Can I use Mortgage to Buy property in Turkey?
With a robust economy and a booming tourism industry, Turkey is quickly becoming a hot spot for property purchases. Recent changes to the Turkish laws have opened the door for foreigners from more than 120 different countries to own Turkey property. In addition, there are thousands of listings of Turkey property for sale, making it almost a guarantee that you will find one you like.
You’ve done all the right things. You researched the country, found the region you liked. Visited and toured, hired a realtor and are ready to find a location that you wish to purchase. Chances are good that you will need to arrange a mortgage to finance your dream property. How does one go about acquiring a mortgage in Turkey?
Ask for help
Your real estate broker should be able to refer you to reputable lenders in Turkey from which you can obtain a mortgage. Get a preliminary idea of what you will be able to borrow. Turkish loans are for 70% of the value of the property – leaving 30% to be put down on the property. You will need to have verifiable income and a clean credit check.
After you have discovered the property that you want, you will need to provide the lender with official paperwork. An application, documents verifying your income, a credit check, etc will need to be performed. This will all take time, so make sure that you have planned to be in country for a few days to ensure all the necessary paperwork is completed.
What’s it worth
The lender will do an appraisal of the property to ensure the purchase price is appropriate for its value. It will make sure that all legalities are covered and that neither you nor the seller is being cheated out of money.
Completion of these preliminary steps will hopefully lead to an official offer of financing from your lender. Keep in mind that you will need to sign and return paperwork to the lender before the financing is official. In addition, some lenders may require you to have an account at a Turkish bank. Your real estate broker will be able to help you navigate the banking process. Wire transfers are relatively easy to set up, and banking can be handled easily. Once the finance process has been completed, the military clearances taken care of and all the paperwork finished, your broker will set a date for the transfer of the title.
In country help
Securing a professional solicitor can be a great help when you are living outside of the country. By giving your solicitor power of attorney, they can handle any paperwork that needs to be signed once you have returned to your home. It is important, therefore, that you hire a company or individual that is reputable and has experience in foreign real estate transactions. There are legalities involved in the purchase of a Property in Turkey – having someone who is already familiar with them will increase your chance of success and lessen the amount of stress you have.
Living in a dream