FTB - Apply for mortgage before offer?

blowfly

Quick question that I'm now slightly worried about...

Me and my wife are first time buyers just a bit unsure about the process. I've read various threads on how to buy a property, but I'm still slightly confused! We've seen a house we'd like to put an offer in and we've also received a Key Facts Illustrated from a mortgage lender, with an application form.

We're keen to get the mortgage application in as the product's apparently being withdrawn at the end of next week. Are we doing this the wrong way round? Should we be putting offers in first and then applying for the mortgage once our offer has been accepted? Or is it safe to put down the maximum we'd think we'd need and then adjust accordingly?

Another thing about the mortgage application is that they're asking for solicitor information! And the valuation/survey fee! Is this just more evidence that we're doing it wrong?!

Oh, the confusion What to do! Thanks in advance.

Midastouch_2

Found this on the net

http://www.greenwich.gov.uk/Greenwich/Housing/BuyAHome/RightToBuy/FAQ/WhenShouldIArrangeAMortgage.htm

Mortgage approvals usually last up to three months.

We suggest that you start to arrange your mortgage when you have received the offer and decide to go ahead and buy your home. It is at this point you will start to become responsible for survey and legal costs.

If you make arrangements before you get the offer, there is a chance the mortgage offer will end before you have had a chance to decide whether to go ahead and you will have to start again.

blowfly

Thanks for the reply.

My mortgage lender (the Post Office) said the application would be valid for 6 months.

But the more I think about it and read up on it, should I have got a mortgage in principle instead of the actual application? I think I'll just ring them tomorrow and find out.

I guess I'm a bit keen to get this rate, as it seems to be the best deal at the moment!

space_rider

I get a mortgage in principle first before I start looking at houses, that way you are ready to go when you see something. If there is something there that the building society don`t like you can get that sorted out before paying the costs of sols and surveys.

hermanmunster_3

the MIP is based on income as quoted and an approx value of the house - so the ultimate amount they would lend would depend on the price of the house. I rang for a MIP the other day and was offered a loopy amount (well I thought it was loopy - far more than I was asking for) of money. Nearly 5 times income - I thought that had stopped!!!!

sillyvixen

at least if you have a mortgage offer in principle before you start falling in love with properties that will put you in a better possition than some of the other buyers who are tempted to offer on you ideal property .. it will also give you an idea of what properties you can afford to look at and will stop you being rash if you get into a bidding contest with other would be purchasers .. a good idea if you ask me know your limits - i did!!

blowfly

Thanks for the replies!

I rang the Post Office yesterday and they said they wouldn't proceed with the valuation until we were ready to proceed. They said to just put down the house we were thinking of buying and its asking price. We can always change it later. It's merely so they can proceed with the application and reserve the funds. They wouldn't proceed with any valuation/survey without checking with us first.

I'm going to send the application off tomorrow. We've also started the offer process on a house we like. So fingers crossed we can knock them down a bit