The Mortgage Process
The Mortgage Process
Our experienced team of Mortgage brokers in Barry and Cardiff, we always aim to provide our clients with the best service during their mortgage application journey. This is why giving you an insight of the mortgage process, will get you prepared for what is to come, along the way keeping you informed and up to date.
Whilst we are based in Barry and Cardiff, we can cover the surrounding areas including remotely across the UK.
We have put together a 10 step mortgage process for First Time Buyers in Barry and Cardiff to get you closer to getting onto that property ladder and buying your very first home.
First step : Mortgage Advice
Congratulations, you are now taking that first step into buying your own property and getting yourself onto the property ladder and obtaining a mortgage as a First-Time buyer in Barry and the Vale of Glamorgan.
OK, we know that feeling you may be feeling right now, a little apprehensive, nervous but most importantly excited to be purchasing your very first home. We have experienced Mortgage Brokers in Barry, who will make sure that your mind is put at ease, assist you with the whole process, taking away the stress and getting you your first mortgage and new home.
What are you waiting for? Get yourself booked in for your free mortgage consultation now with our friendly and approachable Mortgage Advisers. We will gather some information from you and look what you are trying to achieve and make a start on your mortgage journey.
Second Step: Mortgage affordability assessment
Whilst you have started the process with one of our trusted Mortgage advisers, your next step is discussing the affordability of your mortgage, for now and in the future. Going through this process you will be surprised the difference between each Mortgage Lender to the next and their different levels of criteria and this is why getting a Mortgage broker is key in the mortgage application process.
The affordability assessment for each Mortgage Lender will vary but most will take a look at your monthly income, analysing any of your regular expenditures including any current debt (e.g. credit cards, loans, childcare), to gain a better understanding of whether or not you are financially capable of paying back a mortgage.
This is crucial to your process and is something we must do before we start obtaining a decision in principle so we are confident that the Mortgage lender will accept your application as we need to be completely confident that you are able to afford your monthly repayments.
Third Step: Mortgage Appointment and providing supporting documents
The next step will be the most important step of the process, every step is important but this really determines what our experienced mortgage Advisers in Barry and Cardiff choosing you the right mortgage and for YOUR needs and priorities.
When you are dealing with such a vast amount of funds, mortgage lenders have become more strict than they were in the past and this is to make sure they are lending responsibly. Our experienced Mortgage brokers in Barry and Cardiff will ask for all documentation up front before presenting it to a Mortgage Lender.
The types of documents that a lender will need to see include; proof of ID, proof of your address, up to date credit report and the last 3 months of your pay slips and latest P60 (employed).
They also usually need to see the last 2 years proof of Tax Calculations and Tax Year Overviews (if you are Self-Employed in South Wales), proof of any additional income such as state benefits or maintenance, proof of your deposit and the last three months of your own personal bank statements.
(These requirements are just the basic, so these may vary)
Fourth Step: Getting your Agreement in Principle
Once the appointment has been completed, all documentation produced, your needs and priorities discussed, we will present you with the most suitable recommendation. The next step would be getting the key document for you to start your house hunting search and getting you one step close to getting on the property ladder, obtaining an agreement in principle.
If you have already been searching you may know this by other references, such as ‘Decision in Principle’, ‘Mortgage in Principle’, as well as ‘DIP’ & ‘AIP’. Don't let it confuse you, they all relate to the same thing.
The reason why making sure you have a Mortgage Agreement in Principle is so important, is because it proves that you have passed a lenders primary credit scoring system, whether that be from a hard credit search (this leaves a footprint on your personal credit file) or performing a soft credit search (which typically does not leave a footprint on your personal credit file).
Having this still doesn’t mean you are 100% going to get a mortgage, but it is definitely a step you will have to take on your mortgage journey. Also, some sellers/estate agents require this document now before you go and view any of their properties, this is to make sure you are serious and have potential funds in place and in the best possible position to making any offers.
Generally speaking, you will find that an AIP tends to last somewhere between 30-90 days. If your Agreement in Principle expires before you have chance to use it, we can easily renew this for you.
Fifth Step: Choosing the right Solicitor/Conveyancer
The next step will be to find yourself a Conveyancer who can assist you with the legal aspects of buying your home. Your Conveyancer will be used for the process of transferring of legal ownership for a property between two parties, from seller to buyer.
What to expect from your Conveyancing Solicitor. They will help you out with contracts, provide you with any required legal advice, conduct local council or authority searches, deal with Land Registry arrangements and finally, the most important part, the transfer of the funds to pay for the property in question.
Whilst we do not offer any of these services in-house, we work with Thomas and Thomas Solicitors, who are based in Bridgend and we use these as we have a great relationship and receive great customer experience from.
If you would like a quotation, please get in touch.
Sixth Step: Making an offer on a property
Now this is the exciting part of the journey, house hunting and finding that perfect home. Whilst you have been dealing with our Experienced Mortgage Advisers in Barry and Cardiff for some time now, we fully understand where you are and what are your next steps.
As previously touched upon, with an Agreement in Principle to your name, you will be in a much better place for making any property price negotiations with the seller. Don’t be afraid to ask for a lower price, but be wary not to insult the seller with a price that is too low.
Once you have had that Offer accepted, get back in touch with your Mortgage Broker in Barry and Cardiff to finalise the last few steps of your mortgage journey.
Seventh Step: Submitting your Mortgage Application
After having your offer accepted on the property, our next steps will be providing any up to date documents in readiness to submit your Mortgage Application in full.
With everything checked and prepared by your dedicated Mortgage Advisor in Barry and Cardiff, we will then be ready to submit your application to the lender and upload any relevant paper work that the Lender requires.
Once this has been completed it will be fully assessed by the Mortgage Lender and depending on their timescales, we will update you along the way with timescales and any delays making sure this process is as stress free as possible.
Eighth Step: Property Valuation
Between the application being submitted and the official Mortgage offer, a property valuation will be carried out by an accredited company nominated by the lender.
They carry this out to establish the property and how much its worth, this is so they can make sure that the property (their security) isn't worth less and represents the true valuation. This is to make sure that if for any reason the property had to be repossessed, it wouldn't put them out of pocket.
With many lenders only offering the basic valuation, there are different property survey types available to you. The prices of these varying on which one you choose but if you would like an additional valuation to be carried out we are happy to provide you with a quotation.
Ninth Step: Receiving your Mortgage Offer
Finally, the mortgage offer which means your mortgage lender has thoroughly gone over your application and supporting documents and now presenting you with their formal mortgage offer. YEY!
Our experienced Mortgage Advisor will now review this offer on your behalf to ensure everything is correct.
The next step after your formal mortgage offer has been received, will be for your Conveyancing Solicitor to take your purchase all the way to completion.