Signing the mortgage contract

This blog has been very property heavy recently but that’s because I have just signed and received the keys to my first ever property! This is an insanely exciting time but it’s also been a long process, made stressful by the fact that no one really tells you what to expect. People who have been through it tend to want to forget it as soon as possible and anyone who’s job it is to know tends to be unable to explain the process start to finish. So that’s what I’m trying to do.

The process, for me, so far:

1. Getting quotes for a home loan in Malta- are you eligible, how much can you borrow, at what rates and with what monthly repayments.

2. Signing promise of sale in Malta- you’ve found a property you love (and can afford) so now take it off the market with a promise of sale until the loan comes through.

3. Formally applying for the home loan in Malta- what documents you’ll need to provide.

4. The unexpected reasons you might be rejected a home loan in Malta (even if you were told you were eligible in the initial meetings!).

5. Setting the contract date (once you do get the loan formally approved!)

6. and todays post- what the contract signing meeting looks like!

What happens at the contract signing?

As both the purchaser (me!) and the seller were using the same bank for the home loan, the contract signing had 3 parts:

1. confirmation of details of the loan to me

2. the releasing of the property from the previous owner

3. the payment of the sale to the seller + deductions for the mortgage he still had with them.

All in all the contract was 6 pages, so my notary read the contract out loud for everyone to hear. This took the biggest chunk of time. Then you sign that contract

Then the bank took some time to lay out all the fees for the seller so he could get the final figure he was taking. They took the sale price, deducted taxes, agent fees and the outstanding mortgage amount then issued a transfer to his account of the remaining funds. I had to sign a paper detailing these amounts.

Who attends?

For me there was my notary (who set up the signing appointment with the bank), the seller could not attend so he sent someone who had power of attorney in his place, the agent who had worked on the sale for the seller also attended and someone from the banks side (it was neither my account manager nor any of the home loan managers I’d dealt with, but someone new).

Was there social distancing at the bank?

Due to the current pandemic we all had to wear masks the entire time (although the bank receptionist was not wearing a mask and insisted on whispering so you had to lean right into her to hear WTF she was asking) and we ended up doing the deed in the waiting room as the dedicated rooms were too small.

How long does the contract signing take?

First off, as you can expect, most people will be late. The seller, the agent and I were on time but my notary was around 15 minutes late and the actual bank person attending to the meeting was even later. Then once you get started there is quite a lot of material that needs to be read out and a lot of faffing around with documents, printing, scanning and signing. So to be on the safe side, I’d set aside 2 hours.

Will I get the keys?

Check with the agent/seller, but yes! You should arrange to take the keys at this meeting to avoid delays and setting up extra meetings. The property is officially yours so now is the best time for the seller to hand you the keys and make the purchase final. If they cannot hand you the keys on this date, for some reason, agree with them on why and for how long and have your notary write up a one pager confirming this and the date you will receive them.

The contract is signed, now what?

Now, enjoy your new home, but remember to:

1. CHANGE THE LOCKS- even if you can’t change the main door (e.g in a shared apartment complex) make sure to change them on your apartment door.

2. Switch the utility bills into your name- you and the seller will need to complete a form and send this to ARMS. I will detail a full post on this as it can also be a complicated process and ARMS will 100% scam you during it if you don’t know exactly what to check for (as we didn’t) and you’ll end up paying double the amount necessary for your bulls.