Mortgage Process Help???

[tinkerbellchelle]

We are in the process of buying my DP's parents house which they rent out currently. The mortgage is only in DP's name even though the deeds are going to be in both our names. Only he went to see the mortgage advisor and being a bloke he didnt really tell me much. All he said is its ok and we've paid for the valuation to go ahead and we're just waiting for the cheque to clear. So does this mean that we've been offered the mortgage and they just need to check the value or do we get the offer after? He wasn't sure because we dont actually have to go through an estate agent its a private sale as such so the mortgage advisor said he doesnt need to give us an offer which we can take to the estate agents?

DP says its all going ahead but wondered if anyone actually knows the process and where we are in it?
Sorry if this doesnt make much sense :)

Sure someone will be along who knows more than me, but it sounds like the survey will be done soon - this is to confirm to the mortgage company that the property is worth what they're lending. It seems to me to take about two weeks to get the survey done.

The mortgage company also do a credit check and maybe references (not sure)...

So basically you haven't been offered the mortgage yet, they have to go through this process before they make you the offer.

It is possible though for the mortgage company to make an offer in principle - ie they do the credit check on you and look at your income and let you know the amount they are prepared to lend you. It sounds like this has been done because your DP has paid for the survey. No point in doing this unless the company will actually lend you the amount you need! So it sounds fine, will just be a case of waiting now.

once the valuation has been done..to check that the property is worth what youre paying for it,then the ball will start rolling as such ,they will check out your partners credit history amongst other things and once everything comes back o.k they will offer you the mortgage in principle in writing which will usually have a time limit of about 6 months for that particular rate before you have to reapply but its plenty of time , they will want to see your partners bank statements, proof of id and all that inc passport etc before mortgage is offered , its just waiting time afraid now but if your advisor is good like ours they should explain everything to you!!

Thank you :) Thats what I thought because we have actually paid for it then its probabably been offered in principle :)
So hopefully on monday we'll hear about someone coming to do the valuation :)

We're going through an independant mortgage advisor and DP was with him for about 2 and a half hours so Im guessing in that time it was a proper application etc with credit checks done? thank you for your reply :) Im useless at things like :)

bambi > they already have all the id etc bank statements bills etc cos they did this at the application? x

i'm doing the same at the mo tink. Once the valuation is done it usually takes about a week to get the offer.. if they're happy with everything. The only thing you have to be careful with is that you are not paying too little for the house as this can cause probs with inheritance tax i think.. friends of ours had to get 3 independent valuations done to buy their in laws house. just being nosey, why aren't you on the mortgage??

cos I dont work and am not earning anything they didnt see the point? They said cos Im on the deeds it doesnt matter about the mortgage?
Its all so confusing! We are paying a lower price but our deposit is the rest of the value or something? The solicitor is brilliant he tries to explain everything but I get so lost. I know he is already doing land searches etc so when the mortgage company get in touch with him, cos they have his details then it will all be ready. The mortgage advisor and the solicitor said it could all be doen within about 2 weeks which would be great!!! :) doubt it will be tho!

how are you allie? we're good, LO is getting much better :)

Most lenders insist that the mortgage and deeds are in the same names, so if you are going to be on the deeds then they might insist that you are on the mortgage too. Worth finding out sooner rather than later as they will also need ID/proof of address etc etc for you which could hold things up if it only came to light at the last minute.

ahh... solicitor didnt say anything and he knew mortgage was only in ben's name? we'll email and ask 2moro :)
thank you for bringing that up

If your dh went through a mortgage advisor they should do all that sort of stuff for you as they know the rules well (or should do - it's what you pay them for!) Usually the process is that the mortgage advisor goes through all the affordability stuff, they with your dh decide which mortgage to go for, fill in the form and do the credit check (most of this can be done on line and is fairly immediate). This is the 2hr session. Then you get the mortgage offer, and the only issue is the valuation, so provided the valuation is worth the amount you are paying or more you shouldn't have any problems. The only issue will be if the survey picks up problems, and then you have to get more surveys done before you get the money (damp, gas etc). Hope it all goes smoothly for you!

Tinkerbellechelle - unless a solicitor is also arranging the mortgage (which in your case he's not) they tend to keep out of the mortgage part of it altogether and just do the legal work. It's the mortgage advisor who will need to check with the bank that they will accept the names on the mortgage and titles to differ.

Nooka - what you say about the mortgage advisor knowing the rules is true in theory, but having worked for a mortgage lender and dealt with many many mortgage brokers, I'm afraid there are many of them who are hopeless (and rude and arrogant but of course there are many brilliant ones too). I really hope that yours is up to speed Tinkerbellechelle.

A mortgage offer cannot be issued until the property has been surveyed and all the other criteria met. At least you don't have to worry about a chain or being sued for not completing on time (assuming your PILs are reasonable people of course!!) so that will take the pressure off at least.

HTH

MB

thank you :) that does help :)

Yeah the PIL's solicitor is a family friend and basically everyone is just waiting for the green light :) So hopefully shouldnt take too long... what I will do is get DP to email mortgage advisor in the morning to check about what deeds on the house etc and see if we need to change what we are doing there. We're just waiting for the valuation to go ahead the cheque was given tuesday and I guess from then its all steam ahead :) I hope :) the mortgage company have all DP's bank statements, solicitor details etc and also down to payment date and bank account etc so fingers crossed all will swim along nicely ( in an ideal world ) ;) thanks for all your help everyone x