2024-11-10 05:48:00
In anticipation of a growing mortgage market, more and more owners are interested in preparing their properties to sell them to those seeking bank loans with mortgage guarantees.
As far as he knew Infobaecurrently there are institutions that carry out up to 10 disbursements per day. Since Bank Mortgage reintroduced these loans last April, there are now 22 banks offering finance for property purchases, while fewer than 10 also offer options to expand, build or renovate.
However, not all properties meet the necessary requirements to be considered “suitable for mortgage credit”. From legal aspects to technical details, a series of conditions determine whether a house can be financed, which also represent a fundamental filter for banks when granting loans.
Daniel Brynof Zipcode and creator of Monitor Inmobiliario, he said 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 need to understand the criteria that properties must meet and what aspects to pay particular attention to.
For a property to be classified as “solvent” in the mortgage market, it is essential that it meets certain key requirements. The first is to have a clear and in order deed, which implies a title free from constraints, mortgages or legal conflicts, to guarantee that the seller is the legitimate owner.
In CABA, a used two-room apartment costs on average USD 122,963 and a three-room apartment costs on average USD 169,082 (Zonaprop)
«Similarly, the projects must be approved and updated, since the banks verify that the structure of the house is declared and corresponds to the one actually built. Furthermore, the house must be habitable and have basic services such as electricity, water and gas, essential factors to consider it safe,” he commented. Vanesa Ibarrafrom Salguero Properties.
Properties with encumbrances on the title, such as embargoes or unresolved disputes, are rejected due to the risk of loss they represent for the bank (Infobae illustrative image)Hundreds of properties are ineligible for credit due to problems in 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, prior mortgages or debts, the mortgage loan is rejected, as the property is
To guarantee a safe purchase without future inconveniences, it is essential that the buyer checks both the legal and technical aspects.
First, the title must be free of legal conflicts, such as liens or prior mortgages, to ensure a smooth transfer of ownership.
Additionally, banks also review the status of basic services. A property with serious plumbing problems or irregular electrical connections may be disqualified.
Vanesa Ibarra recommends checking that the property has no debts – neither the property nor the consortium – and that it has an adequate appraisal.
The plan update process costs approximately $29,000 and turnaround times may be extended, so it is recommended to have these ready along with other key documents, such as property and debt reports. Ibarra expanded: “This avoids inconveniences and speeds up credit approval, which can take up to 60 days on the market,” Ibarra emphasized.
Additionally, banks usually require a certificate of exemption from tax debts and expenses, as well as a domain report confirming the legitimacy of the property. For example, a home with a current unpaid mortgage would not be accepted until the title is clear of encumbrances.
In a market expected to grow in mortgage lending, homeowners looking to sell should prepare to meet banking requirements.
«For owners without authorizations, the solution is to regularize these aspects before putting the property up for sale with mortgage credit. This generally requires the intervention of a professional, such as an architect, to update and record the official plans,” explained Daniel Bryn.
Before a bank approves a property as eligible for credit, it is essential to carry out a thorough inspection to ensure that the home meets the necessary conditions.
Second Maximilian DrelichmannCEO of CheckHome, among the most important structural aspects are the absence of visible and hidden humidity, an adequate electrical system and a safe gas system.
A structural inspection of a home can identify problems not visible to the naked eye, such as carbon monoxide leaks or indoor humidity that require urgent repairs.
“The cost of these repairs can be significant, with estimated amounts of up to 150,000 pesos for moisture problems and $340,000 in the case of heating systems, depending on the condition of the property,” Drelichman said.
Carrying out this preventive check not only protects the buyer, but increases the likelihood of obtaining financing to facilitate the sale.
Maximiliano Drelichman suggests buyers invest in a professional inspection that includes assessing cracks and checking gas and electricity systems, as the bank may refuse credit if serious defects are found.
Experts point out that the initial costs of an inspection are minimal compared to any repairs or habitability issues that may arise later. “Eliminating cracks, moisture and gas problems facilitates the sale and improves the creditworthiness of the home,” concluded Drelichman.
Interview between Time.news Editor and Real Estate Expert Daniel Bryn
Time.news Editor: Thank you for joining us today, Daniel. With the mortgage market seeing significant growth lately, can you tell us what factors are influencing this surge in interest among homeowners looking to sell?
Daniel Bryn: Thank you for having me! The recent revival of mortgage options is indeed shaping the real estate landscape. Since the reintroduction of bank mortgages in April, we’ve seen 22 banks participating in the market, providing much-needed financing for home purchases. This has created a favorable environment for sellers, particularly those looking to attract buyers needing mortgage guarantees.
Time.news Editor: That’s fascinating! However, it seems that not all properties are suitable for mortgage lending. What specific requirements must a property meet to be eligible?
Daniel Bryn: Absolutely. For a property to be classified as “solvent” in the eyes of lenders, it needs three key things: Firstly, the title must be clear and free from any constraints such as liens, mortgages, or legal conflicts. This ensures that the seller is the legitimate owner and can transfer ownership smoothly. Secondly, projects must be up to date and approved, confirming that the structure aligns with what’s legally documented. Lastly, the home must be habitable, with basic services like electricity, water, and gas.
Time.news Editor: You mentioned that many properties are disqualified due to documentation issues. Could you elaborate on what common problems potential sellers face?
Daniel Bryn: Many properties are clocking in as ineligible for credit simply due to inadequate documentation. A frequent hurdle is the absence of a valid deed—the fundamental proof of ownership. Other issues include properties burdened with liens or unpaid debts which can dramatically decrease their market value. Additionally, if there are substantial structural issues, like significant plumbing or electric problems, lenders might consider the property too risky.
Time.news Editor: It sounds like sellers need to be proactive. What advice would you give homeowners to prepare their properties for a successful sale?
Daniel Bryn: Definitely, preparation is key. Sellers should ensure all documentation is correct and up to date—this might involve hiring professionals such as architects to regularize plans or get necessary approvals. Spending around $29,000 for an updated plan can be worthwhile since it might expedite the credit approval process, which could take up to 60 days. Clearing any debts and obtaining necessary certificates is also essential.
Time.news Editor: What role does the appraisal of a property play in this process?
Daniel Bryn: A proper appraisal is crucial as it provides a clear assessment of the property’s value. This directly influences the buyer’s ability to secure a mortgage. If a property is overvalued, it may fail to meet the bank’s lending criteria. Instead, a realistic appraisal coupled with a clear title can enhance a property’s eligibility for financing, making it more attractive to potential buyers.
Time.news Editor: With the market looking to grow further, how should both buyers and sellers navigate these changing dynamics?
Daniel Bryn: Both parties need to be well-informed about the current market trends and the specifics of mortgage lending. Sellers should focus on ensuring their properties meet basic banking requirements to facilitate a smoother sale. Buyers, on the other hand, must be diligent in understanding the properties they’re interested in, ensuring all necessary inspections and legal checks are completed to avoid complications later on.
Time.news Editor: Thank you, Daniel. Your insights provide valuable guidance for anyone looking to navigate today’s real estate market effectively.
Daniel Bryn: Thank you for having me! It’s an exciting time in the mortgage industry, and I hope that both buyers and sellers feel empowered to act confidently as the market continues to evolve.