Mortgage Application Process
1. Preliminary Stage:
Purchaser obtains initial advice re budget/size of mortgage – (lender may issue a mortgage approval certificate)
Purchaser finds property, makes an offer ‘subject to contract’ and completes an application form.
2. Application Submitted
• Lender establishes borrower’s ability to service the loan and the suitability of the property as security
• Lender requires a valuation to be conducted:
a. Basic valuation – protects primarily, lenders’ interest.
b. Home Buyer’s Report – greater protection for borrower
c. Full Structural Survey – more comprehensive, greater protection for borrower.
3. Offer in Principle
Provisional offer subject to certain items ie Valuation references, Existing Mortgages/ bank details
3a. Firm Offer
Firm offer of advance
4. Solicitor’s / Conveyancer’s Role
Purchaser appoints a solicitor / conveyancer to investigate title by searching:
• Land Registry if registered land
• Land charges Registry if unregistered land (checks history of property over last 15 years to establish good ‘root of title')
Draws up draft contracts for purchase (called a legal charge/mortgage deed).
5.Exchange of Contracts
Purchaser legally liable to complete
Deposit is paid where applicable
Date set for completion
Solicitor prepares report on title and requests funds from lender
Life policy put on risk
Place building insurance on risk
Monies transferred by solicitor
Solicitors fees, Stamp Duty and / or Mortgage Indemnity Guarantee Premium Payable
Keys handed over
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