A mortgage is an agreement between a lender and a borrower. This contractual agreement states that the lender has the right to claim the borrower’s property if the latter fails to repay the amount and the interest. Mortgages are commonly used while purchasing a new property. The mortgage advisors in Market Deeping will help you understand the dos and don’ts of the mortgage process.
Dos
1. Get pre-approved for a mortgage: Before searching for properties, you must get pre-approved. The process of mortgage pre-approval encompasses income verification and credit checks. It will determine whether you are eligible for a mortgage loan.
2. Check all the little details: Before applying for a mortgage, check all the details, like solicitor checks and surveyor’s valuation. These aspects are likely to change when you are a part of the chain. Besides these elements, you must remember the expiry date of your mortgage offer. In most cases, the offer lasts for six months. You should note it to ensure the home-buying process is completed before the expiry date of the mortgage loan.
3. Connect with a mortgage advisor: Undoubtedly, it is one of the best decisions. We can’t be aware of the steps involved in the mortgage. Also, we don’t have adequate knowledge of the legal implications it carries. This is where hiring a mortgage consultant can be immensely beneficial. An experienced mortgage broker can give you personalised suggestions on the apt deals based on your circumstances. This will save you time, money, and effort at large.
Don’ts
1. Don’t apply for a mortgage if your financial condition isn’t sound: Most people commit the mistake of applying for a mortgage even if their economic condition isn’t sound. If you cannot repay the amount and the interest, the lender has the right to claim your property.
2. Don’t forget about extra costs: If you think a mortgage is the only expense, you are wrong. You must also consider how much it will take for annual property maintenance. Hence, it’s recommended that you add another 10% per year to your budget.
3. Don’t give false details: You should provide accurate credentials. Falsifying details is a crime. At the same time, you mustn’t miss any details. Check the application carefully before signing it. Mortgage lenders conduct rigorous checks of the information mentioned in your application.
David List Mortgage Consultants Ltd. offers excellent mortgage advisory, general insurance, and protection insurance services. We are registered with the FCA, and our mortgage advisors in Market Deeping hold qualifications in CeRGI, CeMAP, and CeRER.