If you are just starting to consider entering the housing market, then everything can be quite daunting if you don’t even know where to start. This helpful guide is designed to take you through the process of applying for a mortgage.
If you are a first-time buyer, then there are a few steps you should go through before you send off a mortgage application.
First, you must check your credit score. If your credit score is good, there is little to worry about, and you can go forward and apply for an ‘Agreement in Principle’, or an AIP. An AIP certificate is a declaration from a lender stating that, based on the basic information provided at this early stage, they will ‘in principle’ be happy to lend to you. This can be attained from a lender over the phone, online, or in your local banking branch, and can be applied for before any offer has been made on a property. Attaining an AIP is not imperative to a mortgage application, but we would not recommend applying for a mortgage without one, as it can help you stand out as a prospective buyer. Once you have attained an AIP you can go forward into a full application for a mortgage.
WARNING: whilst an AIP is a good way to prove to estate agents that you have a good chance of securing a mortgage, it can also be deceptive, as it is not a guarantee. It is also important to consider that to get an AIP you will need to be credit checked, and multiple credit checks can negatively affect your credit score.
When you have an AIP, and your offer on a property has been accepted, you will be able to complete an application for a mortgage. Once you have decided which lender you will apply with you can apply over the phone, online, or in branch. If you would like advice from a Mortgage Consultant when going through your application, then you must apply over the phone or in person at a branch.
In order to progress your application, you will need to provide some documentation, such as: