The House Buying Process

The key steps in the mortgage application process

If you understand the application process you can be ready with everything the lender needs.

Find a Mortgage Adviser

http://www.comparethemortgagemarket.com

Its always beneficial to use an adviser instead of relying on your own bank to find you the best mortgage deal available. If you rely on your own bank then they will only advise on their own mortgages which will probablly be very limited. An adviser will have access to the whole of the market meaning access to hundreds of different lenders and thousands of different deals. You also have to consider that your bank will have a set criteria, or rules, that they will have to follow in order to lend. If you dont fit their criteria, you dont get the money! Different lenders have different criteria, which the adviser will know and be able to assist you with. Call 0208 1231337 or email enquiry@comparethemortgagemarket.com for more information.

Agreement in principle

Once you've found an adviser and have the idea of which sort of property you would like you may want to obtain an agreement in principal to show your affordability for a mortgage. A lender or mortgage adviser may offer to give you an 'approval', 'agreement in principle', 'decision inprincipal' or a 'mortgage promise' (these are all exactly the same). This sets out what the provider will be willing to lend you based on certain terms and conditions. This can be helpful when you are ready to make an offer on a property. The result of this is determined by some basic information such as name, address, date of birth, employment details, credit and credit history. If you are unsure of your credit history then you can always check online with EQUIFAX or EXPERIAN who are both the UK's credit agencies and can provide you with a detailed credit report.

Choose a solicitor or licensed conveyancer

You'll need someone to carry out the legal side of things - local searches, drawing up contracts and other legal paperwork. You could use a conveyancing solicitor or a licensed conveyancer. Some lenders have preferred solicitors, or you may be able to get a personal recommendation. At Compare the Mortgage Market we have links with a panel of solicitors and can provide independent quotes whether you use our mortgage services, buy a house from us, or not!

Make a full mortgage application

When you've decided to buy a property and had the offer accepted you will need to progress the approval in principal to a full mortgage application. They will also want to see evidence of your income, your identity, your current address and (where relevant) a previous lender or landlord's reference. They may also want a non-refundable fee to cover their costs and perhaps to pay for a valuation.
If you can't prove you've got a regular income (maybe because you're self-employed and don't have enough proof) you may be able to obtain an accountants certificate or SA302 self assessment tax return forms. Again, the adviser can help you choose which lender to use for the various proofs of income you ay be able to provide.

Property valuation

Your lender will usually have the property valued to make sure it's worth the price you've agreed to pay. If it's not, it could affect how much they'll lend you. It's advisable to get your own survey done too or to upgrade the lender's valuation survey to a more detailed one.

The mortgage offer

If the lender is happy with the valuation and supporting evidence that we submit on your behalf, you'll be made a formal offer - usually sent to you and your solicitor and ourselves. Once you (or your solicitor on your behalf) have signed and returned the offer documents, your lender is committed to providing the money. The mortgage offer usually requires you to take out buildings insurance, in case something happens to the property before you've paid off the mortgage.

Choose related insurances

Many advisers will try and sell all of the insurances as a package and also try and sell them as a condition of either the mortgage, or the mortgage advice. The minimum insurance that you are required to take out with a mortgage is Buildings insurance. The other insurances available are always recommended if you are in a position to afford adviseRs advise you have buildings and contents insurance, some form of life insurance and payment protection insurance to cover your mortgage. We provide quotes for all of these when we arrange your mortgage. We can also quote on these should you arrange your own mortgage or use another broker or adviser.

Exchange and completion

If you're buying, once you've got a formal mortgage offer, your solicitor can agree a date for exchanging contracts with the seller's solicitor. At this time you usually pay a percentage of the purchase price as a non-refundable deposit and commit to paying the rest on the agreed completion date (when the property becomes yours). Formal contracts are generally exchanged and then completion is set for the following week. This is not set in stone and exchange and completion can be carried out on the same day.

Call our office today for an informal chat on 0208 1231337