The Mortgage Process
When meeting a prospective client we take our time to detail comprehensively, the various stages of the mortgage process.
This is important as it gives the borrower a structure, and a time scale to follow, making the whole process work more efficiently.
Step 1: Establish how much you can borrow.
Most institutions have different lending criteria so different lenders will vary in the maximum loan amount they are prepared to lend you, To establish how much you can borrow you need to talk to one of our dedicated team of mortgage advisors
Step 2: Obtain ‘Approval in Principal’ (AIP)
‘Approval in Principal’ is an approval for the finance based on your salary details. It states that a lender in principal is willing to lend you the finance, subject to certain conditions and it is not a legally binding contract. It is important to note that you will not receive a legally binding contract until all the conditions of the AIP are met. Our mortgage advisors will advise you of all the extra costs associated with a property purchase or refinancing so that you will have an accurate idea of how much everything will cost.
When refinancing skip steps 3 & 4
Step 3: Search for a property
Now that you have an ‘AIP’ and you know the maximum the lenders are willing to lend you and the conditions attached to the loan, you can now start looking for a suitable property in your price range.
Step 4: Pay deposit
When you have identified a property you can feel free to place down a refundable booking deposit, and immediately get in touch with your advisor at Hennelly Finance to progress to the next stage.
Do not place down a non-refundable deposit, because at this stage, you do not have a binding contract from the lending institution. Once you have identified a property and have paid your booking deposit, you will then have approximately 3 weeks until contracts have to be signed and the remainder of your deposit will have to be paid. Within the 3 week period before signing contacts, it is imperative you obtain your ‘Full Loan Approval’ as your solicitor will not allow you to sign contracts without it. This is because you stand to lose your deposit if you cannot finance the rest of the purchase.
Step 5: Valuation
An independent valuation will need to be completed for the lending institution so they can establish that there is sufficient equity on the property to cover the mortgage amount. Your Hennelly Finance advisor will organise this for you and send it into the lender you and your advisor have agreed upon.
Step 6: Full Loan Approval
Your Hennelly Finance advisor will ensure that you have everything in place before contracts are due to be signed. It is very important that you do not slow down the process at this stage, so you will need to get any outstanding documentation the lenders require, into Hennelly Finance advisor as soon as possible.
Step 7: Completion
Once contracts are signed, Hennelly Finance will organise life assurance and home insurance for you. These are both requirements of the lenders, (except for investment properties). They have to be in place before the lender will release the funds to your solicitor. Your Hennelly Finance advisor will submit these to the lender and your cheque will be ready for issue.
Step 8: Move into your new home / receive your loan cheque
Your solicitor upon receiving the funds from your chosen lender will then complete the purchase on your behalf, and you can move into your new home. Or in the situation of a refinance your solicitor will clear the outstanding balance of your original mortgage and/or any other loans you have agreed to clear, and will forward the balance, if any, on to you.
