With our House buying process finally completed and us currently moving into our new home I decided to start up a few posts about the process of buying a property and all the things that come with it. First of its all about that all important Mortgage and how to get it approved!
PLEASE NOTE I have no experience what so ever in any kind of advising field this is just a blog post about our journey to our very first Family House and how we got there!
The first step to owning your very own house is always the Mortgage or so you think it’s not all about getting a Mortgage there is a long road ahead before you can even apply to be eligible for a Mortgage proposal.
Make sure that your Credit Rating is good and you are in no depths for at least 12-18 month (the longer the better). Pay back all your store credit on time every month and pay your credit cards on time and don’t miss a payment! Try to not switch any providers, take out loans or new phone contracts and keep a steady income and outcome on your bank balance.
Save a deposit on a house depending what size Property you are looking to purchase in our case that is a 3 Bedroom Semi Detached House and we have got 12% Deposit (but most lenders are happy with 10%).
Find yourself an independent Broker we have been very lucky that we have a Broker in amongst our Friends Circle who is dealing with nearly all of our Family’s Mortgages. A Broker does NOT charge you for his services because he is receiving a Pay out from the Bank once the Mortgage Deal is completed.
TIP: When you are looking for a House and maybe already had an offer accepted the Estate Agents are very quick to jump in offering their expert In House Solicitors and Financial Advisors please DON’T feel pressurised in accepting, even though the Estate Agents are very persistent with their choice because they will get even more cash from you and its easier for them to liaise when it’s all in one place. They don’t care as much to finding you the best Mortgage deal its more about saving time and getting the most out of the client.
The Broker will go through with you in detail what deals there are available with the existing deposit you have saved and will phone various Mortgage Lenders to find the best deal for you.
To apply for a mortgage you will need (all original Documents):
Proof Of Income -If Employed: Latest 3 months payslips, or last 12 weeks payslips if paid weekly and Latest P60
Proof Of Residency – Current Council Tax bill showing your name and address
Proof Of Identity – Your current passport
Proof Of Outgoings – Latest 3 months full bank statements
Children/School Fees (if you have children) – Monthly cost of any maintenance paid as well as the total cost of any child care fees or school fees each year.
Proof Of Mortgages, Loans, Credit Cards, etc – Current annual mortgage statement for all mortgages that you have and latest credit card statements, including any credit cards that are cleared to zero each month and if you have any outstanding loans, please could you confirm the amount outstanding, the monthly payments, the term remaining, the lender and the interest rate payable.
Proof Of Where Funds Have Come From For The Deposit – Latest bank statement, ISA statement, bond statements, etc, showing evidence of deposit/where it has come from {This is only required if the deposit is not coming from the sale of your current residential property}
You will then receive a Mortgage Proposal and if accepting it you will have to sign it so the process of bidding on a house can finally begin. Although you can always put in an offer on a house without a Mortgage in principle in place like we did because we found our house quicker then we thought we would!
I hope this little write-up about a getting a Mortgage approved will be helpful and please come back to check out my house buying journey where I will be covering everything from the mortgage, solicitor, searches and timescales all the way to completion day!
Happy House Hunting!!