The mortgage process EXPLAINED BY CHRIS ELLIS YOUR MORTGAGE BROKER IN OXFORD.
A rough guide to the typical mortgage application process for a property purchase:
1. Application
We complete the lenders mortgage application form. This can be either online or as physical document requiring posting depending on the lender requirements. The completed form is submitted to bank with your financial documentation, and often at this point payment is required to cover booking or bank arrangement fees, and the cost of valuation (if applicable).
2. Underwriting
On receipt of the application, the bank will underwrite the case to ensure affordability and accuracy of the information provided. Underwriting usually involves examining the documentation and may also include external checks such as: a credit search, identity verification, money laundering checks and an employment reference.
3. Valuation
Once the underwriter is satisfied the file presented meets its risk criteria, the valuation will be instructed. This may involve a visit to the property in which case contact and availability details of a key holder will be required e.g. the estate agent or the property owner.
4. Mortgage offer
Upon receipt of a satisfactory valuation report the bank will issue the mortgage offer subject to conditions. A copy of this document will be provided to you and your solicitor prompting the legal formalities prior to completion of the sale.
5. Exchange of contracts and completion
After exchange of contracts the solicitor will contact the bank to arrange the release of funds and ask you to deposit your own cash contribution plus their fees into an escrow account. Prior to exchange you must have a buildings insurance policy in force.
Oxford Mortgages does not charge fees for mortgage advice; commission is received from the lender.
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