Getting a mortgage is not an easy process. For most of us it’s a necessary process, however, as only the lucky few are ever able to buy a house or acquire property without the aid of a lending institution. A mortgage is a commitment for a very long time, often for up to 30 years, and it should be taken seriously indeed. Since there are a lot of different kinds of mortgages out there, it can be hard to choose.
Even when the best choice is made, it can still be very hard to go through the motions of actually applying for the mortgage and getting it approved. Why is it so hard? What should you be watching out for the most? And how long does it realistically take to get approved for a mortgage? Here are your main questions answered.
The agreement in principle
Often it all starts with a mortgage agreement in principle. In essence, this is a procedure by which the mortgage lender reviews all your necessary information, performs a background check (to ensure all information is correct and that your credit rating is according to their requirements), and then gives you an offer based on the available options and negotiations. This, however, is only an agreement in principle, and does not create any binding obligation from either party yet. It’s a way of checking whether both parties can see eye to eye, so to speak.
Once the agreement in principle has been made, you’ll need to gather the appropriate documentation. This may include:
- Valid ID
- Documentation of income, including bonuses and overtime or extra income from other sources than the main one
- Proof of expenditures, and so on
- Details on the property you wish to buy
Waiting for the offer
Once all the documentation is received, the mortgage lender will want to verify everything and then do an evaluation of the property you wish to buy. This could take a couple of weeks or longer, depending on the situation.
Never forget, however, that the mortgage should be taken very seriously, and so perhaps it is best that it takes a while before it gets approved, as an expert mortgage broker Bristol like one from Open Vision Finance will confirm. It would be a shame for you to agree to an offer only to discover later on that the mortgage is not the ideal one (and some mortgage lenders actually do promise fast turnovers so you won’t read the fine print). Think your personal situation and personal ambition through, and never forget that there is professional advice out there in case you need it. Not only do brokers or advisors save you money, they also save you lots of headaches down the line.