Obtaining a mortgage loan requires compliance with a series of procedures that can be somewhat complex if the steps to follow are unknown. In this article we will know, in detail, the steps to obtain a mortgage loan.
We are going to divide the process of obtaining a mortgage loan into three main stages , which we develop below: commercial process, formalization process and registration process.
Steps to obtain a mortgage loan: commercial process
The first of the three major stages is the commercial process , in which information about the mortgage credit that is requested is requested and, after the election of the same, a request for credit evaluation is presented before the entity.
Thus, we can distinguish the following steps to perform:
- Find out : it is vitally important that before applying for a mortgage loan you look for information about the different types of loans and the requirements, characteristics and payments of each one of them. In the following post you can find different factors to consider when applying for a loan: What is important to know when requesting a mortgage or consumer credit ?.
After you have shortlisted the mortgage loans that best fit your needs, compare between them. Some entities also have a simulator so you can know what the dividend to be paid and the total expenses associated with the credit would be.
- Enter your credit application for evaluation: once you have selected the mortgage loan you want to obtain, go to the branch of the bank and request the evolution of your credit.
To do this, you must present the background supporting your situation and fill out the Personal Health Statement.
- Credit evaluation: after obtaining the documents indicated above, these will be analyzed by the corresponding area of the entity.
- Evaluation result: after the analysis, the resolution of the evaluation will be informed, which may be approved or rejected. In the case of being approved, your mortgage executive will inform you of the approved conditions and what is necessary to continue with the operation.
The commercial process has an estimated duration of between 5 and 15 business days.
Steps to obtain a mortgage loan: formalization process
The second stage, the formalization process , is the longest, since it includes all the steps related to the preparation and signing of the deed of ownership of the mortgage loan .
The steps to take at this stage are as follows:
- Business closing : once you have accepted the credit conditions, you must inform the executive and proceed to:
- The delivery of legal documentation for the study of the title deed.
- Payment of operational expenses.
- Study of Titles and Appraisal : after the delivery of documents and the payment, the study of the title of the property, the appraisal of the same and the evaluation for the insurance of relief are initiated.
- Preparation of the Deed and Deed Order: once the title deeds are approved, the deed of the credit is prepared under the agreed conditions.
- Dispatch of the Deed to the Notary: the bank will send the deed to the notary and will give you notice to attend to sign it.
- Signature of the Deed : all those who must appear in the deed (the holder or holders, the notifying agent (if applicable) and the selling party if applicable) must attend the notary to sign the deed. The bank that grants the mortgage loan must also sign the deed.
- Uprising : if the property is mortgaged in another institution, you must request it to be raised by sending a letter of protection to that institution. In addition, the current creditor institution must sign authorizing the mortgage rise.
It is important that you read your deed carefully before signing it, mainly reviewing the amount of the credit, the interest rate, the term, the agreed installments, the property purchased and your personal data.
Remember that the expenses corresponding to the Notary’s fees and the mutual tax (stamps and stamps), you must pay at the notary at the time of signing.
The average term of the formalization process usually varies between 15 and 45 business days.
Steps to obtain a mortgage loan: registration process
The last stage, the registration process , includes, as its name implies, the inscription of the credit in the Real Estate Conservator and the final review and closing of the operation.
The steps to follow in this stage are the following:
- Registration in CBR: at this stage you must enter the deed, previously signed, in the Real Estate Conservator (CBR) for the registration of:
Times vary depending on each Conservative. The average term for this stage is 30 days in the Conservator of Santiago, but in other Conservatives, it can be up to 90 days.
- Final review and end of the operation: the bank will review your deed to ensure proper registration and prepare a final report. After that, payment will be made and the following documents will be delivered to you:
- Copy of the deed
- Copy of the CBR enrollment certificate
- Final settlement of expenses.
The process to obtrain a mortgage loan
As you can see, the process to obtain a mortgage loan is a long process with a large number of steps and formalities. Therefore it is necessary that you know the procedure to follow and that you carefully review each of the documents and clauses that you sign. Remember that in the following post you can find a list of the best mortgage loans: What are the best mortgage loans?