Home loan: how long to release the funds?
The deadline for the release of funds for a home loan generally takes place at the time of the signing of the authentic deed at the notary, ie a few days after the expiration of the 10-day reflection period.
From the mortgage request to the release of funds
Obtaining a home loan involves filing an application with a bank, which takes care of mounting the file, taking care to gather the supporting documents from the borrower. After studying and verifying the elements, the bank will decide on the financing of the expressed need. An agreement results in the sending of a home loan contract offer including the subscription terms, namely the amount requested, the rate, the duration and the monthly payment. It naturally includes the total amount due and other elements such as the cost of borrower insurance if the latter is taken out with the same organization.
The reception of this offer will imply a signature and acceptance (good for financing agreement) on the part of the borrower. From the signing of the offer and its return after the bank, there is a legal obligation period called reflection period of 10 days during which the borrower is free to reverse his decision. This period is incompressible and it is not until the 11th day that the funds will be released.
How long to get the funds released?
During a property acquisition, it is compulsory to go through the notary to draft the authentic act, it is an official document that will specify that the borrower is the new owner of the property concerned. The release of funds is generally planned for the date of the appointment with the notary, or even a few days before. It is at this precise moment that the release takes place, it is thus necessary to turn to the notary to obtain the date of appointment, which makes it possible to calculate the time necessary to obtain the funds of the mortgage.
Note that the funds are not paid into the borrower’s bank account, they are directly paid to the notary who is responsible for transferring the money to the seller’s account for purchase in the old. For house construction, a partial release of funds will be made to settle the purchase of the land, then calls for funds will be made as the construction progresses, the bank will be responsible for paying the funds to builder based on fundraising.
Loan offer signed and no date for the release of funds?
Your mortgage offer has been signed and you don’t know when the funds will be released? Here are the steps to follow
- Check the mandatory reflection period (10 days after signing the offer)
- Contact the notary to obtain the date of the appointment to sign the deed
- Contact your financial advisor who will inform you of the steps to follow