Starting a mortgage is a transfer of funds in the amount of the loan granted to us by the bank. Before we can dispose of them, we still have a few formalities
Mobilization of a mortgage – conditions
What conditions we have to meet to launch a mortgage is contained in the agreement we signed with the bank. It is all about adequate security, eg buying life or unemployment insurance. You may also need property insurance.
What we have to do after signing the loan agreement is the transfer of ownership of the purchased property. This must be a preliminary notary agreement or immediately a purchase / sale agreement. The notarial deed must contain such data as payment dates and amounts, which we have agreed with the developer or owner of the property and the amount of own contribution (we do not include credit funds). Let us remember that this data will be required by the bank before the mortgage is issued.
Do you want to get a loan? You must have a notarial deed!
Before the bank pays out the loan, it will ask us for a notarial deed and proof that we have paid our part of the price. Depending on the specific bank, other additional requirements may also appear. If we plan to allocate the funds from the loan for building a house, we will have to attach the building permit to the required documents. Sometimes the condition for starting a loan may also be the purchase of other products offered by the bank (eg opening a personal account or having a credit card). Often, agreeing to this is necessary to take advantage of the promotion or to receive a loan on better terms. It may also happen that in exchange for eg issuing a credit card the bank will offer us a reduction in the margin.
Some banks go a step further and expect future borrowers not only to buy other payment instruments, but also to actively use them. Sometimes, to get a loan in a given bank we will have to open an account and declare the amount of monthly inflows. It may also be necessary to perform a given number of non-cash transactions, or to perform operations for a specified amount. In a situation where we do not meet these conditions (remember that we agreed to them by signing the contract) the bank will have the right to raise our margin to normal (and not promotional) amount.
How long does it take to start a mortgage?
At the stage of signing the loan agreement, let’s look at how and when the funds will be paid to us. Unfavorable conditions for disbursement of the loan, eg disbursement in tranches, may make it difficult for us to buy the dream property.
The duration of the mortgage loan depends on its amount, type and financial policy of a particular bank. It is also important how quickly we will complete the formalities required from us. The sooner we complete this task, the faster the money will be in our account. It takes from a few to several days to start the mortgage.