Posted on Mar 12, 2015

Getting from A:B – Understanding the Mortgage process

Daunted by the Mortgage process?

There’s no need to be, because you are not alone.

First, second or tenth time. Having someone scrutinise your finances is never going to be a comfortable experience.

But we can help reduce some of the stress and worry by giving you an overview of the process so that you know what to expect.

Quick Caveat

Regardless who you use as your Broker, the overall mortgage process is the same (apply, wait, offer, wait, complete). The service around it may differ.

The following is how we do things at Michael Usher’s.

Step One – Getting to know you

We’re with you for the long haul.

Our first meeting together helps us get to know you, your aspirations and how these fit in with your financial position.

If all the pieces fit together, then by the end of the meeting you should have an ‘Agreement in Principle.’ This is a certificate from the Lender that says they will be happy to lend you the mortgage but it is subject to checks and house valuation. We’ll also use this opportunity to review your insurance requirements and help you identify what you need to protect you and your family.

Step Two – Mortgage application

Whether you’re purchasing or re-mortgaging, we’ll ask for all your supporting documents and complete your mortgage application for you.

If you are re-mortgaging this usually happens soon after you have received your Agreement In Principle. If you are purchasing then the application will begin when your offer is accepted. We will notify you when your offer is confirmed.

Step Three – Mortgage Offer Received

The Lender sends a copy of your Mortgage offer to you, your solicitors and us. If you’re purchasing you can proceed with exchanging contracts. But whether you’re purchasing or re-mortgaging, the process now moves to your Solicitors for completion of the legal work required.

Step Four – The road to Completion…

We’re still there whilst you’re waiting for completion. We chase your Solicitors for updates and help to solve any issues that may arise before Completion.

How long will it take?

The answer: it’s hard, but not impossible, to put time estimates on applications.

Overall we find that the average application takes 8 – 10 weeks and by average we mean cases without any significant issues.

Most delays occur because either the Lender wants additional documentation or alternatively they’ve valued the property at a price less than you have agreed to purchase.

Keys in hand…

After that, it’s down to you. Unfortunately if you need help with the unpacking, we’re busy…

Washing our hair.

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