How long does it take?
Key To Mortgages | This is probably the most asked question I get!
So, the most important stage is getting your mortgage approved and this can take as little as 24 hours. The important thing to understand is that the lender has a three-stage approval process.
Stage one — An agreement in principle. This is a decision based solely on the information submitted to the lender and information they can obtain through the various credit reference agencies. No documentation such as payslip’s tax Return’s or bank statement are submitted at this stage, hence the term “Agreement in Principle” A full lending decision is made once the lender is in receipt of your supporting documentation and the information submitted is supported by the supporting documentation provided. An agreement in principle can be obtained at the very early stages of buying a home, usually before you have found or had an offer accepted on a property.
Stage two — Full Assessment of your mortgage eligibility once a full mortgage application has been submitted. (Key To Mortgages) This would be when you have found a property, had your offer accepted and are ready to progress from an agreement in principle to a full mortgage application. At this stage your supporting documentation is submitted and cross referenced with your application / agreement in principle. Once an underwriter has fully assessed your application, credit reference information and supporting documentation, they will approve or decline your application.
Stage three — Valuation of the property is instructed. Assuming the lender approves you for the borrowing requested, a basic valuation of the property is instructed by the lender, for the lender. This is purely to assess the suitability of the property for mortgage purposes. This is not a survey of the property and can not be relied on to provide peace of mind that the property is without fault, requires no work or is a good buy! Once the valuation has been carried out, (Key To Mortgages) the valuation report is sent back to the lender for assessment. Assuming all is well, the lender confirms that the property is suitable for the mortgage applied and your mortgage is fully approved. At this point your formal offer is produced and sent you.
Please note that some lender’s may instruct the valuation of the property immediately upon receipt of your full application. This does not mean that your mortgage has been approved subject to this. However, a good adviser will advise you of what’s is happening at every stage of the process, so you should never be in the dark!
So How long does it take? As stated, it can take as little as 24 hours. However, usually around two weeks from submission to approval. This does of course assume that all the requested documentation is available at application and the surveyor is able to access the property without delay, to complete the valuation.
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