How do I apply for a mortgage?
A broker will also manage the process throughout and will ensure that everything is explained from the off.
If you have a more complicated application to go through, such as a bad credit rating, a broker will be able to go to the specialist lenders that aren’t available on the high street.
Agreement in Principle
As long as you have a rough idea of the value of the property that you’re looking at purchasing, you will be able to go for an Agreement in Principle (sometimes called a Decision in Principle).
Lenders will approve an Agreement in Principle after looking at your personal circumstances such as your occupation, income and deposit that you have available.
If you get an Agreement in Principle before you go to purchase a house and there is a chain involved, you will be in a better position as other parties won’t have to wait for your decision and will also see that you’ve already been pre-approved for the purchase.
Find your propertyNow that you have your Agreement in Principle, you can look at making an offer on a property, knowing that you have the financial backing of the lender to do so.
Your broker should recommend a solicitor or conveyancer to use to carry out the purchase, and these will usually liaise with the agent directly, unless it’s a private sale or an auction purchase.
There are a number of checks and valuations that need to be carried out on the property that you’re buying, and we advise that you don’t pay any fees until you’ve had the valuation back and approved, as it won’t be refunded if you have to pull out of the offer if something is wrong with the property. Instruct a valuation on the property
The valuationThe lender that you’re going with will always want to value the property themselves to ensure that it’s worth the value.
There are different types of valuation available ranging from a simple homebuyer survey to a full structural survey, so be sure that you choose the right one.
Mortgage offerOnce the valuation has been passed and all relevant documents have been approved, a formal mortgage offer will be issued to you and your solicitor.
This usually takes a couple of weeks, depending on the valuation results, but can often be even quicker.
Instruct your solicitorThis is where you will pay any upfront fees due to your solicitor and the contracts will be drawn up. This can be the most time-consuming part of the entire process but can be quicker if it’s only a remortgage.
Contract exchange and completion
After the contracts have been drawn up and all searches have been received, you will need to sign the contracts and exchange them, legally binding you to buying the property.
Once contracts have been exchanged, the money will be requested by the vendor’s lender and will prompt completion.
If you’re looking at buying a property and need help with the process, contact one of our expert advisers who will be able to talk you through the next steps.