What is the mortgage application process in Scotland? These are the steps you need to know after you have had an Offer accepted.
Review your Acceptance or Decision in Principle
1. You now have an actual purchase price to work with so it is worth reviewing your mortgage options again. It may be better to consider a different lender rather than the one that provided Acceptance in Principle. Perhaps their rates are better or your deposit has changed etc.
Get your Documents Ready for your Mortgage Application
2. A formal mortgage application needs to be submitted along with the necessary proofs eg. Payslips, bank statements etc.
Money Laundering Checks for your Mortgage Application
3. Your ID will be checked & the source of your deposit funding checked to comply with Money Laundering Regulation.
The Lender Assesses your Mortgage Application in Two Parts
4. The lender assesses your application in 2 parts – it assesses you as an acceptable borrower and then secondly the property, using a valuation to confirm it is adequate security. Not all lenders lend on all types of property.The Lender’s Underwriter makes a Final Decision on your Mortgage Application
5. The lender may ask for additional information at any time during this process. Your application will not progress unless you provide this information.
A Successful Mortgage Application results in a Loan Offer
6. Once you are approved you and your solicitor will receive an Offer of Loan which usually last around 3-6 months.
Do not Complete on your Property Purchase without a Loan Offer
7. The Offer of Loan is the holy grail and you should not conclude on any property purchase until you have it in your hand!
Timescales to Acieve a Loan Offer
8. Depending on the lender, the timeframe to achieve a Loan Offer is a few days to a good few weeks. Be assured that we will be focussed on obtaining your Loan Offer in the quickest possible timeframe.
A Good Mortgage Adviser Coordinates all the Parties to a Property Purchase on your behalf
9. Things often go wrong, and the process doesn’t always feel joined up. We act on your behalf with all our industry professional contacts & expertise, co-ordinating the various parties to get you into your home.
