IF you are looking to buy a new home you might be wondering how long your mortgage application will take.
This can vary depending on a number of factors but we have everything you need to know.
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Getting approved for a home loan can be a challenge, especially at the moment since mortgage rates are going through the roof.
On average, a mortgage lasts for 25 years but can last anywhere between six months to 50 years.
Once you have found the house you want to buy you can apply for a mortgage through a bank or another lender.
One important thing to bear in mind is that a mortgage is secured against your property so if you fail to pay it you could lose your home.
How long does a mortgage application take?
Usually, a mortgage application takes two-to-six weeks to be approved.
But of course, every situation is different and could depend on a few key factors.
This includes the lender you apply with, what information they’ve asked you for, and how complex your situation is.
The process can be accelerated if you use a mortgage broker who will be able to find you the best deals.
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Usually, the application process happens in these steps:
- Finding a deal you want
- Speak to an advisor to get a mortgage in principle
- Complete the application
- Wait for your estate agent’s valuation
- Your solicitor authorises the completion of the mortgage on the property
What documents do I need to apply for a mortgage?
You will need to make sure you have all the right documents in order before applying for a mortgage, and there are a lot of them.
The three main categories are proof of ID, proof of income and proof of expenses.
Lenders will also look at your credit score before they decide to lend to you, so it’s important that you’ve got a good score before you apply.
Here is a list of documentation that you will need to have ready, but bear in mind different lenders may ask for different things.
- Current photo passport or driver’s licence
- Most recent utility bill (gas/electric etc)
- Bank statement or credit card bill
- Payslips
- Self-assessed tax return forms (if self employed)
- Credit check report
- Evidence of where your deposit is coming from
How to apply for a mortgage
You’ll need to save a deposit before you can get a mortgage.
The average for first-time buyers is £50,000.
When you have found the house you want you can apply for a mortgage through a bank or other lender.
What kind of mortgage you can afford will depend on your financial situation.
This will depend on factors such as your earnings, how much you spend a month and the deposit you are putting down.
Luckily, many online calculators are available to help you estimate what mortgage you can afford such as MoneySuperMarket’s.
Most people get advice from a mortgage broker.
These are essentially qualified middleman who has a duty of care to recommend a suitable mortgage for you.
If you do choose to use one, you may be able to get better deals than ones offered directly by the lender, and if your mortgage turned out to be unaffordable then you can complain and be compensated.
But their services do come at a cost and you’ll be required to pay a fee of around £500, and sometimes there’s the agent’s commission on top to think about too.
Once a formal mortgage offer has been made it is usually valid for six months.
You should expect to receive your first mortgage payment notification within five to seven working days of completion.
There are a number of ways you can boost your chances of being accepted for a mortgage.
And here is a full list of banks cutting mortgage rates, and what that means.
We also explain what a tracker mortgage is and how exactly they work.
