Nowadays, many friends will consider applying for loans. Commercial loans are a very common method. If you want to apply for a commercial loan, you must first understand the specific process. Nowadays, many young people House purchases are all made through commercial loans. So what does a business loan mean? What is the process for buying a house with a commercial loan?
Nowadays, many friends will consider applying for loans. Commercial loans are a very common method. If you want to apply for a commercial loan, you must first understand the specific process. Nowadays, many young people House purchases are all made through commercial loans. So what does a business loan mean? What is the process for buying a house with a commercial loan? Let’s learn about the relevant knowledge below.
What does commercial loan mean?
Commercial loan, also known as personal housing loan, is a commercial bank and housing savings bank approved by the People's Bank of China. It provides loans for urban residents to purchase ordinary houses. Implement legal loan interest rates.
Many commercial banks in Beijing have such business, such as China Construction Bank and Agricultural Bank of China. The procedures for applying for a loan are basically the same. Commercial loans are loans used to supplement the liquidity of industrial and commercial enterprises. They are usually short-term loans. The general term is about 9 months to one year, but there are also a small number of medium and long-term loans. Such loans are the main component of commercial bank loans, generally accounting for more than one-third of total loans.
What is the process of buying a house with a commercial loan?
When you can apply for a mortgage loan to buy a house with a commercial loan, you should further confirm whether the property developed and constructed by the developer is supported by the bank to ensure the security of the mortgage loan. Successfully obtained. After confirming that the property you choose is supported by a bank mortgage, you should learn from the bank or the bank-designated law firm about the bank's regulations on mortgage loan support for home buyers.
1. Prepare relevant legal documents and fill out the " Mortgage Loan Application Form". The bank receives the legal documents related to the mortgage application submitted by the home buyer. After reviewing and confirming that the home buyer meets the conditions for the mortgage loan, the bank will issue a loan approval notice or a mortgage loan commitment letter to the home buyer. Home buyers can sign a "Commercial Housing Pre-sale and Sales Contract" with the developer or its agent.
2. After signing the house purchase contract and obtaining the proof of payment of the house payment, sign the "Building Mortgage Loan Contract" with the developer and the bank with the relevant legal documents specified by the bank to specify the loan amount, term, and Interest rates, repayment methods and other rights and obligations.
3. For off-plan properties, mortgage registration changes should be processed after completion. Under normal circumstances, because the mortgage loan period is relatively long, banks require home buyers to apply for life and property insurance in order to prevent loan risks. When a home buyer purchases insurance, the bank should be listed as the beneficiary. The insurance must not be interrupted during the loan performance period, and the insurance amount must not be less than the total value of the mortgage. The insurance policy is maintained by the bank until the loan principal and interest are repaid.
4. After signing the "Building Mortgage Loan Contract", according to the contract, open a special repayment account at a financial institution designated by the bank, and sign a letter of authorization authorizing the institution to pay the bank from the account. Loan principal, interest and arrears associated with the mortgage loan contract. The bank confirms that the home buyer meets the mortgage loan conditions and fulfills the obligations stipulated in the "Building Mortgage Loan Contract".
If you want to apply for a commercial loan, it is recommended that you pay attention to the specific details, especially choosing the right bank, preparing relevant information in advance, and understanding the application process. The above is an introduction to what a commercial loan means and what the process of buying a house with a commercial loan is. Let’s learn about the specific loan details when buying a house.