The usual format is to look around your locality and spot a property for sale . . . you like the look of it and go to look at it. Once there you like what you see and suddenly you realise you might actually want to buy it but of course, you don’t have the funds in your savings account. This is where the mortgage comes in but it is not straight forward to get hold of one and many steps are needed between that first dewy eyed viewing and getting your key to the door.
You must apply for a mortgage in a formal sense and so as not to waste the lenders time or yours, you need to ensure some things are in place. Do you have any savings or access to money for the deposit ansd the legal fees? Once you have looked at your financial assets – if a couple, then there is the potential for parental loans to top up the initial sums needed. Well, having found that you can put forward the appropriate funding for the deposit and arrangement fees if neccssary, then the official offer for the property must go in and be accepted by the vendor of the property. This is when the fun begins. From the moment the vendor accepts your offer, the process starts ticking. The selling estate agent will often suggest a lender – not always the cheapest on interest rates – watch they are not tied in a deal that gets the agent hefty commission on your successful application. The agent will also ask you to nominate a conveyancing solicitor through whom all the dealings will now proceed.
The next step will be for the agent to contact your solicitor with details of the property and before any mortgage offer can be made, the lender will need to see the results of a survey which they will arrange, payable in advance by the you, the buyer. There are various official searches to be made of the local council – is there a planning application outstanding over the property or is it in a blight area; there are many things the council might know about and also the lender needs to know if the last owner defaulted on their mortgage payments etc. Anyway, these all trundle ahead and eventually, the lender will be satisfied that the buyers both/all earn sufficiently to qualify for a mortgage; that the property is correctly valued and is free to be sold. They will then make an offer of mortgage funding with a whole list of terms and conditions. It will generally be 25 years and not be available to anyone over the age of 50 without special conditions.