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One of the most awaited hours of a mortgage is it: signing the contract with the bank. This means that the institution is committed to lend you the money you need to make the purchase of the property viable. But did you know that this is not the last step of a mortgage loan? In order for the seller to be paid, it is still necessary to complete a few more steps.

In this article, we will explain in detail how issuing, signing and registering a financing agreement works. We’ll show you how all these processes can be easier if you have a credit counseling like Loft Cred.

Throughout this text, you will find:

When is the financing contract issued?
How long does it take to sign the financing contract?
How does signing a contract with Loft Cred work?
What are the necessary precautions when signing the financing contract?
What is contract registration and what is it for?
How to make it easier to register your loan agreement with Loft Cred
When is the financing contract issued?

The issuance of the financing contract with the bank is one of the last stages of the credit operation, but it is not the last. After signing the document, together with the buyer and the creditor bank, you will still need:

Paying the Property Transfer Tax (ITBI)
Take the contract to the Real Estate Registry Office where the apartment has its registration
Pay notary fees
Register the transaction in the property registration
Take the contract and the updated property registration document back to the bank, so that the credit is released

On the other hand, when signing the contract, you have already gone (and were successful) through the following steps:

Credit analysis (first step, in which the bank assesses whether you have enough income and a good payment history to trust you)
Property valuation (made by an engineering company, which issues a report with the property value and other technical aspects about the apartment)
Legal analysis (verification of documents and forms sent to the bank)
How long does it take to sign the financing contract?

According to Rafael Godoi, specialist in real estate credit at Loft Cred, in a negotiation process with the bank with no pending issues to be resolved, the signing of the contract takes about 30 days from the first contact with the institution. Of course, this time can vary according to the client’s profile and any issues that arise during the process.

How does signing a contract with Loft Cred work?

With Loft Cred, signing the contract is easier: you can do it without leaving your home. The contract is sent to you via a carrier. The exception goes to Bradesco bank, which according to Rafael Godoi, requires the presence of the client at the branch for subscription. Anyway, this scheduling is also done by our team.

“The bearer withdraws the contract in the legal department and sends it to the real estate agency or to the buyer’s or seller’s house. Wherever they choose to sign. In the case of Bradesco, Loft Cred organizes the subscription at the branch where the buyer has the account”, explains Rafael.

After that, Loft Cred collects the contract copies, the bank’s power of attorney and the Real Estate Transfer Tax (ITBI) copy, which you will have already paid. Our team is the one who issues the payment slip for this tax for you.

All this documentation will be taken to the competent Real Estate Registry Office. Thus, the transaction and fiduciary alienation (bank ownership of the property) will be registered in the property’s registration. This procedure opens the way for the bank to finally release the financing money into the seller’s account.

What are the necessary precautions when signing the financing contract?

Rafael Godoi, from the Loft Cred team, points out the main precautions when signing your contract. According to him, it is necessary to pay attention mainly to the personal information that the bank puts in the document. Generally, the contract is 30 pages long – most of them talking about the general clauses of the service that the financial institution will provide. It is the summary table, about two pages long, that you have to devote your attention to.

“As it is an adhesion contract, most of the clauses really talk about what you are adhering to in real estate financing. You must pay attention to whether the details of who is selling and buying are correct and that the values ​​are correct, since you register the contract as if it were a public deed. Then you will no longer change the values ​​that are there”, he explains.

According to Rafael, if a minor data is wrong, it is even possible to make a correction to the contract without reversing it, but this can delay the financing process. “The notary will return saying that your name is wrong, for example.


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