Next Step

P

pint6

Registered User
Messages
72
Hello There,

'am very curious to know the next step in my home buying process. The following things are done now :

a. my solicitor has received the papers form vendors solicitor and he has sent a copy to me
b. my mortgage broker has arranged for valuation and it is done
c. we arranged someone to the structural survey, i just received the report and everything looks fine.
d. I have taken Life - Mortgage protection cover also,

I was talking to my mortgage broker this morning and he told me that he has advised bank all above and told me that he will arrange to get formal approval by the end of this week, what does he mean by this?

What happens next ?
How long do you reckon it takes to arrange a closing?

Sorry for lot of questions, but please advise.

Regards,
Pint6
 
Your mortgage broker will get an offer of a mortgage from whatever inistitution you are going with. You have to sign this in order for them to provide u with the finances. (You also need to ensure that they have your insurance policy, that you have signed an undertaking to sign this policy over to them and they also want a signed direct debit instruction so they know what account your mortgage will come from)

Your solicitor will get you to sign contracts assuming they are ready at their end (checked the title on the property etc).

He/she will return these signed contracts to the vendors solicitor and suggest a close date.

Assuming there are no other delays, you could probably close within two weeks (or less) of signing contracts. You don't have to be present to close and can get your keys that day.

The types of things that cause delays from what I can see are:

Delay in life assurance certificate being issued (lender won't proceed without that).
Delay in vendor (or tenant) moving out pushing the close date out.
Cheques don't get couriered out on the right day or to the right person.

Hope this helps...Having been through it lately, its all I think about!! I'm sure others may suggest other possible delays or processes I may have omitted!
 
Thanks Lauren,

I had a chat with my insurance broker, he told me that the Life policy(mortgage protection) cover can be activated immediately, he is just waiting from my mortgage broker to show him green light.

Your comment : Your solicitor will get you to sign contracts assuming they are ready at their end (checked the title on the property etc).

Do you mean that solicitor can prepare the contract prior loan is sanctioned from the lender?

Pint 6
 
It would normally be the solicitor who would receive the loan pack, not the broker, so once this is received by your solicitor, he/she will contact you to call to complete the contracts and all mortgage documentation.

Contracts together with a 10% deposit on signing of contract (less any booking deposit which you may have paid), will be sent by solicitor back to vendors solicitors with a completion date inserted (having discussed same with you), once the vendor is happy with completion date vendor will have to then complete contracts and one part will be returned to your solicitor. Only at this time will a binding contract be in place.

Your solicitor will also have to return documentation to your bank/building society and request monies for the completion date.

You must ensure that all insurances, assurances, valuations, direct debit mandates etc etc are in place for the bank, as they will not release any monies until they have all they request.

A period of two weeks is a little unrealistic, so I would say to you look at 3 weeks, provided everything is plain sailing for your legal team!
 

Solicitor will want to see written loan approval before he will have you sign contracts, its protection for you at the end of the day.
 
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