Are you in the process of buying a house or have your sights set on a property? Obtaining a mortgage is a crucial step, and HuisAssist is here to guide you through the process and ensure you’re well-prepared. HuisAssist will walk you through the 7 important steps involved.
> The different types of mortgages
Step 1: Calculate your maximum mortgage
Before you can make an offer for obtaining a mortgage, it’s essential to determine how much you can afford. In an orientation meeting with an independent mortgage adviser, they will calculate your approximate borrowing capacity and provide information on different mortgage types that align with your financial situation.
Step 2: The advisory meeting.
Once your offer for obtaining a mortgage is accepted or when you’ve signed the sales contract, schedule an advisory meeting with your mortgage consultant as soon as possible. During this meeting, important topics will be discussed:
- Your financial situation about your new home, and advice on the mortgage that best suits your needs.
- If your dream home exceeds your budget slightly, the adviser can provide insights into tax-free gifts, family loans, and joint and several liabilities.
- Insurance considerations such as death risk insurance, home contents insurance, building insurance, and disability insurance.
- The National Mortgage Guarantee (NHG), its conditions, and whether you qualify for it (for homes up to €405,000).
- Renovations or sustainability improvements and the possibility of borrowing an additional amount for these purposes.
Step 3: Interest rate offer.
Following the advisory meeting, your advisor will provide a personal financial advice report. If you agree with the proposal for obtaining a mortgage, the advisor will request the BLG Interest Rate Offer, which includes an interest rate proposal and a list of required documents for the mortgage application.
The mortgage lender will assess your application based on the information provided by your advisor, including your income, property details, and any previous loans listed with the Bureau Krediet Registratie (BKR). Once everything is in order, you’ll receive the BLG Interest Offer (typically within two working days), valid for four weeks.
Step 4: Required documents for your mortgage application
To finalise your mortgage application, the lender will request specific documents. Refer to the BLG Interest Rate Offer for a comprehensive overview of the required documents. Income and property information is typically the most important, so make sure to clarify the expectations with your mortgage advisor.
Taking out a mortgage involves several steps and document submissions, but with the guidance of HuisAssist, you’ll have the support and information you need to navigate the process smoothly.
Step 5: Mortgage approval
After you have submitted all the required documents, the mortgage application will be assessed. If everything is in order, you will receive the final offer, also known as the binding offer, through your advisor in approximately two weeks. The sooner you provide the documents to the mortgage lender, the quicker you’ll receive the notification!
You will have a two-week timeframe to review and sign the offer. Once the signed offer is received, the financing is officially approved, and you can proceed with the sale.
Step 6: Heading to the notary for the transfer
With your mortgage approved, it’s time to involve the notary who will handle the necessary paperwork. The notary will prepare the mortgage deed and the final bill, known as the settlement or settlement note. This document outlines the incurred costs and specifies the amounts to be paid or received by each party involved. In the mortgage deed, you establish the mortgage right, granting the bank the authority to claim and sell your home if you fail to meet your financial obligations.
On the day of the transfer
Your advisor will inform you that you and the seller can schedule an appointment at the notary for the house purchase, also known as the day of the transfer. During this appointment:
The notary will oversee the transfer of the house, documenting it in the conveyancing deeds.
You will sign the mortgage deed and the deed of pledge (if there is mortgage-linked life insurance).
You will sign the money loan agreement, which details the mortgage terms such as the amount, repayment method, term, and interest rate. If you have allocated a portion of the mortgage for renovations, you will sign a building deposit deed. Feel free to ask your advisor or the notary for explanations regarding the various documents you will be signing. You must understand the meaning and implications of each deed and agreement.
The expenses associated with the notary’s services are typically covered using your funds. Amounts paid from the mortgage will be handled by the mortgage lender.
Step 7: Making mortgage payments
Depending on the type of mortgage, mortgage payments begin shortly after you close on your home purchase and the loan funds are disbursed. Typically, mortgage payments are made every month. The first payment is often due one month after the loan closing date. For example, if you closed on your mortgage on July 1st, your first mortgage payment would typically be due on August 1st. However, the exact timing may vary depending on the specifics of your loan agreement.
It’s important to review the terms and conditions of your mortgage agreement and consult with your mortgage advisor for precise information regarding your payment schedule. They will provide you with specific details about when your first payment is due and how often subsequent payments will be required.
Building deposit for renovations or new construction
If you plan to renovate your house or if it is yet to be built, you may have borrowed an additional amount to cover the associated costs. This extra money is held in a separate account by the mortgage lender known as a construction deposit. Payments from this deposit will be made as you submit the necessary invoices or bills.