Not all buyers have the ability or desire to make their property purchase with cash. Of course if you are able to buy for cash this can be an excellent tool to get preferential sale terms. If mortgage finance is required great care must be taken to ensure that the mortgage terms are the best available and applicable to your needs.
The market for mortgages is one of continual change and movement as national and global economies fluctuate; this applies to availability, interest rates, down payments and other terms. As such it is essential that seek early assistance from an experienced mortgage broker or banker. The financial crisis of 2006-2009 caused a considerable reduction is mortgage availability and tightening of lending criteria. Recently this has been somewhat relaxed however, comprehensive and detailed documentation and verification procedures are common.
The mortgage procedure varies for each set of circumstances however these steps are common.
- Details are submitted to the mortgage lender or broker and a pre-approval letter is issued giving outline approval of the amount and terms of the mortgage available.
- Offer is made to purchase a property which is supported by the pre-approval letter.
- Purchase and Sale Contract is prepared and signed. Contract should make the transaction contingent upon finance approval.
- Full mortgage application is made within a few days of signing the contract. Comprehensive details and documents are required by lender.
- Lender requires further supporting documents or approves mortgage subject to conditions.
- Full mortgage approval is given terms are locked in and a closing date scheduled.
- Mortgage documents are sent to closing agent and “Clear to close” is given.
- Mortgage documents are signed and balance of down payment paid at closing.
There are many excellent mortgage brokers and direct lending organizations available. Whilst we do not endorse any individual organizations our clients have found the following to provide excellent service.
www.foreingnationalmortgages.com Tel. (954) 288-2700
www.rpfunding.com Tel. (866) 765-0765