Applying for financing may sometimes seem an intimidating task, especially when you do not know what to expect. Our Mortgage Process makes acquiring your home an easy and rewarding experience.
There are 5 easy steps to applying for your mortgage.
Once you’ve decided to take the next “adult” step in your life and purchase or build a home, the process can seem endlessly overwhelming and you may not be sure where to even begin! TTMF is here to help.
The first step you must take is determining your affordable price range. TTMF’s Pre-Qualification Process analyses your financial information to calculate your price range.
A Pre-Qualification interview permits us to take an early look at your financial position. At this interview, you are assessed on the basis of age, income and existing financial commitments. The resultant mortgage amount you can afford will be detailed to you in a Pre-Qualification Certificate.
Getting your Pre-Qualification Certificate eliminates doubt, second-guessing and unpleasant surprises. Once we have determined your affordable price range, you will be able to conduct a more focused house or land hunt, and seek out properties that satisify all the requirements on your wish list, without breaking the bank.
Be sure to bring your ID, most recent Pay Slip and a Job Letter. If you are considering a joint purchase, both yourself and your co-borrower must bring this information.
Start by approaching TTMF to be pre-qualified. Pre-Qualification allows us to review your affordability. The resultant mortgage amount you can service will be detailed to you in our Pre-Qualification Certificate.
You qualify by satisfying our lending criteria. Some of our mortgage programmes require that you occupy only the mortgaged home. To qualify, you should:
*Non-residents may be approved
Interviews are arranged for submitting your official application for financing. You must present all valid documents specific to your type of loan application and have the following fees for payment:
If the documents satisfy the requirements, you must sign our Mortgage Application Form. You will then be directed to pay the above fees.
Processing of your application will begin immediately as follows:
Within 1 work week, our Offer of Mortgage Loan will be ready for your acceptance.
Our Letter of Offer and Loan Agreement will be addressed to all mortgage applicants and provides a discretionary period of 14 days for signing and payment of requested fees. The document outlines the applicable details of the loan being granted, such as:
The Letter of Offer also summarises some standard mortgage clauses which will appear fully worded in the formal Mortgage Deed to be presented for your signature. You may review our form of Mortgage Deed by contacting the assigned attorney for a draft copy before signing and accepting our mortgage offer.
Make sure that you and any other applicants read this document carefully and get any clarification before signing. The signatures indicate agreement to fully observe the terms and conditions as outlined.
Once you are comfortable, you and your co-borrowers must sign and date all copies of our Letter of Offer as well as deduction authorisations for either your employers or your bankers, then arrange with our offices to pay the relevant fees.
After you have accepted the offer of financing, instructions are sent to the assigned attorneys to prepare the Mortgage Deed and the other legal documentation. Bear in mind once you submit the signed Letter of Offer, attorneys’ fees, the partial month’s mortgage interest and all outstanding processing Documents are due.
Where necessary, you may be asked to present updated Property Rates and Tax Receipts along with an updated WASA Clearance Certificate to confirm that these Property Taxes have been settled up to the time of your receiving title. You become liable for these payments from the date of title transfer and TTMF will ensure that the relevant rates and taxes are paid on time.
Our attorneys will arrange a date with you to the sign of the legal documents. Please note that on the day you sign the Mortgage Deed, you must have funds available to pay the balance of the legal fees and the partial month’s mortgage interest. The amounts will be advised beforehand and invoices will be presented at your appointment. Our attorneys are authorised to receive your payment of partial month’s interest on our behalf.
The partial month’s interest on the Mortgage Loan is calculated on the Principal Amount financed, at the per annum rate granted, and pro-rated for the number of days beginning from the mortgage signing to the end of the month.
You are granted a loan of $100,000 @ 6.00% per annum and you sign your mortgage deed on January 19, partial mortgage interest is $197.26, as follows:
(100,000 X 6%) / 365 X 12 = $197.26
You will have the opportunity to review the documents and obtain clarification of the contents where necessary. When satisfied, you and any other loan applicants must sign in the presence of the attorneys or their designate.
Your payments of the fees and costs will be receipted at that time and our cheque for the approved mortgage funds can then be delivered. Where you need to exchange the funds for ownership of property, arrangements can be made for the physical exchange of keys at the Attorneys’ office or on a specific date thereafter.
If you are carrying out construction or improvement works, a partial amount of the approved funds will be delivered at the signing. This amount will satisfy any purchase agreement or outstanding debt as well as deliver funds for the first phase of work to you.
If you or our co-borrower are out of the country, you have two options with regards to closing your transaction: you can either have someone in the country have a Power of Attorney to do business on your/their behalf or you can liaise with our attorneys to have them send the documents to you via courier. The costs of shipping has to be borne by you.
Mortgage loans are finalised after receipt of:
You need to file statutory declarations of ownership of the Property with the relevant authorities. Our attorneys will deliver to you a legal document called a ‘Return of Ownership’ which you must file with the District Revenue Office (DRO). This alerts the DRO to the change in name of owners and assigns an account for receiving your payment of annual house, land and buildings taxes. If you build, the DRO will assess your property and advise an Annual Taxable/Ratable Value (ATV or ARV) for your property via a Certificate.
After filing with the DRO, you must file with the Water and Sewerage Authority (WASA) to register your ownership of the property and for the assignment of an account for payment of your quarterly water and/or sewerage rates. If you build, your property WASA rates must be upgraded on the basis of the DRO advised ATV/ARV. A WASA advisory statement or a bill will be given to you.
You will want to take advantage of any reduction in your tax liability by filing a new TD1 form with the Board of Inland Revenue. A supporting Interest Statement can be arranged at your request. Yearly statements will be automatically prepared for your account effective January of the coming year.
Ensure that your selected method of payment to TTMF takes effect on time, in keeping with your contractual agreement with the TTMF. Regular monthly payment can be made through Salary Deductions, where available, Direct Debit, post dated cheques or over the counter at our Offices.
Your first monthly installment becomes due on the last day of each month and shall commence as follows:
Your Letter of Offer & Loan Agreement provides for early repayment without penalty and for lump-sum payments to principal during the life of the mortgage.
Several declarations are required when you get your home: