IF YOU’VE EVER tried to pull off a big dinner, you’ll know it’s crucial to get the timings right to get everything on the table at the same time.

It can be the same with getting all elements lined up in the home-buying process so that things run as smoothly – and quickly as possible.

This is the kind of scenario you want to avoid:

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So let’s work backwards, shall we? These are the things you should be thinking about in order for your mortgage application and the order in which you should be thinking about them:

(At least) a year to six months out from starting to homehunt:

• Be a regular saver. Mortgage-lenders frequently require proof that you have the resources to save money regularly (and will therefore be likely to be consistent and capable of making monthly mortgage repayments). At least six months – but preferably a year or longer – of making monthly payments into a savings account can help demonstrate that.
• Get that credit card in order. Any outstanding debts may hit the amount of mortgage total that you will be able to borrow so it’s a good idea to get these in line – pay off that credit card balance, overdraft or pay down other loans that are hanging over you.
• Not a direct debit user? You should be. As with the regular savings, it’s a good idea to have direct debits set up to pay bills, especially rents or even a monthly contribution to relatives you might be living with. It shows that you are able to meet those monthly repayments.

Six months out: 

• Get talking to that mortgage advisor. Start shopping around now, and meet with mortgage advisors in the financial institution of your choice to get advice on how much you are eligible to borrow.
• Make sure you have a GP. Get registered with one and provide them with as much of your previous medical history as you can. You will see why that is necessary when you get to sale agreed (below).

As soon as you are homehunting:

• The paper trail begins. You will by now have figured out where you are going to seek your mortgage. Get your documentation together so that you may get your approval in principle – but note that this is not the final step in sealing the mortgage deal.
• This initial documentation will include such items as: certificate that your tax affairs are up to date and paid (if you are self-employed), or three to six months of most recent pay slips; statements from savings and current accounts; salary certificate stamped and signed by your company (if you are an employee); photo ID; proof of current address. Get these together as soon as you can to save running back and forth for them later.
• Solicitor yourself up. If you haven’t already, ask for recommendations from people you trust and establish contact with a solicitor. If you have a bid accepted, you are going to need them to step in fairly sharpish.

When you’ve found a place you want to bid on – and bid is accepted:

• Structural survey – get one done before bidding, or else make your bid dependent on no major issues being identified once a survey is carried out. It will have to be carried out quickly if you do have a bid accepted – the mortgage lender will want to see a copy of it in any case. And it will help you figure out if renovations are necessary – and you can start totting up if you can afford them.
• Deeds, indeed. If the bid is accepted, this is where the solicitor has to earn his or her pay – they must check out the property ownership, checking that there is no issue with the title deeds of the property. They will also be a medium for your mortgage cheque – it will go to the seller from the financial institution through your solicitor, not through you.
• Pay a deposit. The estate agent/auctioneer will normally ask straight away for a deposit (of, say, 2% sale price) to hold as a sign of your commitment to buy. They hold this as surety but if for any reason the sale falls through – even if you just decide not to proceed with it – you get the deposit back.
• Joint current account? If you are buying with another person(s) and plan to keep your own personal accounts separate, it’s a handy thing to set up a joint account from which your deposit to the financial institution, mortgage payments etc will be paid out. Believe us – this will make all the form-filling a little easier when you get into the final stages.

Sale agreed – things to do:

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• Have a valuation done. This is different from the structural report. It’s a valuation of the property you are buying which your mortgage provider will want to see (and you generally have to arrange a valuation expert from a list that the lender provides). Get this done straight away.
• Another thing to get on is sorting out life assurance – this will be needed for you (and any other co-buyers on the property) to make sure any mortgage will be paid off should you, or a co-buyer, die before the end of the mortgage term. It is vital to get the wheels in motion because the insurer will need you to fill out a questionnaire about your budget and lifestyle. They will also be getting in contact with your GP (remember our advice at the ‘six months out’ mark?) to check your claims about past illnesses. This can all take a few weeks.
• Serious illness income protection cover. Enquire about this at the same time as life assurance as some companies do a good deal in combining the both. If you get a serious illness and are unable to cover mortgage repayments, it can be invaluable.

Exchanging contracts with the seller (vendor):

• Home, sweet home insurance. This is when everything comes together. When this is imminent, don’t forget to have home insurance in place. It can be arranged within a matter of a day or a few days, but you will need it in order for your mortgage lender to release the cheque to your solicitor to pass onto the vendors.

Getting the keys:

• Cheque this out. The solicitor will have gotten the financial institution to hand over the mortgage loan cheque once contracts are signed between you and the vendor. Now you will have to…
• Pay the stamp duty, legal fees and land registry fees (for transferring the deeds to you).

Then, you have full permission to do this:

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