There is no doubt that buying a property can be one of life’s most stressful experiences and a big part of this can be waiting to hear if your mortgage application has been approved.
So, how long does a mortgage application take to be approved?
Although in some circumstances this can take as little as 24 hours, you should expect to wait about 2 weeks on average while the mortgage lender gets the property surveyed and underwrites your mortgage application.
The intention of this guide is to give you an idea of how long each step of the mortgage application process takes from seeing a mortgage broker and getting a mortgage agreement in principle, to getting a mortgage application underway once a property has been found and getting a mortgage offer. Then onto the exciting part of completing, picking up your keys and owning your very own property.
How long does it take to get an agreement in principle?
So, you are about to buy a house or perhaps you are just about to start looking for a property. The first piece of information you will need is how much of a mortgage you will be able to get. Each bank and building society will produce an agreement in principle for you if you ask them which is usually the maximum amount the lender would be willing to lend you, based on your income and any debts you may have. It usually takes 24 hours to get a mortgage agreement in principle.
How long does a mortgage application take?
You will have obtained an agreement in principle and then gone hunting for a house. Your offer has been accepted and you now want to get everything underway. The mortgage application is usually a continuation of the agreement in principle and therefore you now need this to be taken to a full mortgage application. In order to do this, the mortgage lender will need to know how much you have agreed to buy the property for, the property address, the estate agent you are buying through and the solicitor you want to use for the purchase conveyancing.
The lender will require your latest 3 months payslips, last 3 months bank statements and will also need to see your passport and/or driving licence. A mortgage application takes 24 hours based on the assumption that you already have the documents together that the lender needs. Any time spent at this stage getting these items together will only add to the time it takes to get the mortgage application underway.
How long does it take to get a valuation done?
Once your mortgage application has been submitted it is possible the mortgage lender may ask for further information. Once all further documents and information have been received the lender will instruct the surveyor.
The surveyor’s office will contact the estate agent to arrange access to the property you are buying so that they can carry out the survey. Most surveyors will complete their report on the property the same day as the property inspection. This will be sent electronically to the lender for the lender’s underwriter to make a decision on.
The underwriter will be looking for confirmation from the surveyor that the property is worth the amount that you are buying it for and that the property is structurally sound. It takes 7-14 days from application to get the valuation completed.
How long does it take between mortgage valuation and offer?
Once the valuation survey has been received from the surveyor, the lender’s underwriter will have everything at hand to make the final decision and take the application forward to a mortgage offer.
When the lender is willing to go to offer you will be mailed the mortgage offer. The solicitor carrying out your conveyancing will also be sent their own copy of the mortgage offer. It can take up to 17 days to receive a mortgage offer (although it can be as quick as 2 days).
How long does it take to exchange contracts?
Once your solicitor receives the mortgage offer, they should be fairly close to being able to exchange contracts which takes about 8 weeks.
While your mortgage application was underway, your solicitor has been proceeding with the conveyancing needed for your purchase. The solicitor will have applied for the local authority search which takes approximately 4 weeks, depending on the local authority and how busy the housing market is at that point in time.
Your solicitor will also have been communicating with the property owners’ solicitors, asking any questions and making any enquiries.
Once your solicitor has your mortgage offer, local authority search and enquiries they will arrange for you to visit their offices for a pre-exchange meeting. At this meeting they will cover any problems or concerns that have been highlighted and you will also be asked any preferential dates for completion.
How long does it take to complete?
The day for picking up your keys and moving into your new home is nearly here. Once you have exchanged contracts your solicitor will arrange with your lender to draw the funds down (mortgage) so that you can complete and officially own the property.
The time between exchange of contracts and completion can vary as it is decided by the owner and buyer. The quickest possible time is 1 week, as it takes this long for the solicitor to give notice to your lender that they require the funds to complete. The average time between exchange of contracts and completion is 4 weeks.
What time on completion day will I be able to pick up the keys?
This really depends on where you are in the chain and how long the chain is. If you are buying an empty property, then the completion will be quick and there is no reason why it can’t be before lunchtime.
The higher you are up the chain, the later in the day it is likely to be. When the chain is very long (8-10 properties) completion can be as late in the day as 4pm.
Is it possible to make the process of buying a property quicker?
There are a couple of ways that buying a property can happen a little quicker –
Buy a property that the owner has moved out of – One of the reasons that the process of buying a property can take so many weeks is down to the length of the chain. Therefore, if you find a property that is unoccupied this will more than likely mean that the chain will be very short and may also mean that the owner will be keen for the sale to proceed as quickly as possible.
Use an independent no fee mortgage broker – A lot of time can be lost during communication between the estate agent, solicitor and lender. A mortgage broker will speed the whole process up as they communicate with all the different parties. It is essential that a mortgage application gets off to a quick start and a mortgage broker will have an understanding of any banks and building societies that have issues with speed at that time. The mortgage broker will therefore be able to avoid these lenders. Once the lender has been chosen the mortgage broker will also know what documents and information will be needed and will be able to submit this with the application. This can shorten the process to mortgage offer by as much as 2 weeks.
So, how do I get a mortgage?
YesCanDo Money would love to help you. YesCanDo Money are an independent family whole of market mortgage broker. They will be able to search the whole market to not only find you the best rates and deals but also to speed up the house buying process for you.
Sounds good, however you may be wondering how much this service is going to cost? The answer is: not one penny. YesCanDo Money are a NO FEE mortgage broker. YesCanDo Money get paid by the lender and therefore do not charge for their services.
So, let’s get you off to a quick start. Get a mortgage agreement in principle agreed. This will give you peace of mind that you will be able to get a mortgage and also will make you aware of the maximum mortgage you will be accepted on.
Speak to one of our experienced independent Portsmouth based mortgage advisors for free mortgage advice.
Will my lender let me rent my property out?
If you need to move out of your property, one of the first questions you will ask yourself is ‘will my lender let me rent out my property?’ The answer is, probably not! Although a few banks and building societies may give you consent to let your property, the majority will not.
This is a question often asked when needing to arrange a mortgage. Most lenders will not turn you down for a mortgage as long as you do not have an over-reliance on the overdraft.
Step 1 – GET IN TOUCH
Call us on 02392 373 235 or message us on WhatsApp. We will then make contact and ask you a few questions about your situation and arrange a meeting. Remember we charge. NO FEE for our service! You will need to know these bits of informtion if you’re a first time buyer looking to buy your first home.
Step 2 – DISCUSS & GET ADVICE
One of our local mortgage advisers can meet with you or alternatively have a chat over the phone. This will allow us to get a clear understanding of what you want to achieve and how we can help.
Step 3 – WE SEARCH THE MARKET
We will search the WHOLE mortgage market and find you the best rates and deals. We look at the best overall value of a mortgage deal for you and your situation. Get the best mortgage rates and deals!
Step 4 – MORTGAGE READY
Once you choose your best mortgage deal, we will put it an application. Once your application is successful you will receive a decision in principle(DIP). Most estate agents require a DIP to accept an offer.