LIVE 24-SEVEN
THE HOME BUYING PROCESS MORTGAGE APPLICATION PROCESSING FROM THE LENDERS PERSPECTIVE
In the April edition we looked at the mortgage application process up to submitting your mortgage application along with the documents that would be required to support the mortgage application, in this edition we will look at the lenders processing of the application in the eyes of the mortgage lender, this is the work that the lender will complete to enable them to eventually issue a formal mortgage offer.
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Once the mortgage broker has submitted an application on your behalf to the lender, this is in most cases an online portal system but some lenders may still require a paper based application completed, this is then sent to them in the post, the requested documents will then need to be either uploaded to the lenders on line portal or sent in the post to their processing department.
To help with the processing of an application packaging the application with all the required documents is key as this will enable the lender to make the final decision sooner. This decision is made by a mortgage underwriter.
VERIFYING THE DOCUMENTS
Lenders will analyse the documents that are submitted, they will study the bank statements to make sure the accounts have been run in an orderly fashion, they are looking for declined direct debits or returned cheques for non payment, they will also look
to cross reference the salary credited to the account from the net salary payable from your payslips, for self employed this differs as your income will vary from month to month so income is based from your yearly accounts, they will also look for regular monthly commitments that will be on going such as loans, credit card payments, child care costs & maintenance payments as these will affect their affordability calculations. When all the documents have been verified & approved by the lender, they will then at this stage instruct a valuation to take place.
VALUATION INSTRUCTION
A valuation will normally be automatically instructed within 24 working hours of an application being approved. When this report is then returned to the lender, the content is then reviewed & provided there are no issues with the property, a lender will then approve & pass the case to formally issue the mortgage offer.
A good & professional mortgage broker is sometimes vital in the home buying process as they will keep you up to date
with progress along with any possible additional documents or information that may be needed to obtain the most important mortgage offer.
MORTGAGE OFFER
Once the formal mortgage offer is issued, this ends the processing from the lenders perspective as the remaining requirements are now the legal work completed by your appointed solicitor, we will look at these requirements in the next issue in June.
Peter is one of the panel experts for the Grand design Live TV show & is found in the 2019 vouched for guide to the UK’s top rated financial advisers
For further information please contact Peter Hunt on: 0121 503 0961
www.moneywatchfinance.com
LIVE24-SEVEN.COM
THE MIDLANDS PROPERT Y GUIDE MONE YWATCH F INANCE
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