Mortgage Application Process

Mortgage Application Process

If you have had a mortgage already, you will know what to expect when applying for a mortgage. But if you’re a first-time buyer and thinking about making an application for the first time, you may be a little unsure of what the process entails.

We are here to help. Not only do we have a guide for you below but we can also offer you advice if you get in touch with our team of brokers. We will give you advice on the best way how to apply for a mortgage and we will answer any questions you may have about the process.

Contact us if you’re ready to get started with your mortgage and check out the guide below for some helpful information.

Mortgage Application Process Steps

mortgage app steps preview

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If you are looking for more of a breakdown of the mortgage application approval timeline < click here.

Step 1 – Contact a mortgage broker

When you’re ready to start your mortgage journey or even to begin your mortgage application, you then have two choices: go it alone or use the services of a broker, such as ourselves.

If you go it alone, you will have to shop around for a good mortgage deal and manage the mortgage application yourself. Alternatively, you can choose from the hand full of deals that your bank can offer to you. While this is an option, we recommend our services to you.

Because we are a fee-free broker, you won’t have to pay us a penny. You can benefit from all of the expert advice and support we can give you for FREE and you will have somebody on your side to guide you when you’re applying for a mortgage.

Your mortgage adviser will:

  • Search the market for the mortgage deals that are right for you
  • Advise you on the mortgage fees your mortgage lender will charge you
  • Give you all the help you need with the mortgage application

And so much more besides throughout the mortgage process. Contact us to learn more.

Step 2 – Make sure you’re mortgage-ready

Before applying for a mortgage, you have to make sure you’re mortgage-ready. You need to be aware of how long a mortgage approval takes in the UK. If you’re not in a strong financial position and if you have a poor credit history your application may get turned down.

So, assess your financial situation beforehand and do what you can to improve your position, perhaps by paying back any outstanding debts you owe and making a concerted effort to save for a deposit. Our advisors will advise you on how to better your financial situation and credit score before applying for a mortgage.

Check your credit report too and if your score is low, find ways to improve it. To do this, you can:

  • Make sure you are on the electoral roll
  • Check for errors on your credit report
  • Take steps to build your credit history
  • Pay your accounts on time

It’s also important to consider your professional position. A mortgage lender will want to see that you have a steady income and that your employment is secure. So if you are in the probation period of a new job or if you are about to change jobs, you might want to wait a while before you start your application.

If your income is steady and your finances are healthy, the final step to becoming mortgage ready is getting your application documents ready. This will hurry up the process later. Such documents will include:

  • A form of ID with a proof of address
  • Proof of your income, such as payslips, P60s, and tax returns (if you’re self-employed)
  • Bank statements

Step 3 – Get a mortgage in principle

Before you start house hunting, it’s wise to get a mortgage in principle (also known as a ‘mortgage agreement in principle’) to prove to the estate agent that you’re a serious buyer.

As the name suggests, a mortgage in principle isn’t a guarantee that you will be given a formal mortgage offer. It is a pre-approval document that takes into account your earnings and your outgoings and will give you and your real estate agent an estimate of what you may be allowed to borrow if your application is successful.

You can get a mortgage in principle from either your lender or ourselves.

Step 4 – Find a property and make an offer

This is the fun part! When you have received a pre-approval estimate, time can then be spent looking for your dream property. Consider the size of your family and your financial needs when looking for a suitable property and narrow down your search accordingly.

When looking for your next home, remember to take into account such things as property taxes, utility costs, and the monthly payments you will be paying on your mortgage, as you will need to budget for these.

There’s no rush when looking for a property. You don’t want to make a hasty decision so take your time. Your mortgage in principle will be valid for up to 90 days but even if it does expire, you can still renew it.

After finding a potential next home that is at a property price you can afford, you can then make the seller an offer. If other buyers have shown an interest, there is no guarantee that they will accept your offer, so you might have to haggle or continue your search elsewhere.

Step 5 – How to apply for mortgage and make your mortgage application.

Once you have had your offer on a property accepted – wahey! – it is then time to apply for a mortgage. If you are using the service of a mortgage adviser they will advise and help you with how to apply for a mortgage.

As part of the application, you will need to provide proof of your deposit money alongside evidence of your other finances, such as your bank statements, payslips, and any other relevant documents required by the lender.

When you have sent the documents to your mortgage lender, the waiting process begins. This can be quite a nerve-wracking experience as you won’t know at this stage whether you will be granted an official mortgage offer. However, if your application was strong, there is usually no need to worry.

Step 6 – Speak to a conveyancing solicitor

Around the time of your mortgage application, you will need to begin the conveyancing process with a qualified solicitor. They will check on the suitability of the property you are buying, make sure it is worth what you are paying for, and advise you on your legal responsibilities.

A conveyancer isn’t responsible for the property survey, however, so you will need to contact a Chartered surveyor if you want to undergo a property inspection. Your solicitor may be able to recommend a surveyor to you but you are free to choose your own. Get

Get Conveyancing solicitor quotes here »

Step 7 – Receive your mortgage offer

After making the application, you will receive a loan estimate. You will typically receive this within 3 days of applying for the mortgage. It is indicative of the mortgage loan they are prepared to offer you and is valid for 10 business days. It will include closing costs, your expected monthly loan payments, and a notification on the interest rate if it is likely to change, as would be the case with adjustable-rate loans.

If you don’t accept the loan offer within that time frame, the conditions might change and you might have to pay more if interest rates rise.

Once you have accepted the offer or loan estimate, the lender will verify the information you have given them, carry out a valuation survey of the property you want to buy, and check your credit record.

Step 8 – Begin the waiting game

It can take between 4-6 weeks for the lender to process your official mortgage application and sometimes longer if the lender needs to check something with you.

If your application is declined, it is important to find out why. There could be a number of reasons for this, such as:

  • Problems with your credit file
  • Application errors
  • Too small a deposit
  • Mistruths on your form
  • Problems with the property you made an offer on

Lending criteria can vary between lenders so there could be other reasons for a rejected application. While disappointing, there is no need to panic. If you’re using a mortgage adviser such as ourselves, you will be given help with your next application, be that with the same lender or a different lender who may be better suited to your personal and financial background.

Final Step – Prepare for moving day

When you have received an official mortgage offer, you will need to pay your mortgage money to your conveyancer. This will include the deposit needed to pay the difference between the mortgage amount and the purchase price, and any outstanding fees that are owed, such as the stamp duty and other closing costs.

If you already own a home, you can use some of the money from the sale of your existing property towards the expenses you are required to pay. You could also use a payment gift from a friend or family member and any other monies you have accumulated to pay the closing costs that are expected on your mortgage and property purchase.

After doing all of this you will be ready to exchange contracts. Your conveyancer will arrange this, along with all other legal aspects of the property transfer, and they will explain these to you at a closing meeting. At this point, the deal between you and the seller becomes legally binding and a completion date will be put in place for both you and the seller.

Completion day is also moving day, so before this date, you should arrange for removal services, sort out such things as content and buildings insurance, and have a final walkthrough with your estate agent and conveyancer of the things you need to do before you move into your new property.

How a Mortgage Broker can help

The mortgage process can take a while but the sooner you get the ball rolling, the sooner it will be over and the next chapter of your life can begin.

Get in touch with YesCanDo Money today if you are thinking about getting a mortgage and we will speed up the process for you.

The YesCanDo Money mortgage advisors will…

Explain the types of mortgage deals to you

When looking for a mortgage deal, you can choose between a fixed-rate loan or a variable-rate loan. Most fixed loans are considered better as you won’t have to worry about changes to the interest rate during your mortgage term after borrowing money. However, we will explore your options with you when you make your mortgage enquiry.

Let you know more about mortgage costs

When applying for a mortgage, there are a number of costs related to a mortgage product, which could include the stamp duty if you decide to include it. We will explain all of these to you to help you budget for your mortgage.

Find the best mortgage deal for you

The best mortgage for you will depend on a number of factors but we will take everything into account when looking for a deal with the most attractive interest rate.

Assist you with your mortgage application

We will complete all the paperwork that is needed for your home loan and will advise you on what to do to increase your chances of a successful mortgage application.

So, don’t go it alone. We are here to support you throughout the entirety of your mortgage application journey.

Request a call back from one of our mortgage advisers

Please complete our website contact form and one of our expert advisors will call you back.

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Steve Roberts
Steve Roberts

Stephen Roberts MAQ is the founder of YesCanDo Money, Hampshire's largest no-fee mortgage brokers. With over 30 years of mortgage experience, he has advised and helped thousands of First-time buyers buy their first home and home movers buy their dream home. Speak to a mortgage expert today by completing our contact form:

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