A mortgage offer is a document from a lender that says they are willing to loan you the money you need to buy a home. It’s the final step after you’ve applied for a mortgage, passed their checks, and the lender has assessed the property you’re buying.
The mortgage offer will include
- Loan amount: The offer will explain how much the lender has agreed to lend you and how much it will cost you cover the term of the mortgage.
- Terms and Conditions: it will also explain the key information of your mortgage loan, like the interest rate, repayment terms (how many years you will take to pay it back), and any special conditions such as repaying some debt you may have.
- Time Limit: A Mortgage offer often has an expiry date, typically around 3 to 6 months. This means you need to complete the purchase within that time, or the offer will become invalid, and you would have to reapply.
- Next Steps: Once you have the offer, you’re in a position to move forward with the property purchase. Your solicitor will be handling the legal side of things for you, they will also get you to sign the mortgage deed which is your contract with the lender to agree to pay the loan back.
This is a significant step in the purchase of your new home because it means the lender has agreed to lending the money to you. However, it’s important to understand everything in this document so get your mortgage broker or solicitor to explain it to you so you are happy and understand the the terms before moving forward.
