If you are taking out your first mortgage, a broker can help you find the best deal. But what questions should you ask them and what documents will you need? Darren Polson helps out…
The Question
I’m taking out my first mortgage and have an appointment with a mortgage broker to discuss my options. Could you please give me some tips for how to prepare for the meeting.
Do I need to take anything or get any financial documents ready? What questions should I ask? Thanks for your help.
Darren’s Answer
It’s great to hear you have an appointment with a mortgage broker in place. This is the first step in your journey and your broker will be able to guide you through the process from start to finish.
Although there are many options for obtaining a mortgage, speaking to a broker who can research the full market is always beneficial to ensure you are getting the best possible deal.
As all lenders have different criteria and requirements, a broker will be help ensure you’re applying for a lender who will accept you.
Brokers have different ways of working, but having the right information to hand ahead of that first meeting will definitely help them secure the best mortgage for your circumstances.
What documents will a mortgage broker ask for?
The documents required for your mortgage application do differ depending on the lender and the broker’s requirements.
Generally, the below documents are required:
-
- A form of ID such as a passport or driving licence. This must be in date.
- Address verification, eg a utility bill, dated within the last 3 months
- Last three months’ payslips or tax year overviews if self employed
- Last three months’ bank statements
- Proof of deposit, for example a savings account statement
Other documents may be required depending on your residency status, deposit source or employment status. Your broker will let you know if this is the case when you meet.
The goal for this meeting is to obtain a Decision in Principle (DIP). This is sometimes known as a mortgage promise or an Agreement in Principle (AIP). This is where a lender will check your affordability and credit score to give you an indication of what you can borrow.
This is not a full application and will generally be a soft credit check at this stage.
What questions should you ask your broker?
In terms of what you should ask the broker, make sure you:
Find out how much you can borrow – this will allow you to confidently view properties and know your budget
Understand any fees and costs, so you can budget effectively for the full process such as broker fees, lender fees and legal fees
Ask about different interest rate options – term, rate, monthly repayments etc
Clarity on how the process works – ensure you are clear on the steps and timelines involved in the application process
Find out about additional support – does your broker work with a conveyancer who can help with the legal side for the purchase? Often this can be more cost effective for you
Explore protection options – understand the costs and products involved in protecting your home
Remember, your broker is there to help, and there is no such thing as a silly question. If you are unsure of the process or next steps, please ask!
I wish you all the best in your homebuying journey.
Meet our expert…
Darren Polson is head of mortgage operations at Aberdein Considine. He has been writing a regular column for What Mortgage for over two years and is now here to answer YOUR questions.
If you have a question for Darren please email kate.saines@emap.com or leave a message in the comments below.
