Application to completion
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Mortgage Application to Completion
What happens next, and in what order?
This is when many buyers can feel confused. There are three main stages of the application process, from application to completion.
The credit check and initial underwriter decision
Once your Mortgage Broker has submitted your mortgage application, a full credit check will be carried out.
Mortgage companies use an underwriter to complete a full affordability assessment which will involve a detailed review of your financial situation. Your broker will have asked you to provide the necessary evidence as part of your application.
Underwriters are responsible for deciding whether to accept or decline a mortgage application. They do this by considering various factors relating to your finances, including your credit history. This is how they determine the level of ‘risk’ involved in lending you money.
Once the underwriter has completed their checks, the Lender will instruct a Valuation. This is sometimes called a ‘survey’.
There are three main types of survey: a basic valuation for mortgage purposes, a home-buyers report or a full structural survey. The Lender will instruct a basic valuation for mortgage purposes but you can choose to upgrade this to either a Homebuyers Report or a Full Structural Survey.
Click here to download a guide to the types of Property Survey’s available. This is a useful guide to help you decide which Survey to choose.
Do ensure that you discuss this with your broker before selecting your survey, as this is a key part of buying a new property.
Final Underwriting and Mortgage Offer
Once the valuation is provided by the surveyor, the underwriter will review the valuation report.
If the property value is as expected and all affordability assessments have been completed, the lender will issue a ‘Mortgage Offer’ which will be sent to your solicitor. At this stage, the broker’s work is largely completed as you will be liaising with your solicitor who is responsible for completing the legal work with you and working towards a date for competition.
What is ‘Completion’?
Completion is the day the mortgage funds are released to the seller and the property purchase is complete. What you really want to hear is, the mortgage is complete, and the property is now yours!
So how long will this process take? On average, once the full mortgage application has been submitted it usually takes two to four weeks for the offer to be issued.
The more accurate answer is, it depends.
It depends on which lender you are applying with, the information they require, and the complexity of your individual situation. A good mortgage broker will endeavour to ensure that this process is completed as smoothly and efficiently as possible.