If you have identified a mortgage lender that you prefer as well as the amount that you want from the lender, here are some important information that can help you during the mortgage application process.
1. Applying for an agreement in principle
An agreement in principle shows that the lender is committed to lending to you and the amount. Applying for an agreement in principle involves filling a form asking you to give your income, employment status, financial commitments and the property that you want to buy. The lender will run a credit check depending on the information that you give to decide how much they are going to lend you.
2. A solicitor
A solicitor helps you in conducting some searches, drawing contracts as well as other legal paperwork. Some lenders are strict on this and need you to have a conveyance solicitor to undertake the valuation process.
3. Formal mortgage application
You need to complete an official mortgage application form giving details about your; name, current address, income, previous lender (if any) and other personal details. You are also required to pay a non-refundable fee to gather for valuation process and other costs.
4. Supportive documents
You are also required to provide some supportive documents which include; pay slips for the last three months, bank details, tenancy reference and documents that proof your identity and address.
5. Valuation process
Lenders always want a valuation on the property to be done to determine if the amount you quoted is worth it. Thus it is important to ensure that the lender’s valuation is upgraded so that you get the exact amount as that you had found during your own survey.
6. Mortgage offer
The lender will then send you and your solicitor a formal mortgage form to be filled and returned to them. Once they get the form dully signed and returned by you and your solicitor plus the other documents then the lender will give you the mortgage.
7. Completion process
Your solicitor will ensure that all things are ready for the completion process. This include; the mortgage contract as well as the amount that the lender will give you and that you will deposit.