Have you found the perfect home? It’s time to apply for mortgage! If you’re a first time buyer, this can seem a little scary and daunting but it honestly doesn’t have to be – follow our four easy steps to make the process smoother, and know what to expect as you apply for a mortgage.
Get a mortgage advisor
If you’re a seasoned pro at applying for mortgages and buying property, you could go straight to the mortgage providers. But if you’re a first time buyer we suggest you get a good mortgage advisor who can take you through the process. Do this before you even find your property so they can guide you on what paperwork you’ll need, and perhaps even help you get a mortgage in principle which means you’re armed to make an offer on a property as soon as you fall in love with it. Search for local mortgage advisors or ask in local community groups who others would recommend.
Find the right mortgage deal
If your offer is accepted on a property, work with your mortgage advisor to find the best deal for you. You can also do this yourself – check out your own bank, and go to others to get the best possible deal. You may feel more comfortable saying yes to your bank, however this may not be the best offer and you’ll end up paying thousands more over the course of your mortgage.
Shop around the mortgage marketplace – this is when your mortgage advisor can really come in handy as they’ll spend the time finding the best deal, and know what is good for you in the long run.
Get all your paperwork in order
Your mortgage lender is going to ask you to provide documentation and proof of things like identity and income sources to ensure you can afford to buy the property for the price you agreed on. Some of the paperwork you will need to get together will include:
- Payslips if you’re employed or self-assessment submissions if you’re self-employed
- Bank statements
- Passport or driving license
- Proof of current address (bank statement, council tax bill or utility bill will all work)
You may also be asked to provide paperwork and details of things like:
- Savings or money you plan to use towards the property if given to you as a gift
- Car finance or other recurring payments
- Loans or credit cards
It’s a good idea to start getting these documents together well in advance and keep in a folder, so you don’t panic when you can’t find a payslip or card statement.
Submit your application
Once your offer has been accepted, make the mortgage application! Go straight to the lender, or if you’re working with a mortgage advisor tell them you are ready and they will handle the submission for you.
Whoever you have decided to apply for a mortgage with, they will conduct a validation on the chosen property to ensure it is actually worth the money you intend to pay for it. They will check the paperwork you provided, and check your credit record.
If your mortgage application comes back turned down, you need to ask why this is and try to resolve any issues as this will likely happen with another lender. There may be something lurking in the background – for example we know sometimes no credit record can be a negative so you may be advised to get a credit card or get your phone on contract to show you can keep up with regular repayments! Your mortgage advisor will work with you on finding out why your application is rejected.
If everything checks out, you’ll receive a formal mortgage offer – these are typically valid for up to 6 months. Sign on the dotted line, and you’re flying!
Good luck with purchasing your dream property!