Mortgage -a timing question

nudda

I am still in process of gathering a decent deposit for a house but wanted to mentally prepare what I need to do to complete the process.

Do I need to apply for a mortgage before I start looking at properties? I ask because what I dont want is to see a property that I like and be without a mortgage which will take x weeks/days to be available. At the same time, I don't want to apply for a mortgage and be armed with a certain amount whilst looking for properties as it might take me some time to look for "the right house".

How does it work?

Thanks!

Tiggy_Wiggy

I think you are getting a little confused. Cash from a mortgage will only be available when you are actually in the process of buying a property.

A lender will not give you a mortgage without actually having an asset (house) on which to recover the debt from.

You can however, get a mortgage in principle, to get an idea of how much you will be able to lend.

nudda

hands up - i am confused.

So Once I get my deposit in place, I look for a property - make an offer then get a mortgage that reflects price?

(I understand now that for the interim, I am approach lenders to simply get an idea of how much I would be able to get)

Hello123_2

1. Get a 'decision in principle' with the lender you want to use= so you know how much you can lend/the basics done
2. Find a house you like
3. Offer/Offer accepted
4. Full mortgage application & legal work

Most decisions in principle can last between 28 days-6 months, but this isnt a deadline - so long as your circumstances dont change you should be fine.

Perhaps use online calculators first to get a ROUGH idea of how much you could borrow, then start looking at properties to get an idea of what you can afford/areas/what your criteria is

Hello123_2

Sorry I just realised you havnt got a deposit yet so obv thats no1 priority!

ACG

Speak to an advisor - find out roughly how much you can get a mortgage for.
Look for properties.
When you find one, put an offer in.
If it gets accepted, get an agreement in principle.
Then apply.

No point having a credit check done (at the agreement in principle) until you find somewhere as theyre only valid for a certain length of time.

Hello123_2

ACG wrote: »

Speak to an advisor - find out roughly how much you can get a mortgage for.
Look for properties.
When you find one, put an offer in.
If it gets accepted, get an agreement in principle.
Then apply.

No point having a credit check done (at the agreement in principle) until you find somewhere as theyre only valid for a certain length of time.

One could argue that there is no point in even looking for properties, putting offers in etc if you don't even know if you can get a mortgage.