Acquiring a mortgage is often an important stage in the journey to owning your own home. There are several steps that happen following your mortgage offer acceptance. Understanding this process is essential for both buyers and sellers to ensure a smooth and successful property purchase. Here we explore the steps involved following the successful application for a mortgage:
Mortgage offer acceptance
Once your mortgage application has been approved, you’ll receive a formal mortgage offer from your lender. This will outline the terms and conditions of the loan. Review the offer carefully and formally accept it to proceed with the closing process.
Appointment with solicitor or conveyancer
Property transactions are typically handled by solicitors or conveyancers. You’ll need to appoint a legal professional to oversee the closing process. They will handle the necessary paperwork, and ensure all legal requirements are met.
Property searches and surveys
Your solicitor or conveyancer will conduct the necessary searches and surveys to assess the condition of the property. These steps help identify any potential issues or concerns that may need to be addressed before closing.
Exchange of contracts
Once all parties are satisfied with the terms of the transaction, contracts are exchanged between the buyer and seller. This happens through both legal representatives. At this stage, both parties are legally bound to complete the sale/purchase of the property.
Arrange mortgage funds
Prior to closing, your mortgage funds must be in place and ready to be transferred to the seller’s solicitor on the agreed completion date. Your lender will coordinate the transfer of funds with your legal representative. If your application is made through a broker such as Bell Mortgage Solutions, we will arrange this for you.
Finalise closing documents
Your solicitor will prepare the necessary closing documents. This will include the transfer deed, mortgage deed, and any other legal paperwork required for the transaction. Review these documents carefully and sign them as instructed.
Settlement statement
Before closing, your solicitor will provide you with a settlement statement. This details the final costs and fees associated with the transaction. It will include the purchase price, legal fees, stamp duty, and any other expenses you’ll need to cover.
Completion day
On completion day, the remaining balance of the purchase price is transferred from your solicitor’s account to the seller’s solicitor. Once the funds have been received, ownership of the property is legally transferred to you. You can now collect the keys to your new home!
Registration and stamp duty
Following completion, your solicitor will register the property in your name with the Land Registry. They will arrange for payment of stamp duty*, if this is applicable, on your behalf.
Celebrate and settle in
Congratulations! You’ve successfully closed on your mortgage and become the proud owner of a new property! Celebrate this milestone and begin making memories in your new home.
Navigating the mortgage closing process may seem daunting. However with the right guidance and support from legal professionals and lenders, you can navigate this stage with confidence. By being aware of the steps involved in the whole process, you’ll be well-prepared to complete the transaction.
Please note: Your home may be repossessed if you do not keep up repayments on your mortgage.
* Please be aware that by clicking onto the above link you are leaving the Bell Mortgage Solutions website. Please note that neither Bell Mortgage Solutions nor PRIMIS are responsible for the accuracy of the information contained within the linked site accessible from this page.
The information contained within was correct at the time of publication but is subject to change.
Bell Mortgage Solutions 