Applying for a mortgage may seem daunting, but knowing what to expect and what you can do to plan, will help. That’s why we’ve listed the key steps in the process below – all of which will get you closer to your dream property,
Check your credit score: there are sites you can use free of charge to check your credit score. This is important as the results may impact your ability to qualify for certain mortgages, where your previous borrowing and financial history will be reviewed as part of the assessment process.
Budget planning: This sounds like an obvious step but it’s important to look at all of your outgoings to realistically weigh up how much you can afford in monthly mortgage repayments. It’s advisable to leave yourself a buffer, and not opt for a mortgage which will take you to the top end of what you can afford to spend each month.
Do your homework: There are multiple lenders, rates and deals on the market. It’s best to shop around before you start looking at properties just to give you an idea of what the various banks and lenders have on offer. Deals change all the time, but get ahead of the game and compare interest rates, terms and fees to see what you might be able to get when it’s your turn.
Pre-approval: This will stand you in good stead when making an offer on a property. You can get pre-approved for a mortgage if you submit an application – this is often referred to as an Agreement in Principle. This will require providing proof of income, along with detailed information about your outgoings, assets etc.
Now the exciting bit: Find a home that you love, that meets your needs and that you can afford. Once you’ve done this (and all of the steps above) you can make an offer.
There are a number of subsequent stages to go through once your offer is accepted. These will involve working with your estate agent, surveyor and solicitor to get everything in place so your offer can be finalised and you can work towards exchanging contracts and getting the keys.
A mortgage expert at Zoouka said: “Getting a mortgage for the first time can seem like a minefield of documents and admin, but it’s very important to put the groundwork in. For example, having pre-approval on a mortgage means sellers will take you more seriously and it indicates you’re in good financial shape to buy the property. There are always things that are out of your control when it comes to buying a house, but you can put yourself in a better position by understanding the mortgage process.”
