Mortgage and Registration: The Order of Steps When Buying with a Loan

Mortgage and registration: what to expect 🏠

Buying property with a mortgage combines bank procedures and official property registration. Understanding the sequence of actions helps avoid delays and legal risks.

1) Before you apply: check affordability and bank criteria 💡

• Assess your income stability and existing financial commitments.
• Ask banks about property requirements: acceptable building types, ownership status, and any restrictions.
• Tip: compare requirements from several lenders before choosing — it can save time and reduce unexpected refusals.

2) Find property and agree preliminary terms 🔎

• Agree a preliminary price and terms with the seller, including who covers taxes and fees.
• Consider a preliminary agreement that makes the purchase conditional on mortgage approval.
• Practical example: include a clause allowing withdrawal without penalties if the loan is denied.

3) Documents and legal due diligence 🗂️

• Lenders will request documents for both buyer and property: IDs, income proofs, title documents.
• A legal check confirms there are no unresolved claims, liens, or unregistered alterations.
• Practical step: obtain a recent registry extract and copies of all title documents from the seller.

4) Valuation and insurance 🏷️

• Bank appraisal sets the loan amount relative to the property’s market value.
• Insurance (property and sometimes title insurance) is commonly required — discuss acceptable providers and cover terms.
• Investor note: factor in potential repair costs and local market liquidity when relying on appraisal.

5) Signing the mortgage agreement and registering collateral ✍️

• The mortgage contract outlines repayment schedule, interest, and consequences of default.
• The lender usually registers the mortgage lien in the public registry to secure the loan.
• Carefully review clauses on early repayment, penalties and administrative fees.

6) Registering ownership when a mortgage exists 📜

• Registration typically records both the transfer of ownership and the mortgage lien.
• Confirm who files the registration, required payments, and how quickly the registry issues a certified extract.
• Keep copies of registration documents and confirmations from the registrar.

7) After registration: practical follow-up 🔎

• Keep all loan and registration documents in a safe place.
• Monitor payment schedule and communicate with the lender if circumstances change.
• If you plan to rent the property, confirm any restrictions related to the mortgage.

Quick checklist before signing ✅

• Verify bank requirements for the property.
• Obtain a preliminary loan approval.
• Complete legal due diligence and get a registry extract.
• Agree appraisal and insurance terms.
• Sign mortgage documents and ensure collateral is registered.

Tips for investors and people moving to Georgia ✨

• For investors: focus on resale potential and neighborhood demand.
• For renters: check local rules, taxes and service costs.
• When relocating: prioritize access to transport and amenities.

Need help navigating mortgage approval or registration? We assist with document checks, loan pre-approval and full transaction support to make buying property in Georgia straightforward and secure.

Useful link: https://buyhome.ge/en/search