Are you Proceedable?

You’ve been onto all the property search websites, and have found the house of your dreams, but can you actually buy it? 

Are you Proceedable?

You’ve been onto all the property search websites, and have found the house of your dreams, but can you actually buy it? 

Buying a home is a big step, and one of the key elements in making it a smooth process is ensuring that you’re in a strong, proceedable position. Estate agents and sellers are far more likely to accept an offer when they know you're fully prepared, and part of that preparation involves working with a mortgage broker. If you're not ready yet, don’t worry—this guide will help you gather everything you need to get there.

1. Why Being in a Proceedable Position Matters

Being proceedable means you're fully prepared to move forward with a purchase. Without this status, estate agents are less likely to take your offer seriously. A key part of this is having a Mortgage Agreement in Principle (AIP), which gives sellers confidence that you can secure the necessary funds to complete the purchase.

To obtain an AIP, your mortgage broker needs a range of documents and information to assess your financial situation accurately. Here's what you need to provide to get yourself into a strong buying position:

2. Key Documents You Need to Provide

1. Proof of Identity:

   • Passport or Driving Licence: These are needed to confirm your name and identity. Without a valid form of ID, lenders won’t be able to consider your application.

2. Proof of Address:

   • Utility Bill or Full Bank Statement: This document must be dated within the last three months. A clear and up-to-date proof of your address is essential for both your broker and lender.

3. Proof of Income (Employed Applicants):

   • Three Months of Payslips: Your payslips will verify your earnings.

   • Three Months of Full Bank Statements: These should match your income from payslips and show your monthly expenses. Make sure your statements cover everything for a clear picture of your financial health.

4. Proof of Income (Self-Employed Applicants):

   • Two Years’ Full Sets of Accounts: Your accounts should show your business's performance over the last two years.

   • SA302 Forms and Corresponding Tax Year Overviews: This is essential to prove your declared income.

   • Three Months of Full Business Bank Statements: These provide insight into the cash flow of your business, helping lenders understand how your business performs.

5. Proof of Deposit:

   • A crucial aspect of getting an AIP is proving you have the deposit ready. Whether it’s savings, a gift, or other sources, you need to provide documentation that shows where your deposit is coming from and that it's readily accessible.

6. Credit Report:

   • A full credit report is necessary to see your credit history. Lenders will want to assess your reliability in repaying debts. A good credit score will improve your chances of getting favourable mortgage terms.

3. Why You Need These Documents

Your mortgage broker will use all of this information to research mortgage products suited to your financial profile. Without these documents, they won’t be able to accurately assess what you qualify for, and they cannot secure an Agreement in Principle from a lender.

This means your offer won’t be taken seriously by estate agents or sellers, and you could lose out on the home you want. Gathering these documents now puts you in a strong position to make an offer when you find the right property.

4. Next Steps

Once you’ve gathered all the required documentation, your mortgage broker can begin their research to find the best mortgage options for you. This will allow them to provide you with an Agreement in Principle, meaning you’ll be in a proceedable position and ready to make a solid offer on a property.

If you’re still working on gathering these documents, don’t worry—just keep in mind that the sooner you have everything ready, the sooner you can move forward with your home-buying journey!

By following this guide and working closely with your mortgage broker, you can ensure that when the right property comes along, you’re fully prepared and in the best possible position to make your dream home a reality.