Inevitably in life, there will be emergencies, once they need money in unexpected circumstances but can not get enough money, some people will consider mortgaging the house loan and think that although the house is mortgaged out, but does not affect the normal residence.
Why do you say never to mortgage your house? The reasons may be the following: the use of the loan is restricted. The use of a mortgage house loan can only be for daily consumption or production and operation, such as home improvement, travel, car purchase, education, wedding, medical, expansion of production, purchase of equipment, etc., and can never be used to purchase property, stocks, futures, financial products and other equity investment and laws and regulations prohibit the use. The loan procedure is quite complicated. A mortgage house loan is not a simple matter, its process is very complicated, in addition to the need to review the borrower's creditworthiness and assess the value of the collateral, a more important point is to prove the specific purpose, prepare materials related to the use of the loan, such as mortgage house for production and operation, to have a fixed business premises, business license, business flow, purchase and sale contract. The loan has strict collateral requirements.
If the collateral for your mortgage house loan is a second home, it is different from a home mortgage loan with the new home purchased as collateral. Second-hand houses are affected by many factors, such as location, type of house, age, and even decoration and orientation of the house, which can make the loan riskier and unlikely to be accepted by the bank, and even if it is accepted by the bank, the maximum loanable percentage is usually no more than 70% of the appraised value of the house. If you mortgage your house to get a loan, the lending speed is very slow. The use of mortgage house loans and collateral is riskier, whereas the process also has more formalities.
The lending bank will consider the risk more, after first reviewing all the paper materials and various certificates submitted by the borrower, they may also personally visit the site of the mortgaged house for inspection, evaluation and survey, and then multi-level approval, the whole process down, the release may take half a month or even longer. This is very unsuitable for people who are in a hurry to use the loan. Using a house as collateral is likely to fall into a loan scam. Some unscrupulous private lending organizations are using house mortgages to set up scams, luring borrowers to mortgage their houses on the one hand, and continuing to cheat lenders out of their money on the other. In the end, the borrower not only did not borrow the loan, and even lost his house, so for the sake of property security please do not feel free to mortgage the house.