Mortgage approval process and mortgage offer timeline

The online mortgage approval process. If it meets appraisal then you will probably get the final approval for the mortgage. After that, you will follow up with document submission so they can conduct a more formal review of your finances. This will help them pre-qualify you for a certain size and type of mortgage loan. This is usually how it works when you seek mortgage approval online through a lender site. Sellers will take you seriously when you are pre-approved, because it means you're pretty likely to get the loan when the time comes. The Mortgage Approval Process If you plan to buy a home soon and need a loan to cover the cost, you probably have questions concerning the approval process that awaits you. The good news is that the process is usually straightforward and easy to understand.

Timeline for mortgage approval process and release of funds.

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Steps in the mortgage approval process - Mortgage offer timeline

Before looking for a property you need to decide on your budget. How much you can afford will often depend on how much you can borrow. The first step is therefore to get an agreement in principle from a mortgage provider. This will also put you in a much stronger position when negotiating the purchase of your new property.

When you have found a property and had your offer accepted then you need to complete the mortgage application form for approval as the first step in the mortgage approval process.

The institution (bank or building society) will then write for references, possibly including proof of income, from your employers.

Additional information may be requested including bank statements.

The mortgage approval process up to this stage can take 2- 3 weeks

The bank or building society will then instruct a surveyor to carry out a valuation survey for mortgage purposes to assess the loan to value ratio. This will determine how much they will be prepared to lend on the actual property you are interested in purchasing. The time this takes varies but again allow anything up to 2 - 3 weeks.

The report from the valuation survey is returned to the lender.

Subject to satisfactory references and survey valuation, a formal offer of mortgage will be drawn up and sent to you or your solicitor.

After discussing with your solicitor, if you are happy with your mortgage offer sign and return it to the lender.

Overall expect the mortgage approval process to take anything up to 4 - 6 weeks in total. You may be luckier but don't bank on it.