Buying a house is often cited as being one of the most stressful things you’ll ever do. So it’s no surprise that most people want to get things completed as soon as possible once an offer has been accepted. The mortgage application process can take some time, but there are some steps you can take to speed things up…
Get an Agreement in Principle (AIP)
An agreement in principle (sometimes called a ‘decision in principle’ or a ‘mortgage in principle’) is a written estimate from a lender as to how much you can borrow. Having an agreement in principle will help speed up your mortgage application once you’ve found a property you want to buy. It will also give you a good idea of how much money you can borrow, meaning you won’t waste time looking at homes that are out of your price range. An agreement in principle is usually valid for between 60 and 90 days. Some estate agents will only let you view their properties once an AIP is in place, so this is usually the best place to start.
Make Your Full Mortgage Application Quickly
People often underestimate the time it can take to get a mortgage offer. Many also make the mistake of thinking that an agreement in principle is the same as an offer; it isn’t – you can only make your full mortgage application once you have had your offer on a property accepted. You’ll then need to send off the relevant documentation and the lender will carry out a valuation of the property. Only then will you know for sure whether or not you’ll be granted a mortgage loan, so the sooner you begin the application process the better.
Use a Mortgage Broker
An independent mortgage broker like Key Mortgage Advice will help to find you the best deal in the early stages and submit the application on your behalf. This will speed things along, reduce the risk of any errors, and generally make life easier for you. A broker is also on hand if you have any questions or require advice along the way, and because they have established relationships with lenders, it’s likely they’ll be able to iron out any difficulties faster than if you go it alone. Find out more about our services here.
Have All Your Documents in Order
If you aren’t using a mortgage broker, you will need to complete and submit your application to the lender yourself. In both cases, you will need to provide certain documents. Make sure you have these in order in advance – you don’t want the whole process to be held up because you can’t find your latest payslip! You’ll usually have to provide the following for each person applying:
- ID (driving license, passport etc.)
- Proof of address (such as a utility or credit card bill)
- Proof of income (usually 3 months’ payslips)
- Latest bank statements (usually 3 months)
- Latest P60
- Proof of your deposit
Put the Pressure On
Don’t be afraid to chase up the different parties involved, like making sure the estate agent is allowing the lender access to the property as early as possible in order for the valuation to take place. If you opt for the Mortgage Plus service from Key Mortgage Advice, we will take care of this and liaise with the estate agents, lenders and solicitors on your behalf, so you only need to deal with one person throughout. We’ll also fast-track your mortgage application, so you can be in your new home as quickly as possible.
If you would like to discuss this topic in more detail or speak to one of our independent mortgage advisors about your application, you can find our contact details here.
