The seven steps to securing your new home when using a mortgage advisor…
- Arrange an agreement in principle (AIP)
- Talk to your mortgage advisor to arrange an agreement in principle. This makes sure you have the best chance of securing your home you make an offer on. It will confirm in writing how much a lender will be prepared to lend to you, subject to a full mortgage application and underwriting. This AIP can then be used to confirm to us your credit worthiness and that you are a serious buyer.
- Make a formal offer
- When you’ve found the property for you, make a formal offer subject to contract and get back in touch with your mortage advisor. Now’s the time to make your formal mortgage application to the lender.
- Arrange a valuation
- Your mortgage lender arranges for a surveyor to carry out a valuation report on your chosen property to ensure it is suitable security for a mortgage. Select a solacer to draw up contracts and carry out local searches (known as conveyancing).
- Review your full mortgage offer
- Once the lender’s assessment of your eligibility has been successfully completed, finances checked and assuming the valuation figure is acceptable, the lender will produce a full mortgage offer which will be sent to both you and your solicitors. This will detail the loan amount, the monthly repayments, details of the mortgage product and terms of the loan. It will also detail any special conditions that need to be met by you and/or your solicitor which may involve arranging quotes and liaising with the vendor/agent fr work required identified by the surveyor.
- Arrange local area searches with your solicitor
- Your solicitor carries out local searches and confirms ownership of the property etc. before drawing up your contract of sale.
- Sign your contracts
- Contracts are then signed by both seller and yourself and the deposit is typically paid to your solicitor and contracts are then exchanged. You have now made a legal commitment to buy the property. You then need to contact your Mortgage Advice Bureau advisor to ensure any insurance cover is put in place. Your solicitor will give you a completion date for your purchaser and you can then start making moving day arrangements.
- Move into your new home!
- Completion day arrives. Arrange to collect the key from your Sales Advisor. It’s time to move into your new home!
This content was written by The Mortgage Advice Bureau at Manning Stainton..