What is the process for home loan approval? Why is the home loan approval not successful?

Recently, many young people have consulted about mortgages. The questions can be roughly divided into three categories: First, what is the process of mortgage approval? Second, what is the reason for the failure of mortgage approval? Third, how to divide the house with unpaid mortgage during divorce. Today, we will share the topics in this regard first!

Contents of this article

1. What is the process for home loan approval?

2. Why was the housing loan approval not successful?

3. How to divide a house with unpaid mortgage during divorce

What is the process for home loan approval?

1. Submit a loan application to the bank. Submit the original and copy of your ID (resident ID card, household register and other valid residence certificates). Non-locals are also required to provide their spouse's valid ID and copy. If the borrower and spouse are not in the same household register, they are also required to provide a marriage certificate and a deposit of 30% of the house price, 40% or more of the self-raised funds of the non-locals, and an income certificate issued by a work unit with the ability to repay the loan, etc.

2. Determine the loan amount and term. If you are a resident of this city, the maximum loan amount is 70% of the house price, and the maximum loan term is 20 years. For non-locals, the maximum loan amount is 60% of the house price, and not more than 300,000 yuan, and the maximum loan term is 10 years. Of course, this is a local policy, and there are different requirements for the loan term for provident fund loans and commercial loans.

3. Review by the lending bank. The lending bank reviews the materials and certificates provided by the borrower, mainly to examine whether the borrower is eligible for the loan, whether he meets the loan conditions, and whether he has sufficient ability to repay the principal and interest of the loan. It then determines the actual loan amount and notifies the borrower of the loan commitment, and then the contract can be signed.

4. Notarization of housing mortgage contract. After signing the contract, you need to go to the local notary office to notarize the housing mortgage contract. The notarization fee is borne by the loan bank. Then, take the notarized housing mortgage contract to the real estate registration department of the district or county where the purchased house is located to register the real estate mortgage, handle the insurance procedures for the purchased house, and wait for the loan to be released.

Why was the home loan approval not successful?

1. Homebuyers: If the information provided by the homebuyer is untrue or the homebuyer’s credit record is not good and the bank refuses to approve the loan, the homebuyer shall bear the liability for breach of contract.

2. Developers: If the developer sells houses that do not meet the sales conditions, that is, the developer has not obtained a pre-sale license or sells existing houses that do not meet the use conditions, the bank will not approve the loan if it finds this situation during the review. At this time, the buyer can ask the developer to return the down payment and deposit, and ask the developer to pay the corresponding interest losses.

3. Not the buyer and seller: If the government policy or bank regulations change and the loan that the buyer should have obtained cannot be realized, the buyer should negotiate with the developer. If the negotiation fails and there is no stipulation in the contract, the buyer can sue and prove that he is not at fault and is indeed unable to buy the house, and ask the developer to return the down payment and deposit.

How to divide a house with unpaid mortgage during divorce

If the mortgage is not fully repaid during the divorce, the property can be divided through negotiation between the two parties. If the negotiation fails, the property can be divided through litigation by the court: 1. The party who obtains the property shall compensate the other party for the repayment of the loan and the appreciation during the marriage. 2. The remaining unpaid loan shall be repaid by the party who obtains the property personally. Relevant regulations: The Marriage Law stipulates: Article 39: When a divorce occurs, the common property of the husband and wife shall be dealt with by agreement between the two parties; if no agreement is reached, the People's Court shall make a judgment based on the specific circumstances of the property and the principle of taking care of the children and the rights and interests of the woman. The Interpretation of the Marriage Law II stipulates: Article 20: If the two parties cannot reach an agreement on the value and ownership of the house in the common property of the husband and wife, the People's Court shall deal with it according to the following circumstances: (a) If both parties claim the ownership of the house and agree to obtain it through bidding, it shall be approved; (b) If one party claims the ownership of the house, the appraisal institution shall appraise the house according to the market price, and the party who obtains the ownership of the house shall give the other party corresponding compensation; (c) If neither party claims the ownership of the house, the house shall be auctioned according to the application of the parties and the proceeds shall be divided.