Before putting in an offer for any property it is important to speak to a professional mortgage adviser who will asses your needs and tell you the amount of loan you will be able to achieve. The adviser will also apply to the most suitable mortgage lender to gain you an Agreement in Priciable, which will mean you have been assessed and credit checked and initially approved for amount of loan you wish to take, subject to survey and final checks.
You can now go looking with confidence for your dream home. Once you have found a property, you can now put in an offer. Once your offer is accepted it is now time to do the full mortgage application.
Now you will formally apply to the lender for the mortgage. The application is then sent to the lender with any supporting documents that have been asked for by the lender as stipulated in the Agreement in Principle. These could be pay slips, bank statements, tax returns. Each lender has their own criteria so what exact documentation needed will be stipulated in the Agreement in Principal and confirmed by your adviser.
On receipt of the mortgage application and once the lender has received payment, they will instruct the survey. There will be three survey options open to you. At the same time the lender will write to employers or accountants if they need to do so.
Once the survey is back, and provided that it has been valued at the amount you are buying, the lender will then do their final checks to the case. Providing they also have all the correct supporting documents, you will then receive the formal mortgage offer. It is very important that you read this carefully read and check all the details and conditions set in it.
It is now down to solicitors to do all their legal work and set an exchange and completion date. Once the exchange date is set the solicitor will ask for your deposit and any outstanding monies. Once the solicitor has this, exchange of contracts will take place on the agreed date and the property will legally be yours. Soon after exchange there will be completion and you move in to your new home.
As part of your mortgage application, one of the first things you will need to do is have a survey. The lender will insist on this as they will need to know that the property they are lending on is worth the price you are paying. There are three types of valuation and the type that is best for you will depend on the age and style of the property.
They are,
This is a limited inspection of a property required by Banks and Building Societies. It deals primarily with the value of the property in its present condition. It will not report in detail on disrepair items unless they are so severe that they may affect value or saleability. The surveyor will take into account what can be reasonably seen within the property, without moving the furniture and carpets, and also the general external condition of the main components that are visible from ground level within the site or publicly accessible areas.
This is a much more detailed inspection designed to give the purchaser useful information. A valuation will also be provided. The surveyor will now report on any defects that he sees and also comment on any future problems that may arise without early remedial action. The inspection will look at all reasonably accessible parts of the property internally and externally and comment generally on their state of repair and condition. The surveyor will also look in the roof area to enable the them to comment on the condition of the roof structure. This survey will be most suitable for houses over 10 years old and up to 200 years old.
This is an in depth report particularly suited to large, old or unusual properties and can be tailored to the needs of the client and type of property. The surveyor will advise on fundamental defects and any legal implications they may have. All the checks will be carried out that are covered in the Home Buyers report although additional will be covered in much greater depth. Unlike the Home buyers report you will be required to have a separate Basic Valuation adding to the cost. This survey is most suitable for older house usually over 200 years old or unusual structured buildings.
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