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What Is Mortgage Drawdown And How Long does it Take? – Mortgage Drawdown Ultimate Guide Ireland 2022

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. Solicitors need make sure that they cover all legal and planning issues so that there will not 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 money.

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  1. How long will the process of a mortgage drawdown last – Mortgage Drawdown Ultimate Guide Ireland 2022
  2. What Can Delay A Mortgage Drawdown – Mortgage Drawdown Ultimate Guide Ireland 2022
  3. What Happens When You Get The Contracts – Mortgage Drawdown Ultimate Guide Ireland 2022
  4. What Happens After You Get The Advice Letter – Mortgage Drawdown Ultimate Guide Ireland 2022
  5. What Do You Need When You Sign – Mortgage Drawdown Ultimate Guide Ireland 2022
  6. Are You Committed Once You Sign – Mortgage Drawdown Ultimate Guide Ireland 2022
  7. When Do You Close And When Do You Pay – Mortgage Drawdown Ultimate Guide Ireland 2022
  8. 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

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. 

The 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. 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 contracts whilst waiting for your loan offer.

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What Can Delay Mortgage Drawdown ? Mortgage Drawdown Ultimate Guide Ireland 2022

Once the sales advice is received, the response to the mortgage draw down is usually around 10 days for the contracts to be sent by the vendors solicitor.

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 for an extension. 

Your solicitor will request these as they need to make sure that the house complies with all Planning and Title maters.

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.

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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. 

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What Happens After You Get The Advice Letter- Mortgage Drawdown Ultimate Guide Ireland 2022

Once you get the advice letter 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. 

HOW LONG DOES THIS TAKE? On average it takes two weeks to get replies and arrange to get contracts signed.

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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. 

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. 

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Are You Committed When You Sign? – Mortgage Drawdown Ultimate Guide Ireland 2022

Once you sign the contracts are sent to the Vendor’s solicitor for signing. 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.

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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 to drawdown your loan cheque are with your mortgage provider. 

Once your solicitor has all the monies they will arrange to mortgage draw down. 

The Vendor’s solicitor then sends your solicitor all the Title documents and transfer monies and carry out searches to make sure there are no last-minute judgements against the property or Vendors. 

If everything is ok and you confirm that the house is vacant and cleared out, your solicitor will release the monies and you can collect keys from the Auctioneer. 

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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 a mortgage, they send your deeds to the Bank. If you do not have a mortgage, they will write to you to collect your deeds when they are registered.

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Summary – Mortgage Drawdown 2022, Ultimate Guide

Mortgage draw down is a complex process so to summarise the steps that you need

  1. Review your loan offer conditions with your solicitor
  2. Request the house deeds from your current lender
  3. Review the property contracts with your solicitor and sign
  4. Pay the outstanding deposit balance (if a new house purchase)
  5. Supply lender with any outstanding documents (mortgage protection etc..)
  6. Drawdown Mortgage

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.

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