A beginner’s guide to the mortgage application process

If you are ready to buy your first property – congratulations! Before you put an offer in on a house or flat, it is important to have your mortgage agreement in principle, as estate agents will usually ask to see this to check that you are a genuine buyer.

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Finding a lender

To get your hands on this mortgage agreement in principle, you will need to find a lender. You can either carry out your search directly or use the services of a broker to find the best deal for you. There are plenty of brokers on the market, and the type to look for will not necessarily charge you a fee but will be clear about its commission structure whilst having a huge panel of lenders at its disposal. Always use an accredited broker with a great reputation and one that has access to broker-only deals, which are often better than those available directly to members of the public.

The credit check

When you have found a possible lender, what do mortgage lenders need? Firstly, they will want to carry out a credit check to see whether you have a good credit history; next, they will want to find out more about your income and outgoings.

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The detail: what do mortgage lenders need?

You will need to provide evidence of your salary and any other forms of regular income, usually evidenced by payslips, tax returns and/or bank statements. You will be asked to show how you spend your money, again by providing bank statements and by showing how you budget. The lender wants to see that you have a regular income that exceeds your outgoings. If you have savings or other assets, this will also be important information to share with the lender.

Before you apply for a mortgage, ask what do mortgage lenders need? You can then be prepared before you start your search and ready to provide all the paperwork and necessary details for the application process.

As with everything in the house buying process, the key to success lies in being as organised as you can, as early as you can, and being prepared to provide lots of detail and information to support your application. Organise this in advance and in anticipation of these questions and you will move through your mortgage application swiftly.

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