Ready to buy a home?
First thing you will need to do is find the right mortgage deal.
When considering the type of mortgage that works best for you and figuring out how long to take the mortgage out for, a mortgage broker can help you make these decisions and go through all the information with you to help best decide. Choosing the right broker is also very important.. a good broker can give advice on providers most likely to accept your application and what type of product best fits your requirements.
Are you looking for a recommended broker? Get in touch with mint homes for their recommended mortgage broker.
If you are a first time buyer and never had a mortgage before, getting professional mortgage advice really is a good idea. Remember to ask your broker to calculate the total cost of your mortgage, explaining all the charges and fees – and not forgetting any conditional charges and fees such as early repayment charges. You can also find mortgage deals yourself – you can do this by shopping around online or speaking directly with different lenders. Some key advice is do not just go for the first mortgage you find.. shop around to find the best deal!
Once you have found your perfect mortgage, prepare your documents for application stage.
You will need to provide proof of ID, proof of address, up to 6 month’s worth of bank or credit card statements and details or your employment. Only certain documents will be accepted, most of the time originals rather than scanned or printed versions (except bank statements- these tend to be accepted with a PDF or online statement).
You can then consider getting a mortgage decision in principle.
Once you have found a morttage deal that suits you and your circumstances, you can get a decision in principle also known as an agreement in principle or AIP/DIP. This is where the lender agrees ‘in principle’ to give a you a mortgage, subject to their final checks on you as a buyer and their valuation report of the property you intend to buy.
Getting an AIP usually involves a credit check, and if you offer on a property you intend on buying, giving your AIP to the marketing agent when offering is a great way for them to qualify your offer. mint homes will always ask the potential buyer for an AIP and if you haven’t got one, asking for the details of the broker / bank you are using in order to qualify any offer to put forward to our Vendors. With each lender being different, an AIP usually lasts for 6 months. If your property search takes longer than planned, you will probably need to get a new AIP.
Making the formal mortgage application.
Once you’ve had your offer on your dream home accepted, this is when you should formally apply for a mortgage. If using a broker, they will arrange this for it.
This is when the mortgage lender conducts a valuation on the property you intend to buy and confirms to them the property is worth what you are paying for it. At this stage, the lender will also do a thorough check through paperwork you have provided and the credit record. This search will also appear on your credit file.
If the lender turns you down at this stage, find out why. You could apply through another lender who doesn’t take that ‘why’ into too much detail. Making several mortgage applications could significantly damage your credit score, therefore having a good mortgage broker onside is beneficial as they can guide you on this.
Waiting for your formal mortgage offer.
If the lender is happy with all information provided and the application, it will make you a formal mortgage offer! Mortgage offers are valid for approx. 6 months and remortgage offers typically 3 months (varies between lenders). You should receive your mortgage offer within four weeks of applying, again varied on how much further information is needed after the application stage. The process could also be held up if there is an issue with the valuation, or the lenders processing center is busier than usual. Additional information or documents could be needed via yourself or if the application is particularly complicated.
Once you have your formal mortgage offer, your conveyancer will arrange for the mortgage funds to be transferred from your mortgage lender to the Vendor you are buying the property from on the day of completion!