When planning to purchase a home, necessary money is the main factor. Since not everyone can get the full amount, usually one turns to a bank to get a mortgage. So we continue our dream of finally having the house of our desires. However, it may happen that the bank rejects the loan. In this guide, we’ll see how to protect yourself if the bank doesn’t grant the loan.
Why protect yourself if the loan is not granted
The reason why it is necessary to protect yourself from this potential possibility is twofold:
- On the one hand, you lose the opportunity to purchase a property that was clearly the best fit for your needs;
- On the other hand, if there is no protection during the settlement stage, there is also a risk of losing the deposit paid.
Therefore, before you see how to protect yourself if the bank does not grant the loan, it is important to confirm that the owner of the property and the real estate agent are the two people involved in the negotiation. We are basically “protected” from them. Meaning, if the bank does not grant the loan, it will not be possible to take revenge on the institution.
The reasons for not disbursing the loan in general are:
- Mismatch between Appraisal Appraisal The terms the buyer has described regarding the property (which can be resolved);
- Surveying problems (solvable);
- Any reports of bad payments that the buyer has to make (insurmountable).
However, there is a way to protect yourself from these possibilities.
Protect yourself with the collection clause
This abbreviated term “sbf” means a very simple but important concept. This means that the buyer pledges to purchase the property as long as the loan is successful. In other words, it specifies that the buyer, if the bank does not grant the loan for any reason, is no longer obligated to fulfill it. Not only that, but it can also recover the deposit paid as well as real estate agent commission.
The rationale for this provision is referred to in civil law, toArticle 1353. Meaning that the buyer blindly enters into the negotiation; If an error occurs, he may not fulfill it.