How long does it take? Mortgage > Making An Offer

lion-o

We visited Nationwide a few months ago to find out the amount we can borrow.

We have another meeting this Saturday, where they will do credit checks and check our bank statements, payslips etc.

I was just wondering, when will we be able to start making offers on houses? Straight after the meeting (if all goes well).

Also will they expect us to pick a mortgage product during this meeting or can we wait to decide which one until we decide the house that we want?

Thanks

viclspence

My friend has recently taken out a Mortgage with Natwest. They had it confirmed within 28 days ready to exchange. there holdup was the solicitors dealing with the sale. that was on a first time purchase too.

viclspence

Sorry should have read your post fully. Most people go to look at houses before settling on a Mortgage, so they would expect you to go with house details normally. They wouldn't be able to confirm whether they could give you a mortgage until they have property details and done a survey. They would only be able to give you an offer in principle.

lion-o

Thanks, yes I'm asking about the offer in principle, how long would that take to be decided?

I take it after I have got this, I find the house I wish to purchase... then what do I do? Put in an offer or go back to the bank first to tell them about it?

kingstreet

Agreement in principle
Viewings
Offer
Purchase price agreed
Instruct solicitor (open file, do nothing yet!)
Sales memorandum issued by agent
Purchaser applies for mortgage
Vendor's solicitor prepares and issues draft contract
Vendor completes seller's enquiry forms and returns to solicitor
Valuation/survey carried out
Purchaser pays solicitor for searches
Searches requested
Renegotiation of price due to survey findings - if required
Mortgage offer issued
Purchaser's solicitor receives seller's enquiry forms and raises any enquiries
Searches returned
Responses to enquiries
Purchaser visits solicitor to go through paperwork, hand over ID and deposit
Completion date agreed between all parties
Contracts exchanged
Completion takes place.

lion-o

Thanks very much kingstreet for your answer, how long would the mortgage in principle take to be decided?

kingstreet

A specific item?

The whole process can take anything from a day to months. It's never the same, always different.

lion-o

Yes the mortgage in principle part.

Thanks

kingstreet

An AIP takes about ten minutes to submit and the answer is normally instant. If it comes back with a "refer" a human being might have to look at it and it might take a couple of hours longer.

lion-o

Thanks kingstreet you've been very helpful.