Mortgage Application Process
A step-by-step breakdown of the mortgage application process:
Step 1 – Complete the Application Form
The mortgage application form must be filled out with all the necessary details, including your name, address, date of birth, amount you wish to borrow, and PPS number. Make sure the information is accurate and up to date.
Step 2- Gathering Supporting Documents
Collect the required supporting documents, such as bank statements, loan account schedules, and payslips. These documents demonstrate your financial stability and ability to repay your mortgage.
Here is a helpful blog on documents needed for a Mortgage application
Step 3- Packaging and Submission
When you have your application and supporting documents ready, we package the documentation and put a proposal together to go to the lender with your submission.
Step 4- Assessment by Underwriter
Your application will be evaluated by the lender’s mortgage underwriter. A red flag that may lead to rejection is being consistently in overdraft, missing payments, or regularly paying betting companies. They are primarily concerned with determining your mortgage affordability (i.e. whether you can afford your mortgage).
Step 5- Approval in Principle (AIP)
If your application is deemed acceptable, you will receive an AIP, which is a form sent by the bank confirming the approval of your mortgage in principle. There may be various terms and conditions attached to the approval in principle and it is valid for 6 or 12 months depending on the lender.
Step 6 – Engaging a Solicitor and Property Search
At this stage, it is advisable to engage a solicitor and begin your property search. It is recommended to bid on properties only after obtaining an AIP, as the mortgage process can take time.
Step 7 – Property Submission and Valuation
Once you go sale agreed on a property, you send the details to your broker and satisfy any conditions that were attached to your Approval in Principle e.g up to date bank statements. The lender will send a Valuer from their panel out to the property to complete a Valuation Report on the property confirming the market Value and a number of other details.
Step 8 – Loan Offer and Conveyancing Checks
Following the property submission, a loan offer will be sent to your solicitor as an official document. The solicitor will conduct conveyancing checks to verify the property’s legality and ensure there are no outstanding mortgages on it.
Step 9 – Arranging Life Assurance and House Insurance
As part of the loan offer, you will need to arrange life assurance and house insurance coverage. These policies protect both you and the lender in the event of unforeseen circumstances.
Step 10- Signing the Loan Offer:
Once all requirements are met, you and your solicitor will sign the loan offer. This completes the mortgage approval process.
Step 11- Obtaining the House:
The signed loan offer is then returned to the bank, and you can proceed with the property purchase. With the mortgage approved, you are one step closer to owning your new home.
It’s important to note that the timeline for each step can vary. Generally, the AIP stage takes around six to eight weeks, and the loan offer stage takes three to four months (although it can sometimes be longer).
If you’re feeling overwhelmed, it can be beneficial idea to use a broker, who can advise you on the whole market. A broker can determine what lenders have the most competitive rates and offers for your specific circumstances. Using a mortgage broker can also save you time and money as the process is more efficient than applying directly to multiple lenders. Also, a broker can help identify which lenders are likely to give you a mortgage exemption.
If you still have a few questions – here’s a link to the TOP10 Mortgage FAQ’s or
Have a chat with our experienced Mortgage advisors for personalised recommendations based on your personal circumstance
