What should I expect at my first mortgage meeting?

If you’re looking for your first home the prospect of your first mortgage meeting with an adviser can be daunting.

Buying your first property is a big decision to make. So, it’s best to understand what you can do to speed up the process.

You could consider doing it yourself via a mortgage comparison website. But over recent years, experts have warned that such sites are not always accurate. They can leave you even more confused!

Choosing a mortgage adviser means the whole process is explained simply to you. Brokers have access to deals you can’t get from those sites or high street lenders — they the hard work for you. 

We’ve outlined why mortgage brokers, such as The Mortgage Dog, are great for giving impartial advice in a previous blog.

Is it a good time for first-time buyers?

First-time buyers might be facing some of the toughest market conditions for some years. But at the same time, a recent report shows a surge in sales of smaller homes by first-time buyers. These figures prove that the property market for those buying their first property remains healthy.

Once you have decided to take the step on to the property ladder, it’s time to do some homework. First of all, make sure you know what you can afford! There’s no point looking for dream homes only to discover lenders won’t give a mortgage to cover the sale price.

Check out our top tips for first-time buyers.

What should I expect at my first mortgage meeting?

Once you have done your homework and decided to apply for a mortgage, it’s time to talk to your adviser. At The Mortgage Dog, we can meet you in person, over Zoom or at the end of the phone. Either way, the first mortgage meeting is essential for understanding your needs and current situation.

Mortgage advisers don’t just need to check out your official documents at your first meeting. One of the main aims of the first meeting is understanding your financial situation. That includes your income, bank balance, savings and deposit!

Documents you’ll need

• Proof of identity and address: You first need to prove who you are. A valid passport or driving licence will prove your identity. Recent utility bills, council tax statements or bank statements will verify your address. Make sure those documents have your correct details on them. Any errors could create delays in your mortgage application.
• Proof of income: If you’re employed, then you’re normally be asked for the last three months’ payslips and your most recent P60. Self-employed people are usually offered specific mortgages. If you are a sole trader, we’ll need to see your SA302 (self assessment) tax calculations from the past two to three years. These simply show lenders whether your income has been stable over the past few years. They can also help predict future earnings.
• Bank statements: Bank statements also offer a snapshot of your financial health. Lenders scrutinise your past three to six months of statements. This shows any concerns they may have, such as big gambling spending. If they view you as a risk, they might offer a much smaller mortgage.
• Credit score: Credit checking agencies such as Experian offer basic, free credit scores. It’s always useful to download the app and sign up as this offers a quick way of showing you’re financially savvy. Should there be any issues – such as wrong information – it gives time for you to sort them out before your first mortgage meeting. Any errors could lead to complications or delays in your mortgage application.
• Proof of deposit: Proving you have a deposit is necessary before lenders will make an offer. If you have your cash stashed in the bank, then remember to bring or send a statement before your first mortgage meeting. This proves you have the money. If a relative or friend is offering the cash, ask for a letter confirming that it’s a gift.

What else do you need?

Most mortgage brokers will take you through a process that includes questions about your current finances. One area includes your budget and how much you spend on living expenses, loans and other monthly commitments.

Be prepared by writing down all the regular payments you make. Also, list any regular spending you have, such as gym memberships and TV subscriptions. Having these won’t prevent you from getting a mortgage, the show lenders about your financial management.

You’ll also be asked about current credit commitments you have, such as car payments, as well as future financial plans.

All these questions paint a picture of your financial health. 

The mortgage meeting

Your mortgage broker will help you collate all the information they need. But having as much information as possible can help reduce delays from lenders. The first meeting isn’t anything to worry about. Your mortgage adviser will get a clear understanding about you and your financial health and needs. 

They outline the process of buying, including surveys and conveyancing and insurance. Some insurance is crucial to getting a mortgage while other insurance is optional. Your adviser is there to advise and help you secure the best possible mortgage deal. 

If you’re looking for your first mortgage, contact our friendly team today to book an appointment.

Your home may be repossessed if you do not keep up repayments on your mortgage.