Step One: Ask Us for Help At CMCC Financial Solutions we have over 50 years combined experience in the mortgage market so we can help assess every application prior to being processed by your lender. We’ll help with confirming the level of mortgage available, making sure all necessary documentation has been received, answer any queries in relation to bank transactions, document etc. We treat every application as if it was our own.
Step Two: Establish How Much You Can Borrow Most lenders initial calculation is 3.5 times earnings, when exceptions are available this can be as much as 5 times. We can confirm the amount prior to processing your application. Each lender will treat additional earnings like commission, allowances, overtime, bonus etc differently which can make a significant difference to the amount of mortgage approval you may obtain.
Step Three: Demonstrate Your Ability to Repay Irrespective of 3.5 times or 5 times combined earnings no lender will approve a mortgage application without evidence of repayment capacity, so this is critical. Bank/saving account statements need to show you can afford to make mortgage repayments (using a stressed repayment rate of 5%). Rental payments can go towards this evidence, provided they are shown in statements by way of a standing order or regular transfers.
Step Four: Put Together a Deposit You’ll need to show confirmation of where your balance of funds are coming from i.e. usually 10% for first time buyers and up to 20% for non-first time buyers. This can be shown by balance(s) saved in bank accounts, credit union, help to buy confirmation for first time buyers and/or family gifted funds.
Step Five: Choose a Lender We’ll discuss with you the amount each lender will provide towards buying your home and then finalise your rate, be it fixed or variable, the term of the loan and factor in all cashback options from the market.
Step Six: Understanding Key Documentation We’ll help you understand the difference between a salary certificate for PAYE applicants, form 11’s and notice of assessments for self-employed applicants, along with payslips and clarifying your employment summary. It’s important to be aware there are no referral charges, unpaid direct debits, balance in excess of overdraft limits or any large withdrawals from account(s) in previous 6 months to the application time. Your credit history and credit card payments need to be fully up to date with a clean repayment history.
Step Seven: Understand ALL the Costs of a New Home You’ll need to be aware if a structural survey is required on the property and an independent valuation will be required for your lender together with stamp duty, and your own legal fees.
Step Eight: Get Started! Now you’re ready to apply for written mortgage approval and we’re here to help!
Article supplied by Conor Murray of CMCC Financial Services
