So, you’ve found your perfect home and you’re ready to turn those “For Sale” signs into a warm welcome mat. But before you clink champagne glasses, there’s one crucial step: securing your mortgage. Don’t worry, this doesn’t have to be a mystery! Let’s break down the application process into bite-sized pieces:
Step 1: Get Your Financial House in Order
Think of this as your mortgage fitness test. Aim for a good credit score – it shows lenders you’re a reliable borrower. Also, try and save a deposit – the bigger, the better! Generally, a higher deposit means a lower mortgage amount and potentially a more favourable interest rate.
Step 2: Find the Mortgage Matchmaker (That’s Us!)
There’s a whole world of mortgages out there, and navigating them alone can be tricky. That’s where we come in! We act as your mortgage broker, matching you with the best deal based on your needs and financial situation. We’ll explain the different mortgage types (fixed-rate, variable-rate, etc.) and help you understand the terms and conditions. We’ll also use our industry knowledge and lender contacts to make sure that we only put your case forward with a lender you’re likely to get a successful outcome with.
Step 3: Apply for a Decision in Principle (DIP)
Think of this as a thumbs up from the lender. A DIP gives you an estimated idea of how much you can borrow, which can be helpful when searching for properties within your budget. We take care of this for all our clients and can help get you a DIP in as little as just 45 minutes.
Step 4: Gather Your Mortgage Superhero Toolkit
Once you’ve found your dream home and your offer is accepted, it’s time to formally apply for the mortgage. We’ll take care of this on your behalf, ensuring all the necessary evidences are also provided – such as proof of income (payslips, P60s, SA302s and Tax Overviews), proof of address (utility bills, bank statements), and details of any savings or investments.
Step 5: The Underwriting Assessment – The Lender’s Detective Work
The lender will assess your application to ensure you can afford the repayments and there are no additional concerns with you as an applicant. They’ll deep dive into your financial situation – like looking at your bank statements and credit report. Don’t worry, this is a normal part of the process. Sometimes they will come back and ask questions, though it is only to ensure that they are comfortable that you are a “safe” applicant to lend to.
Step 6: Survey Says…
Before finalising the mortgage, the lender will usually arrange for a surveyor’s report on the property. This ensures the property value reflects the amount you’re borrowing.
Step 7: Mortgage Offer – Time to Celebrate (Almost!)
Once everything checks out, the lender will send you a formal mortgage offer. This will detail the interest rate, loan term, and any associated fees. Make sure you read through it carefully before accepting.
Step 8: Completion Day – Ding Dong, You’re Home!
This is the exciting part – officially becoming a homeowner! On completion day, all legal documents are signed, funds are transferred, and you get the keys to your new home. We’ll be there to guide you through every step of the way.
Ready to embark on your homeownership journey?
At The Invested Mortgage Broker, we’re here to make the mortgage application process smooth and stress-free. We’ll explain everything in plain English, answer your questions, and find you the best mortgage deal that fits your budget and your personal needs. Let’s turn your dream of homeownership into a reality. Contact us today for a free, no-obligation chat!
