7 Steps to a Pain-free Secured Loan or Mortgage Application Process

Applying for a mortgage or a secured loan (a loan which uses your home as security) can be one of the most important decisions you can make. Because your home will be at risk if you fail to keep up the payments, it is important to consider your options carefully and to make an informed decision.

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Once you have decided to apply for a mortgage or loan, it is important to ensure that the applications process is not more stressful than it has to be. Many of these pointers might seem obvious but following them will ensure that the application process goes as smooth as possible.

1. Personal Information - Fill in the application completely and correctly. Ensure that your answers are as accurate as possible. Even if you already have several accounts at the bank where you are applying for a mortgage or secured loan, it is important to complete the personal information completely since your application will be processed by someone not familiar with your history at the bank. Pay particular attention to providing accurate phone numbers with STD codes, post codes and account numbers. While tedious this will allow the bank to process your application quickly and accurately.
   
   
2. Signing and Dating - Ensure that you sign and date all the forms where indicated. If you miss even one place which requires a signature, your application will be delayed while the lender sends the forms back to you for signature. If it is a joint application, ensure that both you and your partner sign everywhere requested. Lenders might ask you to sign an insurance declaration and a declaration of affordability if it is a non-status or self-certified mortgage or loan.
   
   
3. Valuation details - Ensure that you fully complete the estate agent's or valuer's details on the application. You should provide enough details (including phone number with STD and postcode) for the specific agent dealing with your request to be easily reached.
   
   
4. Documentation - Provide all the records requested by the lender completely with your application. This will ensure that the lender has all the information needed to evaluate your loan request as soon as they receive your application. Most lenders require three current pay slips, a P60 and your current mortgage statements (either 12 or 24 months depending on the lender). Since there is always a chance that the lender will lose these documents, make photocopies of everything before you send it off.
   
   
5. Proof of Identity - Since September 11th, tighter money laundering restrictions have increased the requirements on banks and building societies to authenticate your identity before lending you money. To accomplish this, you might be asked to provide a passport, driving license, marriage certificate or a birth certificate. If so, send them by recorded delivery so you can track them if they should become lost and keep photocopies of all your documents in a safe place.
   
   
6. Mail your Application - carefully address your complete application and all supporting materials directly to the person, team or department dealing with your request. The quicker the application arrives the faster it can be processed and you can have your loan.
   
   
7. Pay the Application Fee - Ensure that you pay the application fee and don't forget about to ensure that there are sufficient funds in your bank to cover the cheque. Remember you are asking a lender to loan you money on the promise that you can repay it. Make a good first impression by ensuring that you cheque clears the bank with no problem.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. All loans are subject to status. Written quotations are available directly from the lender on request to the lender. A broker fee might be due on transactions completed through this site.