Whether you are looking to get on the property ladder for the first time as a first-time buyer or you're seeking to explore remortgage options, the mortgage application process is one of the tasks you will have to go through.
It can be a sometimes be a stressful process, but ultimately, if you’re moving to your dream or forever home, it’s worth every single second - and these stressful times will be what you look back on for years to come.
However, we’re here to make that a lot easier for you.
We, below, have given you a complete explanation of the step by step process you will need to go through, along with some real helpful tips to make it that bit easier. Follow along to learn everything you need to know.
What is the Mortgage Application Process? (Step by Step)
There are some steps to a mortgage application that you may be expecting, but there is definitely more to it than you think. Thus, it’s important to understand it all first so you don’t get taken advantage of:
#1 - Knowing What You Can Afford With Your Deposit
Emotions definitely come into buying a home. If you see one you like, you might want to jump at it straight away. Yet, unfortunately, buying a home requires strategy, logic, and emotion working together in unison.
Therefore, using something like a mortgage affordability calculator can be game-changing, as it can give you real figures to predict what you can potentially afford and what your monthly repayments are going to look like. Communication with experts and your partner is vital during this period.
#2 - Knowing the Mortgage Options and People Available to You
There are so many options when it comes to buying a mortgage. What type of mortgage is best? What is the most affordable for my situation? What will I prefer mentally? And the list of questions goes on.
It’s so important to research and learn about all the different mortgage types (fixed, variable, tracker, discount, interest-only, etc.), because if you know all about them, you’re going to understand what the best deal is for your situation.
We’d recommend speaking to an independent mortgage broker, ideally locally-based, to benefit from a more personable service. And then, together, you can decide what your options are and first inkling on the type of mortgage you want when getting onto the property ladder.
#3 - Applying for Your Mortgage in Principle (MIP)
To get your mortgage in principle, all you’ll need to do is share your salary and what you spend each month typically, and then they will be able to give some predictions of what they’d be able to let you borrow from them.
Typically, you can find MIPs for free online, and if necessary, you can do more than one to get different opinions from different lenders. This is where you can decide on the mortgage you want to submit your application for.
#4 - Submitting Your Mortgage Application
Now that you have an idea of what lenders will let you borrow, and you’ve had a shop around for properties, you can now submit your mortgage application - which is typically done via a mortgage broker or adviser, similar to the team here at Bell Financial Solutions.
Depending on how you apply, you’re going to need the following:
- Proof of home deposit
- Some form of ID and documents
- Proof of your income (3 months of payslips and a P60)
- Utility bills for your current home (if applicable)
- Accounts if you’re self-employed (read our blog here if you don’t have accounts)
- The documents you have, if you have any benefits being paid to you
- Supply any other proof of income you have (side hustles, bonuses, commissions, etc)
Then, the mortgage broker of your choice can help you submit your application with the expertise they have to give you the best chance of getting the home you want.
#5 - Fingers Crossed, Reviewing Your Mortgage Offer
If you pass with flying colours and everything goes to plan, your broker or lender will send you a ‘mortgage offer’ to review.
Once you get this offer, you must read it. This is one of the biggest financial purchases of your life, so you need to make sure all of your expectations are met or even exceeded. If you like or don’t like it, you typically have 7 days to decide and tell them your final decision.
How Long Does it Take to Process a Mortgage Application?
In short, it varies for everyone, but you can expect it as a rough timeline to take between two to six weeks. Most of the time, between two and four weeks, but in certain circumstances, it can take longer.
During this period, you of course, have to complete your mortgage in principle, which should take no more than 48 hours, and during the application, your lender may organise a valuation survey just to make sure the property is actually a safe purchase for you.
Key Point to Note
Just remember that when your application is done and approved, you don’t move into your home right away. You still need to go through conveyancing, a property survey, and exchange of contracts first.
Are Mortgage Applications Processed Through Weekends?
Whether or not your mortgage application is processed at weekends all depends on the lender’s opening and closing hours. Before you apply, if this is a game-changer for you, make sure to ask them this question when you’re going back and forth with them.
Looking for Guidance During the Process of Mortgage Application?
Looking for help with the mortgage application process? We understand that the mortgage application process can be extremely daunting, but, as we’re so fortunate to receive 5 star reviews from customers around the country, our Ce-Map qualified brokers can continue to help to simplify and secure the best mortgage deal for you.
If you want to get in touch with us today to arrange your initial meeting, and make sure you go about this process in the best way, you can do that by calling us on 0161 791 4757 or using our contact form.
.avif)
.avif)
