There are differences between commercial loans and provident fund loans in terms of nature, interest rates, amounts, processes, etc. The details are as follows:
1. Nature: Provident fund loans are policy-based loans that are not for profit. loans, while commercial loans are for profit-making purposes.
2. Interest rate: The interest rate of provident fund loans is much lower than the interest rate of commercial loans, and it is usually a relatively preferential interest rate.
3. Amount: Provident fund loans have obvious loan limit limits, while commercial loans have no regulations on the maximum amount of a single loan.
4. Process: The process of commercial loans is relatively simple. After applying for a commercial loan from the bank, the loan will be issued quickly. However, the process of provident fund loans is complicated, and it takes a long time from application to loan issuance.
The process of commercial loan
The first step: signing the contract to pay taxes
Signing the contract to pay taxes is the first step in the process of buying a house with a loan. Signing a contract mainly means that the home buyer needs to purchase a house and sign a "pre-sale contract" and "sales contract" with the developer; then pay the down payment according to the developer's specific requirements; and each of the developer and the developer pay stamp duty at an amount of 0.5 of the house price.
Step 2: Submit loan application
The most tedious and important step in the loan house purchase process is to submit the application. Different from housing provident fund loans to buy a house, commercial loans to buy a house require you to fill in and submit relevant information in accordance with regulations.
1. Fill in the application materials:
Including "Personal Housing Loan Application Form", "Personal Housing Loan Borrowing Contract", "Loan House Ownership Certificate Collection Contract", and Letter of Authorization ,, letter of commitment, etc.
2. Submit application materials:
(1) Identity cards, household registers, temporary residence permits, marriage certificates, academic certificates and other relevant certificates of the applicant and spouse.
(2) Original house purchase agreement.
(3) Documents proving the applicant’s family income and relevant assets, including salary stubs, personal income tax returns, income certificates issued by the unit, bank deposit certificates, etc.
In the process of understanding how to buy a house with a loan, you will find that the process of buying a house with a housing provident fund loan is the same. After completing the above-mentioned loan procedures for buying a house, the application is considered completed, and then you have to wait for bank approval.
Step 3: Bank review
The bank will review the lender's credit standing, loan amount, loan term, etc. based on the information provided by the lender. This step of the loan house purchase procedure is led by the bank and is the key to the success of the loan application.
Step 4: Sign a loan-related contract
After approval, the bank will sign a series of contract documents with the lender. Most people think that after signing the contract, the process of buying a house with a loan is over. Of course, this is only the completion of most of the procedures for buying a house with a loan. There is still one more step, which is monthly repayment.
Step 5: The borrower makes monthly repayments
The last step in the loan house purchase procedure is to repay the loan. The entire process of buying a house with a loan is not truly over until the loan is repaid in full.