What’s next after the Mortgage application.

Many people feel greatly relieved when they have completed a Mortgage application, or the broker comes back to them to say they’ve been accepted. However, this is not the end of the house purchasing story. You may think that the time spent with the Mortgage Advisor and the broker has got you the house, but it’s only halfway through the process. So here are some of the other things that you will still need to do before moving in. Be aware they will all cost you money and time.

Image credit

The first stage is usually from the Mortgage lender. You should have the following ready for them. It’s a good idea to make the application with them to hand. You will have to provide documentary evidence of your earrings. It is one thing to say you earn £40k a year, but now you must prove it with payslips, usually a month or three months, and if you are self-employed, you will need to ask for three years SA302’s. These are helpful records that you can get from Her Majesty’s revenue and customs. There will be a specific person at the lender to help you get through this. Anything else income-related that you have claimed to earn will also be needed. This includes benefit payments like Child benefits and pensions, for example.

Whilst this is being processed, you will also have to pay for a valuation of the property. The bank is not going to pay for this, and they will not lend unless they know that the property is a safe investment. There are three levels of valuation that you can choose from. If the property is a new build, then a basic level one is all that is required. If the property is over 10 years old, then a  homebuyers report is more appropriate. If the property is more than 30 decades old, then a level 3 is needed. However, the bank is generally just happy with a level 1.

Image credit

If you are a first-time buyer, you don’t have to worry about Stamp duty land tax. If you are liable, this will be discussed with your solicitors. If you think that you are due one, then a Stamp Duty Refund  should be looked  into by Sentientsdlt

Hopefully, the property will come back as being sound and in no need of any work. However, if there is a problem, the home may need some job done to it. If this is the case, you may want to renegotiate the price with the seller.

Aside from that, you will need the work of the Solicitors. As specialists, they will be called Conveyancers. They will look at all the legal aspects of the purchase. These include the freehold or leasehold element and if there are any restrictive covenants in place.

Jack Henry

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to Top