Purchasing an apartment in 6 steps
To simplify the process you will pass through, we have prepared this simple guide that will tell you what to pay attention to and give you helpful advice and that will in 6 steps lead you to your new home.
- 1Collecting of documentation
- 2Approval by the bank
- 3Loan insurance
- 4Certification of contract documentation
- 5Entering real estate to cadastral register
- 6Loan disbursement
1. Collecting of documentation
Documentation 6 documents
Costs 4 items
Duration 5 business days
You collect the following documents:
- Real estate valuation
- (Pre)agreement on real estate purchase
- Proof on ownership over the mortgaged real estate
- Certified payroll slips
- Certificate on employment and incomes
- Income transfer statement
All other documents necessary for the application is prepared by your personal banker.
| Document | Where do you obtain or who issues it? | Good to know! |
|---|---|---|
| Real estate valuation | Certified assessor | At the time of application, the value assessment of the real estate must not be older than 30 days. |
| (Pre)agreement on real estate purchase | Notary | The pre-agreement or the agreement does not have to be certified by a notary at the time of applying for a loan, but if you give the down payment to the seller, which is treated as participation, the advice is that the agreement/pre-agreement is certified, because the transfer of funds to the account of the seller requires notarized agreement/pre-agreement as a legal basis for the transfer of funds. List of notaries can be found here |
| Proof on real estate ownership | Real estate cadaster register | An excerpt from the cadaster register is considered as a proof. This document must not be older than 7 days. |
| Certified payroll slips | Employer | Issued by the employer for the last 3 months. |
| Certificate on employment and incomes | Employer | Certified by the employer, and the forms can be found in our branch office or downloaded here. |
| Income transfer statement | Employer | Certified by the employer, and the forms can be found in our branch office or downloaded here. |
Costs
- Real estate valuation
- Certification of the agreement on real estate purchase
- Issuing of real estate folio in the land register
- Credit Bureau report
Time needed
It takes about 5 business days, but can be shorter if you already have the required documents.
Step 2 Approval by the bank
2. Approval by the bank
Required documentation No documentation
Costs No costs
Estimated time 5 business days
Information
The completeness and accuracy of documentation, your creditworthiness and legality of the property subject to the purchase is assessed. Based on the collected information, the bank makes a decision on approval or rejection of the request. If anything is missing in your documentation, your personal banker will contact you.
Costs
No costs in this stage
Time needed
Takes about 5 business days.
Step 1 Collecting of documentation
Step 3 Loan insurance
3. Loan insurance
Required documentation 2 documents
Costs 2 items
Estimated time 1 business day
Required documentation
- Life insurance policy
- Real estate insurance policy
f you make insurance through OTP Osiguranje, the whole process ends in one place, without the risk of prolonging the process for a few more days.
| Type of insurance | Where do you obtain or who issues it? | Good to know! |
|---|---|---|
| PLife insurance policy | OTP Osiguranje or of other insurance company | Life insurance policy is issued to the amount and period of the loan and must be in favor of the bank. |
| Real estate insurance policy | OTP Osiguranje or of other insurance company | Real estate insurance policy for basic and additional water spill risk must be tin favor of the bank and must be issued to the construction value of the real estate subject to the mortgage and to the loan period. |
Costs
- Monthly cost of life insurance premium - payments by direct debit
- The annual cost of the real estate insurance premium
Estimated time
Completed in one business day.
Step 2 Approval by the bank
Step 4 Certification of contract documentation
4. Certification of contract documentation
Required documentation 3 documents
Costs 2 items
Estimated time 5 business days
Required documentation
- Purchase agreement
- Pledge statement
- The request for registration of the lien
Now it is important to certify the purchase agreement at the notary where also a pledge statement is made in the form of public notary records.
The request for registration of the lien is submitted at the competent real estate register. Your personal banker will prepare the documents.
| Document | Where do you obtain or who issues it? | Good to know! |
|---|---|---|
| Purchase agreement | Notary | The contract must be certified. |
| Pledge statement | Notary | The contract must be certified. |
| The request for registration of the lien | Bank | The form is obtained at the bank and submitted at the real estate cadaster register. Must have reception seal of the real estate cadaster register which is an evidence that the documentation for mortgage register has been submitted at the cadaster register. |
Costs
- Purchase agreement certification
- Certification of the pledge statement at the notary
Estimated time
About 5 business days.
Step 3 Loan insurance
Step 5 Entering real estate to cadastral register
5. Entering real estate to cadastral register
Required documentation 1 document
Costs mortgage registering
Estimated time 1 business day
Required documentation
- The decision on settling the first order mortgage in the favor of the bank
This decision is obtained at the competent real estate cadaster register. To register a lien, it is necessary to attach supporting documentation prepared by your personal banker or that you have obtained in any of the previous steps - Contract on long-term housing loan with the bank, Proof on real estate ownership, Pledge statement and two Requests for registration of the lien.
| Document | Where do you obtain or who issues it? | Good to know! |
|---|---|---|
| The decision on settling the first order mortgage in the favor of the bank | Real estate cadaster register | In order to register the lien, it is also necessary to submit to the Court the Contract on long-term housing loan with the bank, Proof on real estate ownership, Pledge statement and two Requests for registration of the lien. |
Costs
- Mortgage registration
Estimated time
Completed in one business day.
Step 4 Certification of contract documentation
Step 6 Loan disbursement
6. Loan disbursement
Required documentation No documentation
Costs 1 item
Estimated time 1 business day
Information
This is the final step when the money in the amount of the requested loan is transferred to the account of the seller of the property. It is important to know that the loan is released in dinars, and the money is transferred to the seller in the currency defined in the purchase agreement.
It is recommended that the seller has an account with OTP bank because of the costs, more simple process, security and speed of payment.
Costs
- Fee for loan processing
Estimated time
Completed in one business day.
Step 5 Entering real estate to cadastral register
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