper at every step, but banks check everything inside and out when considering the application, so such a bluff will be exposed immediately. Even if you have a real temporary registration, the loan will only be issued for the duration of its validity, and this may not be enough.

What problems might borrowers encounter?

Branches and departments of banks work according to a verified scheme, interacting with each other and with realtors. Still, this event is considered risky.

Because of this, a potential borrower may experience the following situations:

Offering a higher interest rate - bankers may make concessions if life and health insurance policies are issued.
Refusal to work under a power of attorney - without compromise, you will have to agree to the bank’s demands.
An increase in the price of housing due to payment for the services of a realtor - it should be borne in mind that the mediation of a specialist is assessed at high rates, because transactions are classified as complex. The experience and knowledge of the realtor market will significantly reduce the search for housing.
Delay in transferring an approved application between departments - the process can take up to 1 month, it is advisable to monitor all stages yourself.
Confusion regarding payments - to avoid misunderstandings, save receipts and receipts, connect to online banking, and track banking transactions every time.

All these problems arise due to the territorial remoteness of the subject of the mortgage and the borrower . A financial institution needs much more time to study information about a client, travel to the location of a residential property and carry out its legal verification, and draw up a purchase and sale agreement. Most certificates and extracts have a limited shelf life: this factor must also be taken into account.

If the bank has a developed branch network and an established process of work in its divisions, the identified disadvantages can be minimized.

To avoid falling into a trap, you need a very precise plan.

In theory, it is quite possible to take out a mortgage in another city. But this task has a lot of nuances that can lead to serious difficulties at all stages of the transaction. If you are planning to get a mortgage in St. Petersburg or the Leningrad region, but do not have registration in the region, do not rush to make a temporary registration according to the advertisement on the pole. Not only will you not solve anything, but you will also waste your money. A more economical and sensible way is to contact mortgage brokers in. Many people have already become owners of their own homes thanks to the help of Mortgage. The specialists of this company will take on all the burdens of mortgage paperwork:

will select the optimal lending scheme taking into account your capabilities on favorable terms;
will process and send applications to banks;
will help you get a mortgage without extra costs.

If you are planning to buy an apartment in another city with a mortgage, contact Mortgage - it’s reliable, convenient and profitable!

Memo: how to get a 100% positive decision

Before you buy an apartment with a mortgage in another city, work through all possible options. Lenders are wary of such situations. After all, there is a high probability that the borrower will not be able to pay the mortgage for the entire term.

Stock up on all kinds of certificates, especially those that can confirm your solvency - about the presence of deposits, additional property, etc.

Inform the bank about a less dangerous purpose for purchasing real estate in another city - for example, to rent out the property, for children or other relatives.

The bank will make a positive decision if all parameters are met:

favorable credit history;
large down payment;
confirmation of receiving a consistently high salary.

If you purchase an apartment in a new building, the developer must be accredited by the bank where the mortgage is issued. This nuance should be clarified in advance.

To carry out the transaction, the seller must open an account at the location of the mortgaged property . After paying the first installment, the remaining amount of the loan will be transferred to this account.

It is advisable to first submit an application and wait for the bank’s response to authorize the maximum loan amount. And then start looking for suitable housing.

When a move is imminent

Is it possible to take out a mortgage loan in another city without having a residence permit or work there? If your income level, credit history and other parameters satisfy the bank, the loan will most likely be approved. But if you're planning a move, this may make your lender wary. Every banker understands that relocation is associated with a number of risks:

job search;
associated costs;
increased health vulnerability, etc.

Therefore, some borrowers are cunning and do not inform the bank about the planned move. If there are no problems with payment, the bank may not be interested in your affairs. But at the first delay, the creditor, having learned about your move, may demand payment of the entire amount of the debt. And this could mean the loss of mortgaged real estate. Therefore, before applying for such a loan, calculate the risks and weigh your decision.

If you buy an apartment with a mortgage not for moving, but for a child or another relative, you will have fewer difficulties with the bank.

Banks lending for the purchase of housing outside the region of registration

If you are interested in which bank you can take out a mortgage in another city without registration, you should know that not all financial organizations offer such a service. The risks of lending in this case are much higher.

Sberbank: features of lending at a distance

Sberbank issues housing loans in other regions more often than other banks. This is facilitated by an extensive network of branches, a modern communications system, and a well-coordinated mechanism for remote customer service.

As a rule, a mortgage is issued in the city where the bank operates. This is necessary for the legal purity of the transaction.

The main requirement of Sberbank is citizenship of the Russian Federation and registration in any of the regions . Therefore, the documents must include a passport with a registration mark or a document confirming temporary registration.

Specifics of obtaining a remote mortgage from VTB

To get a loan to buy a home in another area, the client must:

write an application at the regional office of VTB Bank, submit a package of documents, including those confirming solvency;
wait for the application to be approved;
open an account;
decide on the option of placing the first contribution - a separate deposit or on an account;
issue a power of attorney to the bank, which will allow you to manage the amount of the down payment in order to transfer funds to the account of the seller of the property;
choose a method of purchasing a home and decide on the transaction scheme;
take out an insurance policy;
close a mortgage transaction - go to bank branches to sign documents.

When applying for a mortgage at VTB in 2021, you will expect additional costs:

commission for non-cash transfer of funds between branches - approximately 1% of the transaction amount;
drafting a contract - from 2 to 5 thousand rubles;
organizing the purchase of housing - from 5 to 15 thousand rubles;
payment for appraiser services;
insurance;
notarization of documents.

Loan conditions in different banks

Many top banks offer mortgages for the purchase of an apartment outside your place of registration and residence:

Sberbank;
VTB 24;
Tinkoff;
Raiffeisen;
Uralsib;
Deltacredit.

If the bank has branches in both cities, a potential borrower can count on issuing a mortgage. Often clients choose Sberbank or VTB24, since these credit institutions have the maximum number of branches in all corners of Russia. Standard bank requirements for potential borrowers:

citizen of the Russian Federation. Being a tax resident with foreign citizenship is not enough to obtain a mortgage for non-resident housing;
age limits: no less than 21 years at the time of loan issuance and no more than 75 years at the time of repayment of the mortgage;
work experience of at least six months in one company at the time of submitting documents;
solvency - official salary and 2-NDFL certificate or the ability to confirm your financial solvency using a bank form;
positive credit history - if there were late payments on previous loans, it will be much more difficult to get a loan.

Terms of lending for non-resident real estate:

interest rate from 10%;
down payment from 20%;
you can buy secondary housing or a new building;
loan term up to 30 years.

Purchasing out-of-town housing does not exclude the opportunity to take advantage of government programs: mortgages at 6% for families with two or more children, mortgage repayment with maternity capital, military mortgages. It is important that the selected bank is accredited by the state to participate in the relevant state program.

The chances of getting a loan increase in the following cases:

the borrower is a salary client of the bank. This may entitle you to a reduction in the interest rate;
a significant down payment of 30-50% of the cost of housing;
the presence of a reliable guarantor at the place where the mortgage is issued;
the ability to provide existing real estate as collateral.

Taking out a loan to purchase real estate in another city is not easy: due to the fact that different credit managers are involved in issuing and processing the loan, it is not obvious which of them will receive a bonus for successful work with a new client. Bank employees are in no hurry to contact buyers of out-of-town apartments. In addition, if the client stops paying, it will be more difficult for the bank to get their money back. Therefore, bankers check buyers of out-of-town real estate more carefully.

How to apply for a mortgage in another city

The Treaty is the most important invention in human history. It allows you to put on paper all the reasons why the parties do not trust each other. The loan agreement is perhaps the most important document in the process of obtaining a remote mortgage.

But before you apply for a mortgage on an apartment in another city, you have to collect a “weighty” package of documents, which includes:

identity document - passport;
notification to the bank about receiving a loan;
marriage registration certificate;
consent of the second spouse to purchase housing, certified by a notary, and transferring it as collateral;
application for opening an account or agreement for opening a deposit for the first payment;
copies of passports of guarantors.

You should also take care of preparing documents for the property . Depending on the characteristics of the subject of the mortgage, the list of documents may change. The customer service manager of the bank you decide to contact will help you sort out the documents.

If housing is purchased with a mortgage on the primary market, you will need to first find out from the developer’s company whether they have a representative office in the city where the mortgage is received. If yes, then the lending process is greatly simplified.

The loan agreement and transaction documents are signed in the city of residence of the borrower . After this, the developer sends documents for registration to the region where the property is located. There is no need to go there yourself.

If the developer does not have representation, you can arrange the deal differently. You will need to check with the seller in advance about the possibility of concluding a purchase and sale transaction at a bank office in another city. If this option is approved, the agreement is sent for signing by email to the bank branch at the borrower’s place of residence.

Afterwards, the purchase agreement and loan agreement are sent to the developer for registration, and the borrower transfers the down payment and the loan received to the company’s account.

Lawyer's answers to frequently asked questions

My husband and I are planning to buy an apartment in another city in our own name, but our children will live in it. Traveling alone with your spouse is very costly financially. Can one of us go there to complete the transaction or do we both have to be present?

It is not necessary to travel together. One of the spouses can go to complete the transaction, but it will be necessary to obtain a notarized consent of the second spouse to purchase the apartment.

Hello! My husband and I own a 3-room apartment; our children only have registration in it. Can we buy another apartment in another city with a mortgage and invest maternal capital in it? Or will the pension fund refuse us? The second child is now 1.2 years old.

The purchase of an apartment using maternity capital funds is not limited to the city in which the certificate was issued. The only restriction is that the apartment must be purchased on the territory of the Russian Federation. If you buy an apartment with a mortgage, then the age of the child does not matter.

I want to buy an apartment with a mortgage in another city, but due to work I don’t have the opportunity to travel often, at most I can go once. Is it possible to give such powers to a relative who lives there and will he be able to not only choose an apartment, but also sign a purchase and sale agreement on my behalf?

Yes, you can issue a notarized power of attorney for your relative. He will be able to perform all actions that will be specified in the power of attorney. Be careful when compiling it. You will have to perform actions not specified in the power of attorney personally.

Please tell me, if I buy an apartment in another city with a mortgage, then which city should I apply to the Registry of which city to register ownership, at the place where I bought the apartment or at my place of residence?

The transaction is registered in the Rosreestr of the city where you will purchase the apartment. To do this, you will need to be there in person or issue a power of attorney for your representative. You can also check with your creditor bank about the possibility of using the electronic transaction registration service. This will give you the opportunity not to waste time traveling to another city and send documents for registration through the bank electronically.

I am planning to buy an apartment for my daughter in the city where she is studying. But there are not enough own funds and therefore you will have to use a mortgage. I have an unpaid consumer loan. I pay regularly and without delays. Can the bank refuse me a mortgage given that I have an outstanding loan?

When considering your application, the bank will definitely check your credit history. If your credit discipline and income allow you to make mortgage payments and pay off an existing loan, then the likelihood of getting a mortgage approval is high.

How to Avoid Rejection and Increase Your Chances of Getting a Mortgage Loan

A potential borrower has several options to increase their chances of getting a mortgage.

Contact a large financial and credit organization with branches in many cities of Russia. Even if the applicant wants to take out a mortgage in a place other than where he lives or works, the chance of getting approval for it will remain high. IT technologies allow bank branches to communicate with each other, and a single database allows one to find information about the client of any branch of a financial credit organization.
Contact a bank that works with Russians remotely. Banks like Tinkoff have practically no offices, and for them the question in which locality the borrower plans to buy real estate does not matter.
Taking out a mortgage on a finished home: when purchasing it, the borrower, by law, must immediately register ownership of it. Since this housing has already been rebuilt, the borrower registers it as collateral. In case of non-payment of the debt, the housing will go to the bank. When taking out a mortgage on housing under construction under a sales and purchase agreement (SSA), issued to a borrower without registration, the bank risks losing money and not receiving collateral in return.
Provide the bank with a rental agreement for an apartment in the region where you plan to apply for a mortgage (if the owner of the rented property refuses temporary registration).
Provide the financial institution with a copy of the agreement on the applicant’s transfer to a new place of work in the region where the bank operates.
Find co-borrowers or guarantors and note this fact in the applicant’s application form. Co-borrowers and guarantors are one of the forms of securing a mortgage loan. The presence of co-borrowers who bear joint liability with the borrower is also proof of the financial solvency of the bank’s loan counterparties.
Meet the other requirements of the bank: have sufficient and documented income to obtain a mortgage, have assets (real estate, car, deposit accounts).
Apply for a mortgage in the bank through which the salary is transferred or in which the applicant previously opened an account for a large amount. This will indicate the financial solvency and stability of the applicant’s income.

Look at the same topic: How to apply online for a mortgage at VTB 24 Bank?

Mortgage in a city where the borrower is not registered and does not work

Most often, this option for obtaining a mortgage is relevant for people living in one region and purchasing an apartment in another. For example, for accommodation of children studying in this area.

Example: a married couple is registered and works in Novorossiysk, and is applying for a mortgage to buy an apartment in Moscow, where their child is studying.

In such a situation, it is advisable to submit an application to a bank branch located in the city of residence of the borrower. After the request is approved, real estate documents can be submitted to the office, which is located in the city where the property is being purchased. You can also provide documentation in your region of residence, and bank employees will redirect them to the desired branch.

Registration of the mortgage must be made in the city where the property is purchased. To conclude a transaction, you will have to go to another locality or draw up a notarized power of attorney for a third party to perform these actions.