If you’re buying a house, you’ll want to know when to apply for a mortgage. The best advice is to start the process before you even start seriously looking for somewhere to buy. By starting the mortgage process as early as possible you’ll know your budget and be in a stronger position with sellers – so you’ll reduce the risk of losing your dream property.

There are several reasons to begin the mortgage process before you start viewing properties or putting in an offer:

• You’ll know your budget. You need to find out how much you can afford. This is particularly important if you’re in a more complex financial position, such as being self-employed. Many home buyers end up losing a property because they couldn’t borrow as much as they thought.
• If you have your finances in place, you’ll be at an advantage compared to rival buyers who do not have a mortgage in principle (Sometimes known as an AiP or DiP – Agreement in principle or decision in principle). Most estate agents and their home selling clients will expect you to have a mortgage in principle when you make an offer.
• If you are thinking about buying jointly with anyone (e.g. a partner or parent) or buying with a friend, then this will affect the sort of mortgage you can get and how much you can borrow – so you should sort this out before you start looking.
• Starting the mortgage process early will help to avoid delays and problems with your mortgage. The secret to smooth home buying is to reduce the surprises as much as possible.

What to do before you apply for a mortgage
To maximise your chances of your mortgage being accepted and your house purchase being successful there is important work you can do before you apply for a mortgage.

1. Get mortgage ready
Make sure your finances are in good order – make sure yourcredit ratingis as good as it can be to make a successful mortgage application.

2. Work out your budget
Whether you’re looking to buy your first home or you’re moving house, you’ll want to know what your budget is before you start house-hunting. You’ll usually need a deposit of at least 5% to get a mortgage, although the bigger your deposit, the more and deals you’ll get access to and often better rates too..
Using a mortgage calculator will give you an indication of how much you’re likely to be able to borrow but it’s advisable to speak to a fee-free mortgage broker too. They’ll outline what your options are likely to be and how much you’re likely to be able to borrow on a mortgage.

3. Consider the type of mortgage you need
Think about what type of mortgage you’d like to take out; would you prefer a fixed deal so you have certainty on your repayment amounts or would you prefer a tracker deal, hoping it will be cheaper overall? You won’t need to commit now but considering your options in advance means you’ll be able to make a faster decision when it comes to choosing the mortgage you want to take out. A mortgage broker will run through the pros and cons of each mortgage type with you to help you make an informed choice.

4. Do you want to buy using a government scheme?
If you’re buying a house, it’s a good idea to explore whether you want to use a government scheme like shared ownership or First Homes scheme to buy a home well in advance of when you need to apply for a mortgage.

5. Prepare your documents for your mortgage application
When you apply for a mortgage you’ll need to provide documents like proof of earnings: If you’re employed, you’ll usually need to show your payslips from the last three months and your P60, while if you’re self-employed, you’ll usually need your last two years’ SA302s and your tax year overviews for those years too. Plus you’ll need to show bank statements and proof of ID and your current address. So make sure you have these to hand to avoid delays when you need to apply for a mortgage.