How to Get Pre-Approved for a Mortgage in Liverpool

The journey to owning your own home can sometimes be a long and drawn-out process, but there are simple things you can do to make it a little easier.

Getting a mortgage pre-approval is a clever move that shows you exactly how much lenders are willing to lend you. It also proves to sellers that you’re in a position to move forward with the sale and get the ball rolling.

Understanding how to get pre-approved for a mortgage in Liverpool is valuable knowledge for newcomers and seasoned investors.

What is mortgage pre-approval? 

A mortgage pre-approval is an agreement from a lender to provide you with a mortgage for up to a specified amount based on information provided about your financial situation.

It differs from a pre-qualification, which gives a rough estimate without knowledge of your finances.

In Liverpool’s bustling property market, having pre-approval shows sellers that you’re a serious contender and gives you a competitive edge when multiple buyers are all after the same property.

The perks of pre-approval in Liverpool:

• Stay ahead in a competitive market: Average house prices in Liverpool, as of November 2024, reached £189,000. Being pre-approved can set you apart from other buyers. 

• Clear budget insights: Being pre-approved gives you a clear picture of what you’re able to borrow, helping to narrow down the properties you search for.  

• Stronger negotiation position: Sellers are more inclined to consider offers from pre-approved buyers, especially if they want a quick sale.  

  
  

Key requirements for a mortgage pre-approval 

To begin the process of a pre-approved mortgage, you’ll need to provide some information. This includes: 

• Proof of identity: Either your passport or driver's licence will do.  

• Proof of income: Recent payslips, employment contracts, or tax returns if you’re self-employed.

• Credit history: Lenders will look at your credit history and your financial history. 

• Proof of deposit: Documents that show your savings or a gift letter if the funds are from family.

• Current expenses: Bank statements that show your monthly outgoings and existing debts.

  
  

A guide to getting a pre-approved mortgage 

1. Evaluate your finances 

Take a look at your income, expenses, and any outstanding debt. There are multiple online mortgage calculators you can use to get an initial estimate of what you can expect to borrow. 

2. Review your credit score 

A higher credit score is ideal to ensure that you get the best mortgage rates available. If you think you can improve your score, consider steps like paying down debts or correcting any errors on your credit report. 

3. Organise necessary documents 

There is a lot of paperwork required when it comes to applying for mortgages and pre-approvals, gathering everything you need, including identification, income proof, and bank statements. 

4. Consult a mortgage advisor or lender 

Decide whether you’d like to approach a specific lender or work with a mortgage broker. Choosing a local mortgage broker can offer insights into the specific market you’re looking to buy into. 

5. Submit your application 

Provide all of the necessary documents and wait for the lender’s decision. 

6. Obtain your pre-approval letter 

This letter shows the loan amount you’ve been approved for. Typically, it is valid for 60 to 90 days. 

Mistakes to avoid during mortgage pre-approval 

Try to avoid doing any of the following when you’re looking to get a pre-approved mortgage. 

• Avoid new credit applications: Opening new credit lines will affect your credit score. 

• Don’t deposit large, unexplained amounts: Red flags will be raised for unexplained large amounts of money, so you need to ensure that all funds are traceable. 

• Disclose all financial obligations: Don’t try to hide any debts, as this can affect your application. 

• Pre-approval isn’t a guarantee. It’s a strong indicator, but the lender's valuation of the property will determine the final approval of a mortgage. 

  
  

What to do after your pre-approval 

• Start house hunting using your approved loan amount as a guide to look at properties that aren’t out of your budget. 

• Use local estate agents that work in the areas where you’re looking to buy. Get in touch with them and see if they can show you listings that aren’t on the market yet. They can give you insights into the neighbourhoods that you’re looking to buy in. 

• Maintain communication with your lender and let them know if there are any significant changes to your financial situation. 

Securing a mortgage pre-approval isn’t a necessary step to getting on the property ladder, but it certainly helps when buying a home.

Contact our team today to begin the process of a mortgage pre-approval with our expert mortgage advisors.