Step 1 – Affordability
First things first, we need to work out how much you can borrow. We’ll take a look at your income, expenses, and credit history to calculate a borrowing amount that suits your financial situation.
Step 2 – Agreement in principle
Next, we’ll look at interest rates, repayment terms, and fees to find the most favourable deal available and then secure the best mortgage deal that you are eligible for – each lender has their own lending criteria, credit scoring and ways of assessing your affordability. We’ll arrange an ‘Agreement in principle’ with the most suitable lender, which will state how much you can potentially borrow and show estate agents that you’re serious about buying.
Step 3 – Full mortgage application
Once you’ve found your ideal property and had an offer accepted, it’s time to submit a mortgage application.
We’ll go through the application process together and provide the lender with all the necessary details, including your income, expenses, and employment history. We’ll review the mortgage details together and make sure you fully understand the terms before submitting.
Ordinarily, you’d instruct a solicitor (conveyancer) at this point to handle the legal work. We can recommend solicitors we’ve worked with before, and make sure you’re kept up to date with their progress throughout the process.
Step 4 – Underwriting and property valuation
It’s then down to the lender’s underwriters to assess your application and make a decision on whether to issue the mortgage offer.
The lender will also instruct a valuation of the property to be carried out – they’ll confirm if the house is worth the amount requested and that it is in a suitable condition.
If you’re approved for the mortgage, you’ll receive an offer that outlines the terms of the loan. This will also be sent across to your solicitor.
Step 5 – Legal process
The next step is to complete the legal process of purchasing the property. Your solicitor (Conveyancer) will handle the legal work, including property searches, enquiries and the legal title to the property.
Once the legal process is complete, it’s time to finalise the mortgage. This involves signing the mortgage deed and completing any final paperwork.
Step 6 – Exchange and completion
You are now ready to exchange contracts – your solicitor will exchange contracts with the seller’s and you’ll pay the deposit for the property. A completion date will be agreed at this point.
Your lender will then transfer the funds to your solicitor, who will transfer them to the seller’s solicitor.
Once completed, you can now pick up the keys to your new home!