One of the burning questions I get asked all the time is, “How long does it take to get a mortgage?” Well, buckle up because I’m about to take you on a journey through the twists and turns of the mortgage approval process.
Let’s dive right in, shall we?
First things first, the crucial stage of getting your mortgage approved can happen in as little as an hour. Yes, you heard that right – an hour! But hold your horses, there’s more to it than meets the eye. You see, lenders operate on a three-stage approval process, and each stage has its own quirks and timelines.
Stage one: Agreement in Principle (AIP), also known as a Decision in Principle (DIP). Picture this as the initial nod of approval from the lender based solely on the information you’ve provided and a Credit Reference Agency search. No documents, no paperwork – just the bare bones. It’s like dipping your toe into the mortgage pool to see if the water’s fine. Getting an AIP is key early on in your home-buying journey, even before you start eyeing up properties.
Stage two: Full Assessment. Now, this is where the real fun begins. Once you’ve found your dream home and had your offer accepted, it’s time to roll up your sleeves and get down to business. We’ll submit all the necessary documents, from payslips to bank statements or even company accounts, and the lender will scrutinize every last detail. After an underwriter gives your application the once-over, they’ll either give you the green light or the dreaded thumbs-down.
Stage three: Valuation of the property. Cue the dramatic music because this is the moment of truth. The lender wants to make sure the property you’re eyeing up is worth its weight in gold (or at least in mortgage terms). They’ll order a valuation to assess its suitability for lending purposes. This isn’t a full-blown survey – just a quick check to dot the i’s and cross the t’s.
Now, here’s the kicker – the timeline. How long does all this take? Well, like most things in life, it depends. If the stars align and the lender doesn’t need a mountain of paperwork or a physical inspection of the property, you could be looking at as little as an hour. But let’s keep it real – it usually takes anywhere from 1 to 4 weeks, from mortgage submission to approval.
And hey, remember, not every mortgage application requires a property inspection. If you’re curious about the nitty-gritty details, check out my blog on Key To Mortgages, where I break down the difference between a valuation and a survey.
So, there you have it, folks – the not-so-secret recipe for getting your mortgage approved in record time. If you’re feeling overwhelmed or just need some expert advice, you know where to find me – Peter at Key To Mortgages, your friendly neighbourhood Bournemouth Mortgage Broker.
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Until next time, happy house hunting!
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