Mortgage application process? (borrower/valuation/underwriter?)

dweeby

Hi,

I'm struggling to understand the steps in getting a mortgage, fyi I'm currently living in rented following the sale of our house and am applying for a mortgage with only ~35% ltv (and I'm applying to First Direct).

Is it something like:

1. Interview/phone call for ~40 mins, fact finding etc.
2. Application form completed, returned to lender with documentary evidence.
3. Borrowers checked for credit/affordability/employment/salary etc.
4. MIP (mortgage in principle) agreement.
5. Valuation of the property, and establishment of ltv and property condition.
6. Mortgage is underwritten (what does this mean??).
7. Don't know what happens at this stage!
8. Mortgage offer sent our, signed and returned (now binding?).
9. Money draw-down through the solicitor on completion.

Is that about it? have I missed anything? Are any parts prone to delays?

We're in the middle of it, but I really don't understand what's happening!!

dan1979

A bit jumbled...

Underwriting is where someone sits down with everything, makes sure your passport isn't fake, does a thorough check of the figures/reference/payslips etc. then decides if they need more information to support your application or if you can have the offer. They will make a lending decision on behalf of the lender then sign off your application.

The agreement in principle is just that, in principle - subject to all th stuff like payslips being checked. At that point they'll only have checked your credit history and the information you've given them.

dweeby

dan1979 wrote: »

Underwriting is where someone sits down with everything, makes sure your passport isn't fake, does a thorough check of the figures/reference/payslips etc. then decides if they need more information to support your application or if you can have the offer. They will make a lending decision on behalf of the lender then sign off your application.

Well this must be where I am then, getting frustrated!

As we're going through all this checking now, does this mean that once we're passed this stage - if the valuation works out ok we're home and dry?

Thanks in advance!

dan1979

As far as the mortgage goes yeah, as soon as the underwriter is happy then that's it - offer will go out in the post.

Obviously there's things that can happen with the conveyancing process but that's a whole other field and the chances are it will be fine.

LostSocks

I never really knew the process despite it being the 4th mortgage we've applied for in the last 10 years. You'd think we would be a dab hand at it by now. We might finally settle down in this house - I hope

dan1979

Having worked for a big mortgage lender I can assure there's no part of the process that's even remotely interesting enough to bother finding out about. There was a toilet sex scandal at the company do one year but that's about it.

LostSocks

dan1979 wrote: »

Having worked for a big mortgage lender I can assure there's no part of the process that's even remotely interesting enough to bother finding out about. There was a toilet sex scandal at the company do one year but that's about it.

:rotfl:I love a good scandal

dweeby

dan1979 wrote: »

As far as the mortgage goes yeah, as soon as the underwriter is happy then that's it - offer will go out in the post.

Excellent! I just had confirmation that the under-writer is happy! First Direct are now aranging a valuation, so hopefully it's in the bag. Thanks for everyones comments.

Wonder how long it will take now...