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Your Mortgage in 3 Steps

Your mortgage in 3 steps

Step 1 – Approval in Principle (AIP)

Obtain your mortgage approval by formally applying for your mortgage.  When your mortgage application has been assessed by the banks, you will receive your mortgage approval in principle (AIP). Your mortgage approval is an A4 page on letter headed paper from the bank confirming what mortgage amount the bank will offer you. This is the document that you need in order place an offer on a property. This is referred to as an Approval in Principle (AIP), Agreement in Principle or an estate agent may ask you if you are Mortgage Approved, it all means the same thing – have you got the A4 page from the bank?

When you receive your AIP you can start to house hunt. You won’t be taken seriously by the estate agents without your AIP.


Step 2 – Loan Offer / Mortgage Contracts

When you go “sale agreed” or place a booking deposit on a property, you will need to progress to formal mortgage contracts. Your formal mortgage contract is called your Loan Offer. Your loan offer will include your new home address, the purchase price, the mortgage amount, the interest rate, and any conditions imposed by the bank.

This is the key point to refine your mortgage needs in terms of which interest rate, which mortgage package and which bank that you wish to proceed with. We will review your original mortgage AIP in order to see if this is still the most suitable mortgage AIP for you based on any changes in the mortgage market and your requirements.

When instructing your loan offer, you will need to nominate a Solicitor, instruct a valuation, instruct a structural survey, and start the life cover process.

When you receive your loan offer/loan offer, your Solicitor will arrange a time when you need to pay your deposit.


Step 3 – Mortgage Funds are released by the Bank & you Collect your Keys

When your new home is built or your Solicitor has advised your home is ready to move into, the bank will release your mortgage funds. A few days after your mortgage funds have issued, you will then be able to move into your new home.

The bank will write out to you and will advise you when your first mortgage payment will be due. Although, your first mortgage payment is generally due the following month.