Step 9: Loan approved and funds requested

This page contains a detailed description of Step 9 of the 10-step property sale process

WHAT

DOES THIS

STEP

MEAN?

Once your bank has formally approved your loan in writing on the basis of the price of the house and information furnished by you, a loan pack is issued to you and the Loan Pack comprising Mortgage Documentation is issued to your Solicitor. This solicitor loan pack has now been received. 

Prior to your bank allowing your solicitor to drawdown your mortgage funds, there are a number of conditions that must be complied with.  These vary considerably from bank to bank and for each individual, therefore, it will down to each client and solicitor to deal with them as they arise.

Your solicitor will go through the loan offer and will discuss key terms with you. Your solicitor will also ensure the various documents are signed and completed to enable the Bank to proceed with your loan.

For example one of the documents to be dealt with is the “Certificate of Title”.

 

Once good marketable title is obtained the solicitor will then give a Certificate of Title and the bank will rely on this together with the solicitor’s undertaking and the lender will hold onto the documents of title.

 

Once the bank’s mortgage is secured on the property and good marketable title has been obtained then the bank will be able to move on the property if there is a default on the loan.

Your solicitor must be happy to proceed with the purchase of a property and they must ensure that there is no problem which will affect their ability to give an undertaking to obtain good marketable title and to certify title. 

Problems which would concern a solicitor would be issues such as easements, rights of way, planning permission issues, building regulation problems, septic tanks on someone else’s property, no certificate of compliance from an architect/engineer, and so forth.

Minor issues which might be flagged up in a structural survey may not cause much concern, but the issues would need to be genuinely minor.
 

The Mortgage Documentation consists of:

  • General Housing Loan Mortgage Conditions

  • General Housing Loan Mortgage Conditions (Borrower's Copy)

  • Payment Request form

  • Housing Loan Mortgage( In duplicate). 

  • Borrower's Copy of Housing Loan Mortgage

  • Power of Attorney

  • Notice of Assignment

  • Certificate of Title

  • Confirmation of Mortgage

  • Solicitors Undertaking

  • Deed of Assignment
     

As mentioned there are items that need your solicitor's attention prior to drawdown examples are: 

 

  • Power of Attorney

  • Notice of Assignment

  • Certificate of Title

  • Confirmation of Mortgage

  • Solicitors Undertaking

  • Deed of Assignment

Your bank will require that the conditions set out in your loan offer are all completed before you can draw down funds. 
These conditions typically include:

  • Life Cover which may include attending a medical examination

  • House Insurance

  • Valuation of the house

  • Completing all relevant mortgage documentation, bank mandates, ID documents, P60’s etc.

​​

Once these are all competed funds can be requested. Please note it can take 48 hours to 10 days to get funds when requested from a bank depending on the bank's workload. 

WHY IS

THIS

STEP

IMPORTANT?

WHAT

DO I

DO

NEXT?

You should go through the loan offer in detail and make sure that the rates and term in the loan offer correspond with what you have agreed with the bank. When your Solicitor has checked the Loan Pack and discussed key terms with you, various documents are signed and completed to enable the Bank to proceed with your loan.

 

Should you be unhappy with any aspect of your loan offer ensure you contact your lending institution.

Once finance pre-conditions have been complied with and mortgage funds have been drawn down both sets of solicitors will move to closing phase of the sale.  

WHAT

IS THE

NEXT

STEP?

WHO IS

INVOLVED

IN THE

NEXT

STEP?

All parties to the property transaction are involved in closing the sale including; the buyer, seller, estate agent, both solicitors, the bank, and legal searching companies. 

Please feel free to contact daftassist@lintil.com or see our FAQs for any questions you might have. 

CONTACT

US

 
 
 
 
 
 

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