In this part of the Mortgage in Israel series we investigate the final stages involving purchase and managing the mortgage process.
Funding of the Mortgage (Purchase)
When taking a mortgage for the purpose of purchasing a property, the bank will generally fund the mortgage only once all of the borrower’s equity has been paid. In the event that the borrower would like the bank to fund the mortgage prior to all of the equity being paid special approvals can be obtained.
The Mortgage Process
It is important to note that there are a number of steps involved in funding a mortgage. This includes, but is not limited to: ascertaining how to best structure mortgage financing for your specific situation, negotiating terms with the numerous lenders in Israel, obtaining a pre-approval, obtaining documentation required for an appraisal from the relevant municipal and government offices and/or housing companies, expedite requests from the seller’s attorney to the bank’s legal department for amendments to lien documentation (התחייבות מוכרים), collect executed documentation from the seller, obtain special approvals on behalf of the borrower from the bank (when necessary), record the “Cautionary note” in favor of the bank in tabu, record a “Mishkun” in Rasham Mishkonot, organize property and life insurance policies, renew approvals prior to funding, coordinate opening bank accounts for the borrowers when necessary and coordinate times for the borrower’s appointed POA to sign on the mortgage file (for overseas borrowers) and ensure that the terms of the loan listed on the mortgage agreement are correct.
If you are looking for assistance in navigating the mortgage process in Israel, while securing preferred interest rates and terms, call us today to schedule a complimentary consultation with a First Israel mortgage consultant. We are committed to saving our clients time and money.
First Israel Office: 02-625-2555
Find us on the web at: https://www.firstisrael.com/