Top 10 Mortgage Advice When Selling a Property

Top 10 Mortgage Advice When Selling a Property Keywords: mortgage advice, ukmoneyman

Useful information about the mortgage contract, the conditions under which it can be set up, the effects of the mortgage, the documents that must be verified when setting up a mortgage, the advantages and disadvantages of such a set-up, and things to consider when you want to set up a mortgage on your home, all of these are presented in a schematic, easy-to-follow manner in the article below.

Analyzing the balance of transactions concluded years before, you can notice that a sufficient number of them involved real estate that was encumbered by the mortgage. So, here is some mortgage advice that you should consider.

Where Can You Find Mortgage Advice?

You can manage to conclude transactions with mortgaged real estate without diminishing the sale value of the property if you are involved in understanding the banking mechanisms. People that represented owner clients including the relationship with the bank and that provided necessary, sufficient, relevant, and qualified information to the buyer are the ones from where you can find some mortgage advice.

So, what do you do when you decide to sell your mortgaged property?

1. Find Out if You Can Sell Before the Actual Sale Visit the bank in favor of which the mortgage is registered. If you are overdue or have had, at some point, overdue, inquire if this may prevent you from selling. It should be noted that those who have several outstanding installments are included in the file of "special clients", the analysis performed to issue the alienation agreement can be decided by a special council, etc.

Keep in mind to ask for mortgage advice because, in certain special situations, the bank may not agree with the alienation! Legally it has this right.

2. Find Out the Exact Amount Needed to Repay the Loan

Ask your credit officer to prepare an early credit repayment simulation (principal plus interest).

Ask if the bank charges any other fees or charges. Try to obtain this information in writing by going personally to the bank's headquarters. Remember that the account at home does not match the one at the fair. Make sure that the amount needed to relieve the property is not higher than its market value. Otherwise, you'll need to find an ukmoneyman to solve the problem.

3. AskAbout the Time Required to Issue the Alienation Agreement A piece of very important information in the real estate transaction. Please note that the bank will also ask for the name of the promising buyer, the alienation agreement being expressly linked to that person. Please note that the deadline for issuing such a document can be up to 40 days, during which time many things can happen.

4. Ask for a Discussion with a Superior The quality and accuracy of the information provided by the bank are very important for a successful transaction. Due to the crisis, some banks have reduced their staff or hired young people who may not have the necessary experience in such situations. Make sure you receive complete information from a competent person. You should ask everything you need to know about mortgage advice.

5. Communicate to Both PartsThat the Property is Mortgaged Talk to the real estate agent about the mortgage and the information from the bank. When viewing the house, you should not start the discussion with the subject of the mortgage. Let the real estate agent choose the right time to watch. It is recommended that you provide the mortgage information at the latest at the end of the property tour, before any further questions.

Avoid starting or closing the viewing by talking about this topic.

6. Get an ExcerptFrom the Land Information Book It is an optional step but it gives a feeling of confidence in the transaction. The land book extract can be requested by the buyer. The land book is a document where you can find information about a certain building like its location, name and description. It certifies all the data such as the above, the owner, and data about the mortgage. As the name implies, it is an informative document. This extract does not allow the conclusion of a sale-purchase contract.

7. YouHave an Agreement of Will, What Do YouDo Next?

It is recommendedto conclude a pre-contract of sale-purchase at the notary. The deadline for closing the transaction must be the one communicated by the bank for obtaining the alienation agreement plus a few days of security. After signing the pre-contract, the first way is to the bank, where you must submit a copy of it, together with the request for obtaining the alienation agreement as well as the request for full early repayment of the loan.

8. What Will the Alienation Agreement Contain?

The alienation agreement expressly provides that the bank agrees that the property is sold to buyer X and contains a series of instructions for drawing up the sale-purchase contract, instructions which are observed exactly by the notary public. The bank will indicate the account in which the payment will be made as well as the exact amount necessary to settle the loan granted.

9. Pay Attention to Money Transactions

Attention, some problems may arise if the transaction price is in one currency (euro, say) and the loan was contracted in pounds or Swiss francs. Before you make this step ask for some mortgage advice. It is recommended that you open a current account at the bank where you have the credit in the currency of the transaction, communicate it to the bank so that it can be mentioned in the agreement, and then transfer the necessary amount to the loan, not before making the foreign exchange. Pay attention to the exchange rate, there are large amounts at stake and its value can generate differences that are not negligible.

10. You Signed the Sale-Purchase Contract, What’s Next?

After the bank has drawn the amount necessary to close the credit agreement, it will issue the mortgage cancellation certificate. Provide the notary with the respective document, to delete the document from the Land Book. Stop a copy, right in the house.