can someone explain please what the steps are during a mortgage application?

penny_dreadful

Sorry if I'm being stupid here, but I can't find this information anywhere on the internet/web.

Can someone explain what happens once you have applied for your mortgage and the different steps that the lender goes through before accepting or rejecting your applicaiton?

We've applied and passed the credit scoring and we have been asked to send paperwork confirming our income, but what happens next? At what point are we 'accepted' for the mortgage and when do we find out? What order do things happen in? Are we accepted 'subject to valuation' or does the valuation take place before the lender tells us we've been accepted?

And if we're declined, at what stage would we find out?

Just trying to work out how long these things take and when we should know whether we're accepted or not.

Dan_1976

In theory, they will check off your payslips and other documents. Once they are happy they will instruct your valuation.

If they are not happy they will be in touch.

As long as you have sent in proof of what you have told them, then you should be ok. Just remember they are busy at the mo and it will not be as fast and slick as you may want.

Keep in touch with them, get an up-date every 3 or 4 days from your adviser or lender.

In some cases the val will or may be instructed before your accepted, so keep in touch to ensure this does not happen.

Good luck

[Deleted User]

Dan_1976 wrote: »

In some cases the val will or may be instructed before your accepted, so keep in touch to ensure this does not happen.

We've just had our valuation requested before they've checked our documents, so a long way before acceptance - is there a problem with this Dan?

Senior_Paper_Monitor

You may be incurring costs as a result of the valuation (whether you are subsequently accepted or not).

We always try to ensure that case is underwritten before the valuation takes place for this reason.

Risk is fairly low if your docs are complete and match your application

VIGILANT22

In recent days some lenders have changed criteria and are now appointing valuations on receipt of applications (before underwriting)...a property may value up but app may fall down at underwriting stage and then as stated above declined and the non refundable val fee has been charged...no comeback

Andrew_Thomas

be careful of the above as the o.p states you could end up £100's out of pocket, another thing to be wary of is booking fees payable upfront then the property being down valued

[Deleted User]

We had no choice with our lender as we're porting a mortgage over, but there was a valuation fee (of £430 but refundable) which was payable on application, so whether they underwrote the application before valuation wouldn't make any difference.

That said, if a lender is charging a refundable 'valuation fee' which is payable even if the product falls down at underwriting, isn't it really a stealth 'application fee', in that you could pay the fee and never even get to valuation?

[Deleted User]

Deleted_User wrote: »

We had no choice with our lender as we're porting a mortgage over, but there was a valuation fee (of £430 but refundable) which was payable on application, so whether they underwrote the application before valuation wouldn't make any difference.

That said, if a lender is charging a refundable 'valuation fee' which is payable even if the product falls down at underwriting, isn't it really a stealth 'application fee', in that you could pay the fee and never even get to valuation?

Of course, if all goes fine you get your money back so no problem, but this overinflated valuation fee seems like a good way of making money from applicants who fall at the first hurdle. It also seems ridiculously priced (the same lender 'kindly' offered a homebuyers survey for £730 and a full structural survey for £1100!)