March 2026 · 7 min read
Getting a mortgage approval is a major milestone — but it is not the finish line. Between the bank's approval and holding the keys, there are several important steps that require your attention and, if you are purchasing remotely, advance coordination.
This article walks you through everything that happens after you receive your mortgage approval: reviewing the commitment letter, finalizing the purchase, the closing process, and what to expect in the first weeks of ownership.
Review the Commitment Letter
Day 1–3
Title Clearance & Contract Finalization
Week 1–2 (parallel)
Property Insurance
Week 1–2 (parallel)
The Closing
Week 2–4
Title Registration
2–6 weeks post-closing
First Mortgage Payment
First month due date
Step 1 — Review the Commitment Letter Carefully
The bank's commitment letter (carta de compromiso or carta de oferta) is the formal offer of mortgage financing. Before you sign anything, review it in detail with your attorney.
Approved amount vs. requested amount
Banks sometimes approve less than the requested amount if the appraisal came in lower than expected. Confirm the approved amount covers your financing need.
Interest rate and type
Confirm the rate (fixed or variable), the initial rate if variable, and any reset schedule. Ensure it matches what was indicated during the process.
Loan term
Verify the amortization period matches your expectation. A 15-year vs. 20-year term has a significant impact on monthly payments.
Conditions precedent
Most commitment letters include conditions that must be met before funds disburse: final appraisal, clean title, proof of property insurance, etc. Note every condition.
Expiry date
Commitment letters typically expire in 60–90 days. Your closing must occur before expiry. If the closing delays, you may need to request an extension.
Prepayment terms
Understand any prepayment penalties. Some DR loans penalize early payoff in the first 3–5 years.
Step 2 — Title Clearance and Purchase Contract Finalization
While you are reviewing the commitment letter, your attorney is working in parallel:
- ✓Final title search: confirm the Certificado de Título is clean, free of liens or disputes.
- ✓Seller documentation: proof of no outstanding IPI, no condominium arrears, no utility debts.
- ✓Purchase contract finalization: update the promesa de venta if needed.
- ✓Translation and apostille: finalize any untranslated foreign documents.
Step 3 — Property Insurance (Required Before Disbursement)
Dominican banks require property insurance (seguro de hogar) as a condition of mortgage disbursement. The policy must name the bank as co-insured (beneficiario hipotecario).
You arrange this directly with a licensed insurance company. Coverage requirements vary by bank but typically include fire, natural disaster, and structural damage. The annual premium for a mid-range residential property runs $500–1,500 USD depending on property value and coverage.
Step 4 — The Closing
Closing (firma o acto de venta) takes place at the notary's office. All parties — buyer, seller, bank representative, and notary — are present or represented by legal proxy.
- 1.The notary reads the deed of sale aloud and all parties sign.
- 2.The mortgage instrument is signed separately, acknowledging your debt obligation.
- 3.You deliver the closing funds: down payment, transfer tax, legal fees.
- 4.The notary stamps, signs, and certifies all documents.
Closing remotely?
If you are closing remotely (not present in the DR): you must prepare a poder notarial (notarized power of attorney) in advance, authorizing your attorney or a trusted representative to sign on your behalf. This document must be apostilled in your home country before being submitted to the Dominican notary.
Step 5 — Title Registration
Closing is not the legal completion of the transfer. The notary submits the signed documents to the Registro de Títulos (title registry) for formal registration.
This process typically takes 2–6 weeks. Until registration is complete, the transfer is pending. You are the effective owner — the seller cannot sell to anyone else — but the formal certificate in your name is not yet issued.
Step 6 — Your First Mortgage Payment
Mortgage payments in the Dominican Republic are typically due monthly. The bank will provide a payment schedule (tabla de amortización) showing each payment, the split between principal and interest, and the declining balance.
If you are based outside the DR, set up international wire transfer instructions with your bank. Most Dominican banks also offer online banking portals that allow transfers from linked accounts. Confirm the payment method and currency instructions before closing.
Frequently Asked Questions
Start the process — keys in 30–45 days
A well-prepared application submitted to multiple banks simultaneously consistently closes in 30–45 days.
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