How to apply for contractor mortgages
If you want to take a contractor mortgage, you need to sign a purchase contract. Your capability to obtain a mortgage depends on the information contained in your credit report. So, it is better to get an idea about your credit report, before you apply for a mortgage. This helps you to correct errors.
Articulate to a qualified mortgage advisor:
Choosing the right mortgage can prove a rather tricky exercise without professional guidance. You can find and compare the lowest rates for a mortgage, with the help of the internet. Other than these, you can have to consider other qualities/features.
You must consider set up fees, early repayment charges, and the reversion rate offer; will you fit the lender’s criteria? You need to check all these questions when choosing the right mortgage.
Getting mortgage advice from a qualified mortgage advisor is more important than ever. Mortgage lenders will discuss specific criteria to about these mortgages.
Obtain an agreement in principle (AIP)
You have to get a decision in principle (DIP) as an agreement to search pre-approve the mortgage to find a property, property valuation and payslips etc. AIP does not cost anything and does not obligate you to take out a mortgage or to arrange a mortgage.
Select your solicitor or licensed conveyance
Speak to your solicitor and call them whenever you need. Remember, cost can also vary dramatically from one solicitor to another. One most important thing is that you have to choose a firm that has at least two partners as some lenders will not deal with solicitor.
Make sure that you have chosen contractor mortgages firm that is suitable for your budget and situation.
You need to supply any paperwork if your lender requests
You need to supply any paperwork if your lender requests. That is you need to showcase supporting documentation that the lender needs.
Your mortgage lender will maintain a basic mortgage valuation. This should be carried out by one of their suitably qualified surveyors. Moreover, a basic mortgage valuation is primarily for the lender’s benefit. But the cost of this is usually paid by you.
It is one of the suitable securities for lending purposes. Confirm whether the property is worth what you are proposing to pay for it and if it is suitable security for lending purposes.
Receive your mortgage offer:
After assessing your mortgage application, the survey report and all the supporting documentation, lenders will issue you with a mortgage offer. Your mortgage offer should be checked to make sure the terms and conditions that you are expecting when you applied for the mortgage.
Exchange and completion:
Once your mortgage offer and the solicitor have completed all the legal work, you will be in a position to exchange contracts. It means when you are legally bound to purchase the property. On exchange of contracts, you are responsible for the property. Your mortgage starts from now!