Financial institutions are eager to advertise the competitive mortgage interest rates they offer their customers. The frustration many purchasers encounter because of the length of time it takes to complete the mortgage application process is a fact less publicized. It is usual for purchasers to experience a wait time of up to four months, after an application is made, before the cheque is disbursed. Here ‘s a tip. At the start of the application process, if you provide the bank with the 15 to 18 documents it requires, you stand a good chance of having your mortgage application completed in far less time than is customary. The key is to become active in gathering the documents. Don’t depend on your lawyer solely to secure these items. Here is the list of documents all banks or building societies require.
A signed Agreement for Sale and the Deposit Receipt from your lawyer are the first two documents you require. Next, obtain a Photocopy of the Certificate of Title for the property. This document is available online at a cost of J$500 here. A Valuation Report assessing the property’s market value and a Land Surveyor’s Report of the boundaries of the property must be obtained. Ask the bank for its list of companies it approves to issues these reports. Commission these reports immediately. They should take no longer than a week to complete. Visit the nearest tax office and obtain an up-to-date Property Tax Certificate. Pay any outstanding property tax, if applicable, and submit to your lawyer, the receipt for reimbursement.
Purchasers of strata units, require the following additional documents: a Letter from the Strata Corporation confirming that the payment of property maintenance of the unit is up-to-date; a Copy of the cover note as Proof of Strata Insurance for the complex, and the last Water Receipt of the apartment.
Obtain an Income Verification Letter from your employer and the last two month’s pay slips. If self-employed, a Statement of Income is required. Proof of Age (Passport, Driver’s Licence, Birth Certificate or National ID), Tax Registration Numbers (TRN) and an N.H.T. Contribution Verification Letter (if applicable) are also required.
The financial documents required are Proof of Payment of an application fee of approximately 1.2% of the loan amount plus the Closing costs Payment for the mortgage – approximately 4-6% of the loan amount.
Undue delays are costly. The longer the delay, means the longer your deposit on the property sits idly with a lawyer gaining no interest for you. An inordinate delay may derail the timeline of your financial projection on an investment property you are purchasing. Excessive delays can be disruptive of your moving arrangements from one residence to another. Take control of the application process and submit all your documents to get your mortgage quickly.
About the Author
Sydney Davis is the Managing Director of Sydney Davis and Associates. He is a member of the Realtors Association of Jamaica and licensed by the Real Estate Board of Jamaica as a dealer, and property manager. His office is located at 80 Constant Spring Road, Kingston 10, Jamaica.