The Mortgage Application Process Demystified in 6 Simple Steps

Date Published
20 April 2021

Buying your first home is likely to be one of the most important choices you will ever make.

Daunted with the thought of purchasing your first home? For first-time buyers, the process of obtaining a mortgage can be a little confusing and overwhelming. At wearethemarket we have got you covered, with six simple steps to the mortgage application process.


When buying your first home, the first thing to establish is what your price range is. Generally, most lenders will only accept applications from buyers who have at least a 10% deposit, so the bigger the deposit you are able to save, the better!

A mortgage is a loan from a bank or lender which is taken out to be able to buy a property, in addition to your deposit. This loan is secured against the value of your home and is paid back in monthly instalments, plus an agreed interest rate.

There are many different types of mortgages available, so it is worthwhile to speak a good mortgage broker who can provide advice on the right product for you based on your circumstances.

They will be able to compare hundreds of mortgage offers and determine the best one for you. By enlisting the assistance of a broker, you will find the lenders who are most likely to provide you with the funds you need, avoiding rejection.

Alternatively, you can shop online and find the best mortgage deals on the market or speak to lenders directly; but it pays to shop around especially with such a big purchase.



Obtaining a Mortgage in Principle (MIP) is one of the first things a mortgage broker will do for you. This is a guide that outlines how much a specific lender is willing to lend you based on your current financial situation. This document does not guarantee that you will be able to borrow the funds you need, but it will help you get started and allow you to begin your house search with a price range in mind.

Some Estate Agents may require you to have a MIP to ensure that you are a credible buyer, so it is useful to have one when you begin your property search. Generally, MIP’s are valid for 6 months so if your property search lasts longer than this, you may have to reapply. This can also be referred to as a Decision in Principle (DIP) or Agreement in Principle (AIP).



Now that you know your budget, you can start searching for your dream home. On wearethemarket, you will get first-look access to all our agents’ properties as they are released 48 hours earlier than on other portals. There is also a wealth of knowledge of the local areas which means you are well equipped to be able to find your perfect home in your ideal location. You can set up search alerts based on your criteria, and book viewings with agents directly from the website. Once you have found a home you would like to buy, it is time to put an offer in with the Estate Agent it is marketed with.



Once your offer has been accepted, it is time to begin your formal mortgage application process. If you are using a mortgage broker, they will manage this for you. The process usually involves a more thorough examination of your finances than at the MIP stage, including a credit check. They will also instruct an independent surveyor to carry out a valuation on the property you are purchasing to ensure that it is worth the sum they are lending you. The reason for this is that if you fail to pay your mortgage, the lender will be in possession of this asset and so it is to protect the lender from being in a detrimental position if it is misvalued and they need to sell it.



Once the mortgage application and valuation processes are complete, your lender will contact you to inform you of their final mortgage offer. This loan, when combined with your deposit, should be sufficient to purchase your desired home.

If you are happy with the offer, then you can proceed with the purchase by instructing a solicitor to act on your behalf to begin the conveyancing process. This is the legal process of transferring home ownership from the seller to you, the buyer.

If the lender makes you an offer less than what you require, you may need to renegotiate with the seller to lower the property price to be able to proceed with the purchase. If the seller refuses to lower their price, then unfortunately you will have take a step back and look for another home.

Please Note: If you decide not to continue with the sale, the lenders’ original offer may be reassessed. If you wish to buy a different home, the lender is under no obligation to honour their original deal.




Once your mortgage is in place and the conveyancing process is complete, it is time to exchange contracts with the seller! This is the legal process of transferring ownership of the property; your solicitor will assist you through this process.

Save the date: You will also be given a completion day, indicating when you can grab your keys and begin to move in!