The 5️⃣ stages of the mortgage application process!

🏡 The 5 Stages of the Mortgage Application Process: What You Need to Know Before You Buy!

Buying a home is one of the biggest milestones in life—and whether you’re a first-time buyer or looking to move or remortgage, the mortgage process can often feel like a confusing maze.

“How much can I borrow?”“What documents do I need?”“Why is the lender asking for more info again?”

If you’ve ever asked yourself any of those questions, you're not alone. That’s why at Creating Mortgage Solutions, we make it our mission to break things down into clear, manageable steps. 💬

In this blog, we’re walking you through the 5 stages of the mortgage application process so you know exactly what to expect from start to finish.

Stage 1: 🖊 Decision in Principle (DIP)

Also known as an Agreement in Principle (AIP), this is where your mortgage journey begins—and it's often a great confidence booster!

At this stage, your mortgage broker (hi 👋 that's us!) will gather some basic information about you, including:

• Your income and employment status

• Your monthly outgoings (like car finance or loans)

• Your credit history

• The size of your deposit

• The price range of the property you're hoping to buy

  
  

We then submit this information to a lender, who will carry out a “soft” credit check—this means it won’t affect your credit score.

If they’re happy with what they see, they’ll issue a Decision in Principle, confirming how much they may be willing to lend to you, subject to full application and checks.

Why It’s Important:

• It helps you set a realistic property budget

• Estate agents often require one before accepting an offer

• It flags up any early issues with affordability or credit

  
  

Top tip: Even if you’re months away from buying, getting a DIP early helps you plan your next steps confidently.

Stage 2: 🖊 Full Mortgage Application

Once you’ve found your dream home—or if you’re remortgaging—it’s time to move on to the Full Mortgage Application.

Here, we’ll submit a much more detailed version of your application to the lender, including:

• Your proof of income (payslips, SA302s if self-employed)

• Bank statements

• Proof of deposit

• Photo ID and proof of address

• Details about your current commitments (loans, childcare, credit cards etc.)

  
  

The lender will now perform a “hard” credit search, which will be visible on your credit file. This isn’t something to worry about if your finances are in order, but it’s worth noting as multiple hard searches in a short time can affect your score.

What Happens Next:

The lender’s underwriter will now begin reviewing everything you’ve submitted. They’re not just looking to say “yes or no” — they’re looking to make sure that you’re being lent

responsibly, and that you can comfortably afford the mortgage now and in the future.

Stage 3: 🖊 Further Questions or Document Requests

Once the lender has reviewed your documents, they may come back with further questions or request additional documentation.

This is a completely normal part of the process—even if your paperwork seems “perfect” on the surface.

Examples of What They Might Ask:

• Clarification on a recent large deposit

• Evidence of a cleared debt

• A letter from your employer confirming your job is permanent

• Additional payslips if you receive variable income or bonuses

• Proof of child maintenance payments or benefits

  
  

Why Lenders Ask These Questions:

It’s not because they’re trying to catch you out or delay the process. They’re simply required to follow strict lending regulations, and often need supporting evidence on file in case their decisions are ever audited by the Financial Conduct Authority (FCA).

As your mortgage broker, we’ll handle these requests for you, chasing the right documents and explaining anything that needs clarification.

Stage 4: 🖊 Property Valuation

Once the lender is satisfied with your personal and financial information, they’ll turn their attention to the property you’re buying or remortgaging.

They’ll instruct an independent valuation, which ensures:

• The property is worth the amount you're paying (or remortgaging for)

• The property is suitable security for the mortgage (e.g., no major structural issues)

  
  

There are different types of valuations, depending on your deposit and lender:

1. Automated Valuation (AVM)

No one physically visits the property. The lender uses online data, sold prices, and property listings to estimate its value. Common for low LTVs (loan-to-value).

2. Drive-by Valuation

A valuer may do a quick external inspection.

3. Full Physical Valuation

Someone visits the property to check it inside and out. Often used if the property is older, unique, or the deposit is smaller.

⚠️ Important: This is not a homebuyer’s survey. If you want a more in-depth property inspection, speak to us about organising an independent survey.

Stage 5: 🖊 Mortgage Offer

Drum roll, please... 🥁

Once the lender has finished their checks and is happy with both you and the property, they will issue your formal Mortgage Offer!

This is the final step in the approval process, and it means the lender is officially committing to give you the mortgage under the terms agreed.

What’s Included:

• The amount being borrowed

• The interest rate and term

• Any special conditions (e.g. gifted deposit evidence)

• When the offer expires (usually valid for 3–6 months)

  
  

At this point, a copy of the offer will also be sent to your solicitor, who will now begin preparing for exchange and completion (i.e. legally transferring the property into your name).

Congratulations—you’re nearly there! 🎉

What Happens Next?

Once you have your mortgage offer in hand, the final steps are legal ones:

🔹 Conveyancing

Your solicitor will carry out legal checks, searches, and liaise with the seller’s solicitor.

🔹 Exchange of Contracts

Once everything is signed and all funds (deposit, mortgage, legal fees) are in place, you'll "exchange contracts"—this is when the purchase becomes legally binding.

🔹 Completion Day

On the agreed date, the funds are transferred, and the keys are yours! 🏡

Need Help Navigating the Mortgage Maze?

Whether you're:

• A first-time buyer

• A home mover

• Looking to remortgage for a better deal

• Or planning to release equity for home improvements…

  
  

We’re here to make the mortgage journey simpler, smoother, and stress-free.

As experienced brokers, we work with a wide panel of lenders—including high street banks and specialist providers—to find the right mortgage for your unique situation.

We handle the paperwork, chase the lender, liaise with solicitors, and answer all your questions—so you can focus on the exciting parts, like choosing tiles, paint colours, or furniture!

Let’s Get You Mortgage Ready 🗂

Have questions about getting started? Wondering how much you could borrow? Need help understanding your credit profile or gathering documents?

Let’s chat—there’s no obligation and no pressure. Just friendly, expert advice.

📲 Call Lucy on 07791 786265

📩 DM me today

📧 Email: Lucy@creatingmortgagesolutions.co.uk

🌐 Visit: Creating Mortgage Solutions www.creatingmortgagesolutions.co.uk