Once your loan has been approved, here are some other steps that are now necessary.
1. Assuming you or the Mortgage-Lending-Institution has not done so already, you should now instruct your attorneys to prepare the relevant Deed of Conveyance or Assignment. As mentioned in an earlier post, if the attorney that is preparing your Deed of Conveyance or Assignment is the same one as the bank is using to prepare the Deed of Mortgage, then the fees for the latter will be discounted 50% assuming the property does not fall under the Real Property Act (RPA) formerly Real Property Ordinance (RPO).
The attorneys will ask for several documents and shown below, are the more common ones. Additional documents could be required depending on your circumstances. If you would like a hard-copy of the below list, please feel free to contact us.
2. Assuming the property will not be insured under a blanket policy of the Mortgage-Lending-Institution, you should make arrangements to have the building fully insured. In your valuation report, the minimum sum needed for insurance will be indicated. It is a good idea to increase this sum by about 10% to cater for things like inflation during the coming year, professional fees and removal of debris.
The insurance policy will also have to have a special clause in it noting the interest of the Mortgage-Lending-Institution. You do not have to worry as the Insurance Company will be familiar with it. While you do not own the home as yet, the insurance company can start the process of covering you and noting your current interest in the home in case something happens in the interim.
You may want to consider the services of a reputable insurance broker to guide you as to which insurance company to select.
3. There are also other things on a personal side that need to be done. For a hard-copy of this list, please feel free to contact us.