If you are going to make your first home purchase, it is perfectly understandable if there is much that feels overwhelming. Strange it would be otherwise, after all, it’s all about big decisions and a lot of money. In addition, you will come across concepts that may be completely new to you, such as loan promise, law enforcement and mortgage deed. And yes, what do they really mean? Here is a crib for you who are unsure.
Loan pledge – certificate that you can borrow money
Most people need to borrow money to be able to finance their home purchases. Before you go out and start looking for housing, it can therefore be good to find out how much you can borrow and what you can afford. You do this by applying for a loan promise from a bank. A loan promise is a kind of certificate that the bank will want to lend you money, and how much. When you apply for a loan promise, the bank makes an assessment of your repayment ability. The loan promise is thus based on what they think is reasonable that you can repay based on your financial situation. Therefore, in your application you must provide a variety of information, such as what you have for income and if you have any other loans.
A loan promise is never binding. This means that you can apply for several loan promises from different lenders and then choose the offer that suits you best. But this also applies to the bank, so if your finances deteriorate, the bank does not have to grant the loan even though they first gave you a loan promise.
Law speed – proof that you own the property
When you have purchased a house, you must register the ownership with the Lanmartet by applying for legal speed, a certificate of ownership. Your application must be submitted to the Land Survey together with an original transfer agreement. Depending on whether you have purchased or received the house, it may be a will, gift letter or purchase contract. The transfer agreement is then sent back to you as soon as the documents have been reviewed.
You pay the cost of the team pass to Lanmartet when you submit your application. It is a tax called stamp duty, and it stands at 1.5% of the purchase price. In addition, there is a charge of $ 375. You do not need to apply for legal deed when you buy a condominium because it is the condominium association that owns the property.
Mortgages – used as collateral for the loan
The bank requires that you provide a mortgage as collateral for the loan when you take out a mortgage. This is proof that there is a mortgage on the property and means that your house is pledged with the bank. If you do not pay the loan rate as agreed, the bank may force you to sell the house to get the loan back.
Mortgages can only be issued by the Land Survey, they are responsible for all Swedish mortgage bonds. The cost for this is 2% of the amount you want to mortgage, as well as a fee of $ 375. If you buy a house that already has a mortgage, you can take it over, as they are tied to the property regardless of who owns it. This means that you only need to apply for a mortgage on the difference between your loan amount and the existing mortgages. If you buy a condominium, you do not need to apply for a mortgage, instead a pledge of the condominium is made.