10 Basic Tips to Obtain a Mortgage and Buy Your New Home in Colchester
In a minimum of up to two weeks, preapproval can be obtained according to the type of bank, but the total process of finalising a mortgage can take almost a month. The process, according to the real estate experts shouldn’t take longer than 40 days.
When deciding to apply for a mortgage from a bank, mortgage experts advise considering several aspects, such as:
- Enter the mortgage simulator of your chosen bank - better if you are a client - to establish the amount required, the value of the fee to pay for the credit, the total income required, and the cash value. Make sure your income will cover all associated costs.
- The necessary requirements to access the mortgage must be met; for example, minimum or maximum age, proof of income, employment, credit card statements and any other supporting financial documentation. In the case of self-employed applicants, it’s best to consult each bank regarding their requirements.
- Take into account that many banks only offer up to 75% of the value of the property to be purchased, therefore it will be necessary to have 25% as a deposit.
- It is advisable to consider the mortgage administration fees or arrangement fees, as well as any other associated fees such as for legal work, property surveys, etc. It might be best to look for a local mortgage advisor Colchester offers if you’re planning to buy in the area.
- Most real estate experts advise getting your mortgage application preapproved in more than one source, before searching for the home of your dreams. This makes sure you can search with confidence, and that when you find the right property – you can act immediately.
- It is advisable to estimate the time it will take to obtain the preapproval of the mortgage. Typically, applications are approved within up to two weeks. But in some cases, the process can take almost a month.
- When looking for a property to buy, do not make any assumptions. Find out from the owner if the property has been mortgaged previously, if there are any land disputes or other issues which might cause a problem with securing a mortgage on the property.
- After you’ve found the property you would like to purchase, gather all the documentation required by the bank, and present it. This is best done with the help of a solicitor experienced in property purchase.
- Most banks require a survey report, either conducted by an independent property surveyor, or their own in-house surveyor. Be clear about which is required and the cost of any property surveys to be carried out.
- Once the mortgage has been arranged, and the property deeds are ready for signing, take your time and double check everything. Make sure all financial and legal details are as they should be before finally signing to purchase your new home.