Conditions of the credit process

Foreigners who want to invest in Turkey may want to make their investment by taking out a loan. In this context, if Turkish banks previously had difficulties lending to foreign citizens, today they offer loans much more easily. In particular, recently it has become much easier to attract loans as part of the government policy of supporting foreign investment.

Lately you can meet a lot of foreigners in Turkey. In particular, recent events and economic conditions in Turkey are encouraging foreign investment. At the moment, it can be stated that investments in real estate have become much more in demand. The number of people wishing to purchase real estate on credit is also quite large. Now let's take a look at the process and conditions of buying a house on credit.

Conditions for applying for a loan for foreigners

If foreign citizens reside in Turkey, they must provide their residence and work permit to the bank in order to receive a loan. Banks usually require a residence or work permit for 12/24 months. A work permit or residence permit alone may not be enough for foreigners to apply for a loan. In this case, banks may also require guarantors from depositors. Banks require guarantors from Turkish citizens in case of possible deportation from Turkey. If an application to purchase real estate is submitted, it is important to provide the bank with a document on the ownership of the property, electricity and water bills.

Documents showing 3 months' income of foreigners working in Turkey, such as salary certificates, are among the documents requested by the bank. Under this condition, unemployed people cannot take out loans. However, in order for these people to take out loans, they may be asked to provide bank account data showing their income in their own country. Apart from all this, the passport and photocopy of the passport must be submitted to the banks along with the application form.

Documents requested for a home loan

Foreigners can apply for a home loan if they want to invest in Turkey. At this point, you need to open an account with the bank where you want to take out a loan. To apply for a home loan, the following documents are required.

original passport

copy of the passport

Certificate of ownership of the purchased property

Guarantor and cash guarantee residing in Turkey and Turkish citizen

income certificate

Work permit document or residence permit

Guarantee

These documents vary from bank to bank. Therefore, different banks may request different documents. Before applying for a loan, the application documents must be verified by examining the websites of the respective banks.

Stages of buying a house on credit

If you want to invest in Turkey using a loan, you need to follow a few steps. Now let's look at these steps together.

Find the best loan option

When you decide to buy a house for investment in Turkey, you need to find the right bank and loan option for the loan option. You should do detailed research on this matter. However, you can also choose real estate consultants who will do the research for you and help you in this regard. Through us, you can get the most suitable home loan for your budget and payment plan. When comparing home loan options of banks, you can choose the one that offers the easiest payment method.

Pre-Evaluation Process

Once you find the home loan that suits you best, you can take advantage of fast banking transactions to complete the loan process. You can quickly calculate the payment amount and interest rate according to your required repayment period by entering the information and details requested from you. This step asks for details such as monthly income, credit score and the amount of loan to be used. This way, you can get detailed information about the loan with a pre-appraisal.

Transactions with expertise

Once your loan is approved, the appraisal process begins to calculate the value of the home you want. The value of the home you like is determined by the appraisal, and you can use a loan for 80% of that value. 20% of the cost of the house must be paid in advance to the bank.

Preparation of documents for applying for a loan

The above mentioned documents and, if any, other documents requested by the bank must be fully prepared and submitted to the bank. Otherwise, a positive outcome of the credit process cannot be expected.

Loan application approval

After the above steps and complete submission of documents, the loan approval process begins. The bank examines the submitted documents and issues a positive or negative review. This way you can find out if you can buy a house with a loan.

Deed and mortgage process

After the home loan is approved by the bank, purchase and sale transactions are carried out jointly with the bank's lawyer or branch employee. For these transactions you need to go to the cadastral chamber. Transfers and mortgage transactions related to the purchased house are carried out at the property registration office. If there are no objections from the bank's lawyer or branch employee, a mortgage is issued on the title document. After this process, the bank is returned and the process is completed. The required payment is made to the seller of the home.

Home loan costs

Housing loan costs are calculated in accordance with the rates set by banks for housing, consumer and car loans. However, we can roughly say that the costs are as follows.

File fee (credit allocation fee): 5 per thousand credit amount used.

Valuation fee: from 800 TL to 1000 TL.

Real estate collateral fee (mortgage opening fee): from 300 TL to 400 TL.

Home Insurance: Price varies depending on province, area, square footage, age and home insurance company.

Mandatory earthquake insurance (DASK)