Now that the decision has been made on the house we want and the reservation fee has been paid, it is time to start working on the make or break things....specifically the mortgage.
The house we have chosen is above the original budget we had set ourselves, but still not a problem on both our salaries. We decided it is best to buy something that won't leave us with regret in a couple of years time ("I wish we got the detached property...." etc). The only problem with this is that the mortgage would be entirely on my name due to Miss G having her name on another mortgage with a previous partner. This might present a challenge!
We went with the mortgage advisor that was suggested by the Bloor salesman. We have been very impressed with him so far. In fact, he came round to our place at 10pm one night just to go over some documentation with us due to the fact that we both work til late and only get home around 7 or 8 in the evening during the week. After filling in all the forms and providing all the proof of identity to him, he started looking for the best deal for me.
A big tip here for prospective home buyers: Be HONEST with your mortgage advisor. It will not be in your favour with the mortgage companies if something is found out (and it will be found out) that you hadn't disclosed.
I got a call on the 6th of March after work from the mortgage advisor. He explained that he had gone through the numbers and the various options and our preference of Santander was most likely not going to be a successful application. He suggested either Natwest or Nationwide. I went with Nationwide. About 20 minutes after putting down the phone with him, he sent me an email saying that we have been provided a Decision In Principle (DIP). Happy Days!
I did some reading about the different processes that various mortgage companies go through. The DIP has more substance with some companies versus others. Nationwide is one of the mortgage companies that a DIP is a pretty good sign that a full mortgage offer will be forthcoming (they do a full credit check, vs. a soft check. Other companies do a full check only when preparing a decision on the full offer). Even with this knowledge I was still nervous as to the full offer. I knew that the mortgage amount I was asking for was near the limit of what I could get on my salary and with my circumstances. It isn't an issue when taking into account both mine and Miss G's situations.
The next step before getting a full mortgage offer is the valuation of the property. Fingers crossed that all goes smoothly and I get the full offer! I hate waiting!
The house we have chosen is above the original budget we had set ourselves, but still not a problem on both our salaries. We decided it is best to buy something that won't leave us with regret in a couple of years time ("I wish we got the detached property...." etc). The only problem with this is that the mortgage would be entirely on my name due to Miss G having her name on another mortgage with a previous partner. This might present a challenge!
We went with the mortgage advisor that was suggested by the Bloor salesman. We have been very impressed with him so far. In fact, he came round to our place at 10pm one night just to go over some documentation with us due to the fact that we both work til late and only get home around 7 or 8 in the evening during the week. After filling in all the forms and providing all the proof of identity to him, he started looking for the best deal for me.
A big tip here for prospective home buyers: Be HONEST with your mortgage advisor. It will not be in your favour with the mortgage companies if something is found out (and it will be found out) that you hadn't disclosed.
I got a call on the 6th of March after work from the mortgage advisor. He explained that he had gone through the numbers and the various options and our preference of Santander was most likely not going to be a successful application. He suggested either Natwest or Nationwide. I went with Nationwide. About 20 minutes after putting down the phone with him, he sent me an email saying that we have been provided a Decision In Principle (DIP). Happy Days!
I did some reading about the different processes that various mortgage companies go through. The DIP has more substance with some companies versus others. Nationwide is one of the mortgage companies that a DIP is a pretty good sign that a full mortgage offer will be forthcoming (they do a full credit check, vs. a soft check. Other companies do a full check only when preparing a decision on the full offer). Even with this knowledge I was still nervous as to the full offer. I knew that the mortgage amount I was asking for was near the limit of what I could get on my salary and with my circumstances. It isn't an issue when taking into account both mine and Miss G's situations.
The next step before getting a full mortgage offer is the valuation of the property. Fingers crossed that all goes smoothly and I get the full offer! I hate waiting!
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