Congratulations you have your loan offer, but what happens next? Don’t worry we are going to guide you through the mortgage drawdown process with our Mortgage Drawdown Ultimate Guide Ireland 2022
For most people this is a once or twice in a lifetime transaction. It can be stressful but ultimately it will be worthwhile. Your solicitor needs to make sure that they cover all legal and planning issues before mortgage drawdown so that there won’t be any problems when and if you decide to sell in future.
The following guide will give you a better understanding of the mortgage drawdown process and how you draw down your mortgage.
- How Long Will The Process of a Mortgage Drawdown Last – Mortgage Drawdown Ultimate Guide Ireland 2022
- What Can Delay A Mortgage Drawdown – Mortgage Drawdown Ultimate Guide Ireland 2022
- What Happens When You Get The Contracts – Mortgage Drawdown Ultimate Guide Ireland 2022
- What Happens After You Get The Advice Letter – Mortgage Drawdown Ultimate Guide Ireland 2022
- What Do You Need When You Sign – Mortgage Drawdown Ultimate Guide Ireland 2022
- Are You Committed Once You Sign – Mortgage Drawdown Ultimate Guide Ireland 2022
- When Do You Close And When Do You Pay – Mortgage Drawdown Ultimate Guide Ireland 2022
- What Happens After Closing – Mortgage Drawdown Ultimate Guide Ireland 2022
How Long Will The Process Of A Mortgage Drawdown Take? Mortgage Drawdown Ultimate Guide Ireland 2022
First your own solicitor will need a copy of your loan offer, this should be sent directly to your solicitor by your lender, in what’s known as the loan pack.
Your solicitor will need the loan pack for the house you are purchasing before they can proceed, if it’s a switch they still need the loan offer pack. On average the loan offer takes 4/6 weeks to be issued by the lender.
Most solicitors will not look at any other documents until they have received the loan offer as they don’t want to spend time on a purchase that might not go through.
If you want to speed the mortgage drawdown process up though, you can either undertake to pay the costs in the event of the loan not being received or find a solicitor who will waive their fee if the transaction doesn’t go through.
This can speed up the process considerably, as you can be working on sale contracts whilst still waiting for your loan offer.
What Can Delay Mortgage Drawdown ? Mortgage Drawdown Ultimate Guide Ireland 2022
The issuing of contracts can be delayed if the Vendor’s Solicitor is getting deeds from a Bank (this takes between 10 and 14 days normally, but can take over a month) or if they are missing documents such as Certificates of Compliance.
Your solicitor will request these as they need to make sure that the house complies with all Planning and Title matters.
The house deeds are always needed so requesting these as early as possible is essential in getting your mortgage draw down complete as soon as possible.
It’s worth pushing your solicitor to act fast and move things along in parallel.
Most solicitors don’t specialise in property conveyancing so are only part time on your house purchase. You might want to look for a solicitor who is 100% dedicated to conveyancing and allows you to track your completion process on line.
moneysherpa recommend Jacob Law who specialise in conveyancing and have an online tool so you can upload your docs and track progress. If your switching they offer an all in price of €1350 including outlays and VAT.
Solicitors are also a particularly cautious breed and while this can be a good quality in their role, encouraging them to act faster rather than hang on for all the t’s to be crossed and i’s dotted usually pays off.
If your don’t move quickly vendors can pull out, lenders rates can change and your own circumstances may also shift, so it’s your job to push the solicitor as hard as you can to speed up the closing.
What Happens When You Get The Contracts- Mortgage Drawdown Ultimate Guide Ireland 2022
Once your solicitor has contracts and your loan pack, they read them and advise you about the property. They will also raise queries with the Vendor’s solicitor regarding the title.
They should send you a copy of any correspondence with the vendors solicitor.
What Happens After You Get The Advice Letter- Mortgage Drawdown Ultimate Guide Ireland 2022
Once you get the advice letter from your solicitor you should make sure that you are happy with the advice given and your solicitor will chase for replies to the queries/questions they have sent to the vendor’s Solicitor.
Once they reply and if the replies are ok, your solicitor will call you to arrange an appointment to go through the contracts and sign them if appropriate.
On average it takes two weeks to get replies and arrange to get contracts signed.
What Do You Need When You Sign- Mortgage Drawdown Ultimate Guide Ireland 2022
You need to pay the balance of the deposit on signing contracts and the cheque is payable to the Vendor’s solicitor. If you have not given your solicitor a copy of your driving licence or utility bills, as proof of identity and address, you will need to provide these at this point.
Your solicitor will then go through the contracts and loan offer and if you are happy then you sign the contracts. At this point you should get a definite idea as to the closing date from your solicitor.
Are You Committed When You Sign? – Mortgage Drawdown Ultimate Guide Ireland 2022
Once you sign the contracts, they are sent to the Vendor’s solicitor for signing by the vendor. The contract is not binding until they sign and return one copy.
This normally takes a week or two but it may be longer if the Vendor is buying another property or if there is a chain of transactions.
When Do You Close And When Do You Pay? – Mortgage Drawdown Ultimate Guide Ireland 2022
Once your solicitors have a copy of the contract back and know the closing date, your solicitor will email you details of what balance is required to close.
You also need to make sure that all the documents necessary for drawdown of your loan are with your mortgage provider.
Once your solicitor has all the monies they will arrange the mortgage draw down.
The Vendor’s solicitor then sends your solicitor all the Title documents on trust and the purchaser’s solicitor will transfer monies on trust then carry out searches to make sure there are no judgements against the property or the vendors.
If everything is ok and you confirm that the house is vacant and cleared out, your solicitor will authorise the release of the monies and you can collect keys from the Auctioneer.
What Happens After Closing – Mortgage Drawdown Ultimate Guide Ireland 2022
Your solicitor will arrange to stamp the deed and register the property. If you have an existing mortgage, they send your deeds to the Bank after the registration completes. If you do not have a mortgage, they will write to you to collect your deeds when they are registered.
Summary – Mortgage Drawdown 2022, Ultimate Guide
Mortgage draw down is a complex process so to summarise the steps that you need
- Review your loan offer conditions with your solicitor
- Request the house deeds from your current lender (if you are also selling or switching)
- Review the property contracts with your solicitor and sign
- Pay the outstanding deposit balance (if a new house purchase)
- Supply lender with any outstanding documents (mortgage protection etc..)
- Drawdown Mortgage
The key tip is chase, chase, chase. Don’t let your solicitor drive the process, make sure you are pushing and getting all your docs in on time.
The longer things take, the more that can go wrong.
That’s why getting partners that know the process inside out makes a lot of sense. moneysherpa advisors work with the best completions and solicitors in the country to make sure you get the best and fastest route to mortgage drawdown.
Next Steps – Mortgage Drawdown Ultimate Guide Ireland 2022
If you want to find out more about how to get a solicitor you should check out our guide on legal costs and the best solicitors here.
If you want to get the best solicitor for mortgage draw down, you can contact our recommended partners Jacob Law here.
You can get in touch with a moneysherpa advisor here.
