Getting a mortgage

The_Pixi

Hi everyone,

I was hoping someone could explain to me the main steps that go in order of getting a mortgage and finally having the keys in your hand

Basically we are looking to sick out toe in the water of home ownership looking for property that is around the £300,000 and we have a £50,000 deposit.

So what are the steps? thanks.

Thrugelmir

Obtain an indication of the amount you are able to borrow. Start looking for potential properties to purchase.

Alisha2008

1) Go to the bank, they will tell you how much you can borrow and how much it will cost you a month
2) Find the property
3) Make an offer
4) Back to the bank , ask for the mortgage, wait.
5) Once accepted, set a date to exchange contracts.

The_Pixi

Alisha2008 wrote: »

1) Go to the bank, they will tell you how much you can borrow and how much it will cost you a month
2) Find the property
3) Make an offer
4) Back to the bank , ask for the mortgage, wait.
5) Once accepted, set a date to exchange contracts.

Thanks but that's not quite what I meant.

Finding out what the bank will lend I get that but that's going to be my upper limit, so once you find a house and make an offer - do the bank then re-run the mortgage request?

when do you have surveys done? what types are there?

how long does the process typically take if the process flows without hiccups.

Sorry to ask again but I was hoping for more detail as to the whole process - seems hard to understand it all without going through he process and Id like to have a overview.

Also how does it usually work with the Bank? how long can it take to get a yes or no and the amount willing to lend?

Mrs_Z

Yes, what you normally get from the bank is a 'mortgage in principle', this is a maximum amount they would lend you on the information you have provided. Once you have found a suitable property, put in an offer and your offer has been accepted, you will then need to go back to the bank to formally apply for the mortgage - some banks charge you for this. Depending on the offer price, the requested mortgage figure might be less. At this point, the bank will check your credit history, do a valuation on the property... etc and if they agree to lend you the money, will send you a formal mortgage offer that is valid for x months. There are 3 types of surveys; valuation (which bank does), home buyer survey and full (structural) survey. Valuation is only very basic, it just checks that the property you are trying to buy will offer enough security for the sum bank is lending you (ie. that if you default on the mortgage they can get their money bank by repossessing and selling it). If you decide to go for the Homebuyers or Full Survey, depending on the results - you might/can try to renegotiate the offer price. Also you will need to appoint a solicitor or convenyancer to do the legal stuff for you. Once you exchange contracts the sale is binding and both parties are obliged to proceed or there will be penalties. Your solicitor will deal with payment of the deposit and stamp duty (if applicable).

harvey115

If you have a straight forward application i.e. good credit record, good permanent job, no major debt and good deposit. You should be able to do this directly with a bank. Otherwise a broker would be best to approach, they will take all your stress and deal with the application to completion for you.

If going directly:
- Got to a Bank and get an AIP, indication on how much they may be able to lend (no guaranteed)
- Select a house and place an offer
- Make a full mortgage application
- You will then get a written offer from the lender with all the necessary bits added i.e. valuation, property type etc. (solid/realistic numbers for that purchase to complete)


If you go through a broker:

- Explain your financial situation to the broker
- Select a deal from their offering (then you may get an AIP)
- Select a house and place an offer
- Apply in full with your broker's help
- Again, a written offer for you to complete


I would suggest if you are worried and a First Time buyer like me, go for a broker to hold your hand for the whole process and take the stress out.

Hop this helps.

The_Pixi

Thanks for the help people