The Mortgage Application Process: Explained
The Mortgage Application Process: Explained
Getting ready to apply for a mortgage? If so it will be useful to know what's involved in the mortgage application process so that you can be ready for each step that follows your initial application.
Agreement in Principle
Firstly you will receive an agreement in principle'. This lays out what you may be offered by your lender after all your conditions and financial situation have been thoroughly checked.
Select a Solicitor
The next step is to select a solicitor or Licensed Conveyancer to handle the legal side of your transaction. They will then start to liaise with your mortgage lender.
Mortgage Application
Next comes your formal application for which you will need to provide evidence of income and various other pieces of important information that prove you will be able to afford the repayments.
Mortgage Offer
Once your mortgage lender is satisfied that you will be able to afford the mortgage repayments, a formal offer will be made. Sometimes there are conditions connected with the offer and your solicitor will explain what these mean and will advise you accordingly.
If you are required to provide a deposit, the logistics of this will be arranged. Then, providing everything is in order, the conveyancing process can move on to exchange of contracts and then completion which is the agreed day on which your funds will be released to the seller of the property you are buying.
Of course, if you seek the advice of a whole of market mortgage adviser, they will be on hand to guide you through the entire process so that you can rest assured everything is being professionally handled.
Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it.