A look at the top mortgage risks

Dr. Mons Shujaa

real estate financing is one of the most important factors helping to own a property, whether that property is residential or commercial, it is necessary to take into account the existence of several risks for all parties related to the subject of financing.

Real estate financing We will review here the risks that are of interest to the individual requesting residential financing and which may be exposed to during the financing period, which extends to relatively long years compared to short-term personal financing.

1- Ensure the structure of the property, whether it is a residential or commercial property.

1- Ensuring the structural structure of the building and the quality and guarantee of the materials used in construction, and this is done through a thorough technical examination of the building and the absence of defects and obtaining official certificates approved for warranty.

2- Ensuring the suitability of the building and the quality of the materials used in the construction.

2- Ensure that the mortgage margin is appropriate and stable if possible for everyone, preferably if that margin is subsidized by the real estate fund if the applicant is fully or partially subsidized by it, as well as ensuring that it is fixed or a variable margin based on the bank interest rate, and this will play an important role in stabilizing the monthly income of the applicant and not bearing a cost that may exceed his financial ability in the long term.

3- The difficulty of replacing the building and the quality and guarantee of the materials used in the construction and this is done through a careful technical inspection of the building and obtaining official certificates of guarantee.

3- The difficulty of replacing or exiting the property and this is considered one of the most important points that must be well thought out before making the decision to own and take the mortgage, so it is necessary to study the location of the house and the proximity of services and the ease of handling and access after confirming the state of construction as I mentioned earlier, as selling a residential property is not done so quickly and will result in financial losses from the cost of financing also and so on from furniture, modifications and costs paid for housing and this means that thinking well about all factors and potential risks is very necessary to protect you, God willing.

Specialist in real estate finance and performance

@MounesShujaa