What happens after mortgage approval in principle?

JigglyMcJabs

Hi, I'm a first time buyer so I'm new to all this! I got a call from my mortgage broker on Friday afternoon to say we have approval with pretty standard conditions attached, he emailed me a pdf of the approval in principle and we've already submitted most of the documentation we need. It was a 2 minute call with the broker as I was busy in work so he didn't get a chance to explain next steps to me.

We've a house identified with booking deposit paid. I'm obviously excited and just interested to know before I catch up with the broker again, what happens next and what's the process from here on?

Thanks

howiya

I don't know how far along you are so some of this stuff you may have already covered.

Organise mortgage protection cover. Would imagine your broker will be covering this off. Also look into home insurance.

Engage solicitor.

Have the property valued by valuation company the bank use. I suspect this is one of the conditions in your approval in principle letter.

Organise a surveyor.

Supply any other documentation the bank have requested. It'll do no harm to resubmit the documents you have already submitted that they've asked for again. Just to have everything in the one place.

Apologies if I've left anything out. Best of luck with it.

JigglyMcJabs

howiya wrote: »

I don't know how far along you are so some of this stuff you may have already covered.

Organise mortgage protection cover. Would imagine your broker will be covering this off. Also look into home insurance.

Engage solicitor.

Have the property valued by valuation company the bank use. I suspect this is one of the conditions in your approval in principle letter.

Organise a surveyor.

Supply any other documentation the bank have requested. It'll do no harm to resubmit the documents you have already submitted that they've asked for again. Just to have everything in the one place.

Apologies if I've left anything out. Best of luck with it.

Thanks a lot!

Trish56

The next step is to go to 'Loan Offer' so in order to do this you need to arrange the Valuation on the property - details on how to do this will be on your 'Approval in Principle' or your broker will advise. Your Loan Approval in principle will also include conditions and you will note that some will say 'prior to loan offer' and others will say 'prior to drawdown. So priority would be for the conditions prior to Loan Offer. Once issued you, your Broker and Solicitor will receive a copy.

Once the Loan Offer issues then the conditions will be for 'Drawdown' and will include Mortgage Protection, Deed of Assignment, Direct Debit, Home Insurance and more than likely due to Covid you may have to submit up to date payslips and current account statements. Your Broker will submit these to the lender. You will also need to make an appointment to meet your Solicitor to sign Contracts and Loan Acceptance. Solicitor will have agreed a closing date with the Vendor's Solicitor and all documents need to be in place approx. 1 week prior to drawdown.
Best of luck