Nationwide mortgage application process

freeman3030

Hi all, I had a meeting with my mortgage advisor on to get my mortgage application sent. He either sent it Wednesday evening or Thursday morning.
I've then recieved text messages following the progress of my application

28/02/13 - Mortgage application has been recieved and the products have been reserved for my mortgage application.

01/02/13 - the valuation will be carried out on 04/03/13 and will be in touch once they've recieved the valuation report.

Does this look promising of a successful mortgage application? I've already tried to convince myself that this is a good sign because they wouldn't be doing a valuation if they don't like our credit rating/employment history/affordability etc. would they? I don't fully understand the process of mortgage application, but I really want to get my foot on the property ladder!

mrsmchapman

I always believed that if they processing the survey then the credit checks have been checked and are ok.

Crashandburn

mrsmchapman wrote: »

I always believed that if they processing the survey then the credit checks have been checked and are ok.

Doesn't mean they are happy with the income though.

All good signs so far but until the mortgage offer is issued, then there are other questions that could come up. Not being a party-pooper but just stating their position

Good luck

akamustang

Did you get an agreement in principle from Nationwide before making the application?

If you did then they've already done your credit check, so providing the valuation comes back at a similar figure then there shouldn't be a problem.

If you didn't then once the valuation comes back they will do the credit check then, if that comes back as a pass then you get the real offer.

EDIT: As Crashandburn mentioned there are other considerations for the offer other than credit check, but one would have hoped your broker would have already checked that you pass the lenders conditions.

kingstreet

akamustang wrote: »

If you didn't then once the valuation comes back they will do the credit check then, if that comes back as a pass then you get the real offer

Not the way the Nationwide For Intermediaries online system works. To actually get to the point of submitting a full application and paying the fees, you have to have got an acceptance at the DIP stage on the way through.

It's a "build from the bottom" system, which allows a KFI, then a DIP, then a full application, all in the correct order only.

There can be a gap between DIP and full app, or you can go straight through immediately, but you can't do the full app submission without having passed the DIP first.

freeman3030

Hi thanks for the responses, we did get a agreement in principle before submitting the mortgage application - all was fine at that stage. I'm sure there isn't going to be a problem at all... it seems to have moved quite quickly already, I'm just a bit nervous because I love the place we've made an offer on and being first time buyers I've never dealt with a mortgage application before. Fingers crossed all goes well!

sockpuppet

it will depend on the lender. Some (like Santander) do not instruct the valuation until the end - after they have checked and agreed the rest of the application details.
Some just instruct it at the start (especially if it is you who is paying for it and not them!) and then even if comes back all okay the app can still run into problems later if there are credit or income issues etc.
I think** NW are one of the lenders who just instruct at the start (or at least they used to)

freeman3030

Oh no! This worries me slightly again because we're paying for the valuations, so they've got nothing to loose by instructing them in the beginning in that respect.
I've been honest with the amount we earn, our broker said with our incomes we can borrow up to £120,000 with Nationwide, and we've asked to borrow just over £82,000. So we're not pushing ourselves to the max we can borrow. Our broker asked us to fill out a budget planner, and we have a couple of hundred pounds spare per month after all our bills etc. so we can afford to live our current lifestyle once we move out.
Although our broker has said there shouldn't be any problems, I can't help but worry we'll be declined. It feels like there is still so many hoops to jump through and we're ages from actually owning our own home!