There is plenty of excitement surrounding the purchase of a new home. However, you need to navigate the mortgage process which can sometimes be quite overwhelming. By knowing the mortgage application process before hand, you ensure that the whole process runs smoothly. Below is a step by step guide for loan applications.
This is the first step for many homeowners though you can forego this and go directly to the bank. When you contact a specialist broker, they will gather your personal information and carry out a soft search on your credit record. Based on this information, they will give you a range of different mortgages that are best suited for your specific needs.
After assessing potential lenders you will get a decision in principle document. Note that this document does not mean that you have been granted your loan. It means that the lender has assessed your credit score and they are willing to lend you money. With this document you can make an offer on any property you wish.
You can only begin the formal mortgage application if your offer has been accepted by a seller. At this point, the lenders will carry out a hard credit check and assess all your personal details.
Your lender will hire an independent surveyor to value the property. The lenders do this to make sure that the property is worth the value you are asking for.
If everything is in line and there were no problems encountered, you will receive the official mortgage offer. After accepting the offer, you will need a solicitor to act on your behalf. When both you and the seller are happy, the solicitor will manage all the other proceedings.
The entire process of the mortgage application can be overwhelming, especially if it is your first time. However, with help from professionals at Midland Mortgage, everything will run smoothly. For more information, contact us today.