Process of granting a mortgage

Steps in the process of granting a mortgage

The steps in the process of granting a mortgage are the following:

Documentation for the mortgage

The client must gather all the necessary documentation to process a mortgage and deliver it to the entity so that it can be studied. Some banks require more documentation than others and are faster than others.

Customer profile study

The bank will study all the client's documentation to assess their solvency and ability to pay, in addition to their financial history and current situation, to ensure that they meet the requirements and are capable of repaying the amount.

Bank response

The bank takes a few days to respond on the feasibility of the operation. This period depends on each bank, some take 2-3 days and others even weeks.

It is possible that they will request more documentation before giving you an answer and further lengthen the process.

Mortgage Terms

Once you have received a response from the bank, if it has been positive and the mortgage has been approved, it will explain the particular conditions and the monthly fee that you are going to pay.

At this point you should be very attentive because a mortgage is not only the fee that you are going to pay and the interest rate. There are many other equally important things that can make a mortgage bad or great.

home appraisal

Here there are differences between banks. Some pay the appraisal and others collect it from the client. Banks that allow the client to pay the appraisal, sometimes even allow them to bring their own appraisal as long as it has been done by an approved appraiser and meets all the requirements.

Others, however, are in charge of managing the appraisal even if they are charged.

Signature of conditions

Once you have accepted the conditions, you will have to sign all the binding documents with the bank and finalize the details for the signature before a notary.

Here you will already know all the conditions of the mortgage and all the binding products such as insurance, in addition to the amount of down payment that you will have to contribute for the purchase.

Signature of the transparency act

With the new mortgage law there is a step that did not exist before, and that is the signing of the transparency act.

Said document is signed by the client with the notary days before the signing of the sale, and the client goes alone with the notary, without the entity, to ensure that the client understands and knows what he is going to sign and under what conditions.

Signature of the mortgage before a notary

Finally, you must go before a notary to sign your mortgage with the bank and that is where the relationship with the bank begins until the moment the mortgage is cancelled.