Don't panic, just get your act together early

The property selling season has arrived with gusto. Bids are being made, houses sold and all involved preparing to live happily ever after. But the supply of properties does not always stretch to meet demand while some sellers will find it hard to offload the property they thought would sell in a matter of days.

It is at times like these that panic can set in, with buyers and sellers suddenly prepared to do what should be off-limits - bid more than their budget or sell for less than they need. If this happens, it's crucial that all financial decisions are made with a clear head. This is why it's a good idea to arrange a mortgage long before finding a house that merits a bid or (if you're lucky) a purchase.

The mortgage will often be the easiest bit of the jigsaw to fit together, presuming that you are a sound candidate for a loan. This will usually involve having a reliable income, a good credit history and sufficient savings to ensure that you are borrowing no more than 92 per cent of the property value. (Some professionals will qualify for 100 per cent loans.)

The point at which the mortgage should be sought will vary, but it will never be too early to knock on the door of the bank manager or mortgage broker. Once he or she is satisfied that all the boxes have been ticked, a letter of "mortgage approval" will be issued. This means that, as soon as the would-be buyer finds the property they want, the mortgage issuance process can start without further delay.

Mortgage approval will be valid for between nine and 12 months once granted. This could change if the circumstances of the mortgage candidate alter in the meantime. If you lose your job after being approved for a mortgage on the basis of your salary, you should inform the lender so that they have a true picture of your financial situation.

This is because mortgage approval will tend to be approved with reference to an applicant's P60, the tax document which shows how much they earned in the previous year. In addition, the mortgage provider will require a few months of recent bank statements and recent payslips to give them a current picture of a person's situation. They may also ask the applicant to get their employer to fill a form testifying to their job status and wages.

These administrative hurdles should all be relatively straightforward, provided the applicant tells the truth. They can take some time to cross, so again, it will be best to address them as early as possible.

Another area requiring prompt attention will be insurance. Most homebuyers take out two kinds of policies when they take possession of a property - one to insure their life on behalf of the mortgage company and one to insure the property. The problem with these is that it will naturally be difficult to arrange this type of policy until a property is sale agreed. The cost of both will vary according to the value of the house or the mortgage that will be involved, and neither detail will be definite until the later stages of the process.

As soon as the information is clear, however, time is of the essence, particularly on the life assurance side. Life cover is commonly delayed due to the health history of the applicant and can, on occasion, be refused. All will not be lost if this happens, but as with all mortgage matters, dealing with the problem will take time. The lesson in all of this? Act early in all mortgage-related matters.