Buying a house is stressful and using the services of a mortgage broker is one way to ease that stress.
A mortgage broker will guide you through the application, speed things along, make sure there are no errors in your paperwork and generally make the whole process easier for you.
Once you’ve had an offer accepted or you make the decision to re-mortgage, you’ll usually want to move things along as soon as possible.
My job is to manage the process of a mortgage from application stage to completion.
There isn’t too much you can do to influence how fast your loan moves along the mortgage approval assembly line, but what you can do is eliminate unnecessary extra steps and delays that tend to prolong that process.
Practical tips on how to speed up the process …
In order to complete and submit an application, there are certain documents that we need. If you have these prepared in advance, it will save the whole process from being halted because you can’t find your last payslip for example. Whether it be a first time buyer mortgage or a re-mortgage, these documents are all vital.
1) Your identity
Perhaps the main one…
A lender has to see proof of your identity and this must to be a certified photocopy of your passport or driving licence. If you want us to certify the document for you then we need to see the original. If you prefer you can ask your solicitor/accountant/bank to certify the document for you.
We can’t submit your application if the photocopy of your passport or driving licence is in colour. This rule is in place to protect you - if someone obtains your colour copy you’re at risk of identity fraud. It’s also not something that’s negotiable and all lenders will have the same rule.
2. 'Wet' signature
Most documents have to be verified by another person, for example your passport. In these cases, DON’T photocopy the signed version; copy it and then have it signed. We have to receive the ‘wet’ signature – again a rule that isn’t set by the us but is in place to protect you and us.
3. Your outgoings
Bank statements and payslips must be no more than 3 months old.
Council tax statements are an exception as they’re issued annually. This must be the most recent bill. Bank statements must not be transaction statements, but instead must be full statements showing your name, address and bank details.
In my experience, not being prepared could mean the difference between the application taking 5 weeks or 3 months. The quicker the documents are sorted, the quicker the valuation can be arranged and the quicker the funds will be available to you.
A broker will help you through the process from pre-application right through to having the keys in your hand.
4. The deposit
Many first-time buyers are gifted a deposit from family members to get on the housing ladder. There are rules around who you can accept money from for this deposit and proof that it is in fact a gift not a loan is needed by your lender. Our experience in dealing with various lenders means we can advise you on the wording of the supporting letter needed.
The crucial point is that this sum of money must be a gift, with no arrangement for the home buyer to pay back the money. Immediate family are usually permitted but some lenders may not allow distant family members or people who are not related to you to gift you cash. You will need to provide a gift declaration letter stating that you are under no requirement to pay it back and that they give up any legal interest in the property.
Another source of deposit is savings and for these we will need statements from the account you’ve been saving in to show the deposit building over time. For any unusually large deposits of money we will need a statement explaining the source.
1. Have all your paperwork in place before you apply – payslips, bank statements, proof of address.
2. When having documents certified elsewhere, get black and white copies of your documents, not colour.
3. Make sure you send in the ‘wet’ signature document – ie not a copy of a signature.
4. Have proof of how you’ve sourced your deposit – savings or gift.
A mortgage broker deals with lenders on a day to day basis, meaning they are familiar with the application process for each one and can help to process your application with minimal delay.
If you’d like some help or advice, or you’re ready to apply for a mortgage, get in touch and we’d be happy to help.