Whether a first time buyer or a homeowner looking to extend, many of us will borrow money by way of a mortgage or re-mortgage.
If you already own your home you may be able to re-mortgage your entire borrowings at a lower interest rate with a new lender or you could approach your existing lender for a further advance on your existing mortgage. Borrowers should consider all options available on the market for the loan purpose.
To ensure the drawdown of funds goes smoothly it is important that you instruct your solicitor at an early stage. When your property is being re-mortgaged you will need to sign an authority with your solicitor to take up your title deeds from your current financial institution to review the existing documents. Your solicitor will advise you on any other documents that you may require.
When you are buying a home you will need to give your solicitor’s details to the seller’s auctioneer and to your bank. Your bank will send your letter of loan offer to your solicitor who will go through its terms and conditions with you.
The auctioneer will issue a sales letter to both the seller’s and the buyer’s solicitors once a booking deposit is paid. The contracts for the sale of the property are prepared by the seller’s solicitor and sent to your solicitor together with copies of the title deeds.
Your letter of loan offer will include some non-legal matters depending on your personal circumstances. For example these include your property and life insurance, proving your identity under anti-money-laundering law, direct debit mandate and proving balance of funds.
All borrowers should consider the options available to them bearing in mind their current circumstances. Typically your mortgage will spread over a term of between 20 to 30 years and your circumstances will change throughout the course of your mortgage. You should consider the option of changing your mortgage provider to suit your changing circumstances be it personal or financial.
When you buy or re-mortgage, there are costs to consider, such as stamp duty, registration fees, search fees and legal fees.
To budget for those costs Michael Houlihan & Partners Solicitors, 9/11 Bindon Street, Ennis Co. Clare will provide you with a written estimate at the outset.