Got Mortgage Approval? Great ... but look out for the Small Print!

Mortgage Approval ? Watch out for the Small Print...... Now that there may be some movement in the house purchase/sale market.You the purchaser has to be very careful in what you are signing up to when you get a Loan Approval Form. Very often people are so glad to get a Loan Approval that they do not pay attention to the terms which they have signed up for. Look carefully at the terms of the loan and read carefully through it. Ask the bank to explain anything that you do not understand. Do not be panicked into signing something that you will be left with for the next 20-30 years. For example, can you figure out what amount you willpay if there is an increase in rate or if you are lucky enough to pay off your loan in advance? What does the agreement say on this? Is the solicitor you’re employing acceptable to the lender? In the past 10 years some solicitors have let down the financial institutions by not honouring their undertakings. Remember the undertaking is the basis on which the solicitor receives the money, pays for the house and agrees to give the bank all the documentation necessary to have a proper charge on your property. It appears some solicitors were not as efficient as others and the bank will therefore only take undertakings from certain solicitors. You should check this out before you appoint a solicitor. At Michael Monahan Solicitor all banks take our undertakings -- we do what we say we do! All solicitors acceptable to the bank must have Professional Indemnity cover enforce so ask to see it before you commit yourself to a solicitor. A solicitor may have a type of Insurance Cover called "Assigned Risk Pool" but this may not sufficient for the bank and again it is important to find this out before you commit to that firm otherwise you may get half way down the road to discover that the bank will not accept your solicitor and you will have to start again with another. Study in detail the estimate for fees and outlays you receive. The solicitor carries responsibility for getting the title to your property correct for the bank yet their fee for this is usually the smallest of three amounts you are involved with. If you have an Auctioneer their fee is usually calculated in percentages even in 2013. The Revenue although now charging only 1% on property purchases will take VAT at 23% off you together with further outlays to the Property Registration Authority (Land Registry) all this adds up to quite a sizeable tax on your intended purchase. As in all matters the devil can be sometimes in the details (small print).