Buying An Existing Home
Once you have located a home which you would like to purchase.
- Get tentative approval for your mortgage financing before making a down payment on the property.
- Submit a written offer to purchase the property, prepared by your attorney or real estate agent.
- The seller must provide you with a copy of the proper deed for the property.
- Have an independent search done on the property to determine that it is free from all encumbrances.
- Have an attorney prepare a purchase agreement between yourself and the vendor and have it properly signed and duly stamped.
- The purchase agreement states the price, down payment amount and terms and conditions regarding final settlement of the purchase transaction.
- The purchase agreement usually gives you ninety (90) days from the date of down payment in which to settle the mortgage details.
- Under the terms of these purchase agreements, once you make your down payment, the seller of the property must assign the insurance coverage on the property to you.
The first step towards getting a mortgage loan is to fill in a Mortgage Application Form that can be obtained from the Bank. The following supporting documentation is required.
- Letter from employer stating status, breakdown of income, allowances and length of service, as well as a recent salary slip (if any).
- Certified statement of income for self-employed persons.
- Copy of deed of land and deed of mortgage (for prospective home).
- Valuation report – (professional valuation of prospective home).
- Means of identification – proof of citizenship – I.D. card, passport, driving permit.
- Up-to-date receipts for – land rent, house rates, lease rent, water & sewerage rate.
- Statement on existing mortgage loan (if any).
- Bank statement/credit union statement verifying savings and investment.
- Bank statement/credit union statement verifying loan balances & monthly payments.
- Statement on life insurance policies.
- Offer by vendor and/or agreement to purchase.
The following additional supporting documentation is required for an application to purchase townhouses or condominiums.
- Articles of Association of the management company.
- Letter on maintenance charges
- Proof of up to date payment of maintenance charges
- Copy of blanket homeowners insurance policy issued in the name of the management/administrative company
- Share certificate of the existing homeowner
Building A New Home
Building a new home involves a lot of planning and requires more documentation for submission with a mortgage application. It is advisable that you ascertain what mortgage loan you can qualify for before making plans to build. In addition to the above information, the following is required.
- Building plans
- Town and country planning and local government authority approval
- Builders’ estimates
- Quantity surveyor’s report
- Pre-construction valuation of property