When you start looking into purchasing your first home it can all seem very overwhelming. However if you have an idea of how the mortgage application process works this can help you know what to expect.
Once you have your deposit saved you should book an appointment with an Independent Financial Adviser. By seeing your adviser at the beginning they can give you an initial indication of how much you might be able to borrow so you know your budget. It is best to take your latest three months payslips or last two years accounts if you are self employed so that your adviser can.
You might also want to get a credit report at this stage to ensure there are no issues. Your adviser can do a decision in principle which is the first stage of the mortgage application. If this is accepted you can often get a decision in principle certificate. Some estate agents may require this as proof you can borrow the monies to purchase the property you are making offers on. However the decision in principle does not mean you will definitely be able to get the mortgage, nothing is certain until you have a mortgage offer.
Once you have an offer accepted on a property your adviser can start the full mortgage application process. At this point you will need to find a solicitor so that their details can be input into the mortgage application. You will also need information such as the property address details, what type of property it is, whether it is leasehold or freehold and estate agent details etc.
Your adviser will need a number of documents partly for their own money laundering requirements and also for the mortgage lender. Things to expect to be asked for are identification both photo ID and address ID such as a passport or driving license and a utility bill. The mortgage lender is also likely to ask for things such as bank statements, payslips and P60’s. However this list is not exhaustive and all lenders differ in what documents they require.
Once the application is submitted the lender will then assess this and go out to value the property. If everything is okay with the application, your documents tally up with what they’ve been told previously and the house is valued at the price you are buying it for and has no cause for concern, the lender will then supply you with a mortgage offer. Once the mortgage has been offered the solicitors are then sent a copy of the offer then they can begin processing the legal side of your mortgage, and getting you in your lovely new home!
Sammy McCann BSc (Hons), Cert CII (MP)
13th February 2017