The home mortgage loan process

The process of buying a home and obtaining a home mortgage loan can be a frustrating and time consuming process. It is therefore beneficial to you to know the basic steps involved in this process.

After you sign an offer to purchase a home with the seller, it is time to find a mortgage loan, or other home financing solutions that will best meet all your requirements. You can either consult a mortgage broker in regard to your home mortgage loan, or you can approach financial institutions to weigh up your options yourself.

It is best to consult with more than one bank in this regard as you will be offered different terms and interest rates.

After the financial institution approves your home mortgage loan, a bond attorney is instructed to register your loan. The seller's Transferring Attorney must then transfer the property. This entails requesting the title deed and cancellation figures from the bank that holds the current home mortgage loan of the property. The local authority is then approached for a statement of rates and taxes.

Once the Transferring Attorney receives the title deed and cancellation figures, the buyer and seller must sign the transfer documents. Transfer costs are covered by the buyer. The Cancellation Attorney can now cancel the seller's home mortgage loan upon reception of a guarantee for the amount that is still owed.

The buyer's Bond Attorney now contacts the Transferring Attorney to inform him/her of the amount available for guarantees, and to request the transfer's draft deed and guarantee requirements. The Bond Attorney then readies and issues the necessary guarantees and forwards these to the Transferring Attorney as well. The Bond Attorney can now prepare the home mortgage loan contracts for lodging at the Deeds Office.

All the documents are submitted to the Deeds office simultaneously. They can take a couple of weeks to go through the documentation before all the attorneys involved meet with them for registration. On the registration day, the financial institution, where you as buyer have your home mortgage loan, pays out in full. Home financing solutions like the home mortgage can make the whole process run much more smoothly.