Navigating mortgage applications is a complex process, especially for first-time home buyers. Applying for a mortgage requires a detailed and thorough examination of your income, financial situation, and credit score; the process can be exhausting. There’s never a guarantee you’ll be accepted either, so it can be a big relief once you receive your mortgage offer.

Your mortgage offer will be sent either to you or to your solicitor. This offer should be read very carefully. It will contain the amount of money the lender is willing to lend, the length of the mortgage term, and the amount of monthly payments required. You should go over this offer with your lawyer in order to make sure everything is in order. Legal fees are a significant part of mortgage closing costs, but the consequences of not examining the offer carefully enough can cause even bigger problems. 

Keep in mind that this offer is presented based on the information you provide to your lender. If any of your circumstances have changed since the application process, it’s important to let the lender know as it may affect the terms of your mortgage offer.

Once you’ve gone over the offer with your lawyer, you’ll be expected to accept the offer by a certain date—your “completion date.” This is a legally binding process and will be performed by your lawyer and the lawyer of the person who is selling you the property. Again, completion is part of mortgage closing costs.

Once the offer is accepted, completed, and you have exchanged contracts, you will be required to pay your deposit. Once the deposit is paid you are legally bound to the property, and should you not go ahead with the purchase, you will lose your deposit.

Finally, once everything is complete, the mortgage funds will be released and sold to the seller of the property. On this date, the property is legally yours!

Be aware that a mortgage offer carries an expiration date. Since your mortgage is probably the biggest loan you will ever take out, it’s especially important to make sure you understand all the terms of the offer. While mortgage closing costs can add up, it’s more than worthwhile, and necessary, to have a good solicitor and to consult a mortgage professional when it comes to accepting a mortgage offer. Contact Northwood Mortgage today to set up an appointment with one of our mortgage experts!