The process of obtaining a mortgage seems to be long and complicated but in fact it can be divided into four main stages:
Agreement in Principle (AIP)
– it is the first step in the process of getting the mortgage. It is the preliminary agreement of the lender, which shows their agreement to lend you a particular amount of money. The lender will determine the amount you can get on the basis of your credit profile and earnings. In most cases you will get a certificate valid for about three months which is a very significant factor in your search and credibility for estate agents.
Full mortgage application-
– after receiving the initial agreement from the lender the (AIP) your financial adviser is entitled to submit the full mortgage application. This is the stage when you have already found the property and your offer is accepted. At this stage you must pay your booking fee and survey charges.
– at this stage your application is being examined. The person who decides on credit grant- an underwriter verifies the information given at the initial stage and checks all documents submitted to the lender by your financial adviser, among which are:
Address and earnings confirmation,
Proof of identity
Proof of deposit
At this point a surveyor is appointed and the property is inspected. The valuation report is sent to the lender and is verified again.
-when your application has been approved and valuation is satisfactory, the lender produce a mortgage offer which is a confirmation of a mortgage grant