The 5️⃣ stages of the mortgage application process
🖊 Decision in Principle - Also known as an Agreement in Principle, this is the first half of the mortgage application, where your broker will provide a lender with your basic information, who will then do an initial credit search (usually a “soft” search) and confirm how much they would be willing to lend to you, subject to full underwriting.
🖊 Full Application - This is the second half of the mortgage application. This is where your broker will provide the lender with further information along with the documentation to evidence your income and commitments. The lender will do another credit search at this stage. This would be a “Hard” search.
🖊 Further Questions - After reviewing the application and documents, the underwriter will then provide a list of questions and/or further documents they require. This isn’t because they’re trying to get out of lending you the money, this is because lenders have to evidence that they are lending responsibly, and just want to keep certain things on file should the case ever get checked by the FCA.
🖊 Valuation - The lender will instruct an independent valuer to visit the property to check the properties value, which is adequate for the amount that you are looking to borrow. Depending on the size of your deposit, they may not even need to visit the property and just do their checks with data available online.
🖊 Mortgage Offer - The mortgage offer is official confirmation from the lender that they are happy with your application and will provide you with the mortgage.
If you need some help with your mortgage journey, we are here to help you.
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