How long does it take to apply for a mortgage?
So you put the offer in to buy the property. It's all been accepted and you have submitted your mortgage application. The estate agent is asking you when the property valuation is going to be carried out and what date you are going to be able to exchange as you are in a chain of houses that all need to complete on the same day.
But you have no idea what's happening as your mortgage broker is useless or worse still you have applied to your own bank or building society for a mortgage and they are not now returning your calls.
Well first of all I'd advise you to have used the professional mortgage brokers at as they keep you fully informed of the process every step of the way. But as you are reading this I'm guessing you didn't and you are desperately searching for answers.
Well OK let's look at the process your application goes through once it reaches the lender.
The procedure is split into important categories which enable each department to concentrate on only their role. Doing it this way enables everyone to become really skillful at their job, thereby making it as slick as possible.
The procedure of setting up your mortgage can look quite complex but they know what they are doing. Though you might not think so sometimes.
They review the content of the mortgage application first spotting and missed info. They will then chase that up from you. They will instruct the valuer.
They usually want to check evidence of earnings, including pay slips etc. Check your identity by way of passport or driving licence and also check you live where you say you do. They might also want to see bank statements and ask your boss for a reference.
Some info is hugely important so hopefully you have filled in the application form very carefully
- There is always a declaration for you to sign on the application that gives the building society the authority to get references etc. These include credit checks, fraud prevention agencies, and your employer.
- Only when the checking is complete and the property has been valued will the mortgage offer be sent out to you for checking.
- Get your solicitor to have a look at it if you are not sure what it's all about.
- So the complete process takes a minimum of 5 working days but the reality is 2 to 3 weeks.
- Speak to one of our expert brokers at if you want further information.
Loan Mortgage Application
Mortgage is defined as a term when a loan is taken based on the guarantee of the borrower's property. A mortgage is primarily a document that gives the lender the right to utilize the borrower's property as collateral or security for the loan purposes.
Whenever a new loan is taken a loan mortgage application is also taken along with it. This mortgage document makes sure that the person who has taken the loan gives guarantee that the loan amount will repaid properly based on the payment schedule.
For example, if a person wants to buy some land and wants to take a loan from any financial institution or a bank; he can do so with a loan mortgage application. Once the application is received, the bank will provide the necessary amount in lieu of mortgage of his house.
Borrower's house mortgage will usually involve an interest, which will be amortized over stated period, normally its thirty years. The sum that the borrower will pay to the bank will be related to mortgage amortization. Mortgage is also termed as a term loan which is secured based on the borrower's real estate property.
But, the borrower would not be allowed to sell his property unless and until he has fully paid the mortgage that he had taken against his house. However, he might repay the original mortgage by going into another mortgage on any other property that he owns.
You need to follow some steps while making a loan mortgage application. First and foremost, the person who wants to borrow money needs to get a nod for principle amount from a lender (a bank or a financial institution) before selecting the mortgage property.
Through this the lender can easily make a decision on how much loan he is ready to give. For this purpose, the information required will include the person's employment status, income, and what type of property or house does the person is looking to purchase. After this the lender can held the person in making a decision or a judgment.
The person who wants to get the loan will need to appoint someone to see the legal paperwork. Once he has decided that which property he wants to purchase, he can go ahead with the loan mortgage application by filling the form provided by the lender.
To check the person's fixed income, the lending institution may ask for written reference from a bank or an employer. After this, the lender will evaluate and value the property so as to be certain that the property has the worth that the person who is taking loan has agreed to repay.
If the value of the belongings is not equal to the amount being borrowed, the lender might review the amount of loan. It's a good idea if borrower has conducted a survey in advance so that there are no surprises when the lender reviews the property for its value.
Once the lender agrees with the mortgaged property value and any references provided by the borrower, a formal offer for the application related to loan mortgage is made and the loan amount is forwarded to release.
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