Mortgage Offer in Principle?

not_so_good_2

Hello

My partner has been offered a mortgage in principle. Does this mean the building society will now have credit checked him prior to this offer, or, do they give you the offer subject to credit checks?

I'm confused!

His credit should be ok, I think I am just paranoid and worrying needlessly, just want to know if we are out of the woods, or if our broker is just pretending we are...

Thanks

xx

luckyfool

Normally (but not always), a mortgage agreement in principle will have involved some basic details and a credit check having been run.

not_so_good_2

Would it worth me contacting the building society direct to find out?

I'm beginning to realise that I may be a slight control freak and I am not enjoying having to leave things to other people to do, especially when I am little worried lol

x

luckyfool

Who is the lender?

not_so_good_2

Leeds Building Society...

luckyfool

If it was through a broker, or assuming their direct process is the same, then a credit search should definitely have been run.

Bear in mind that even then this is not a guarantee, it would be subject to information not changing when the full application is submitted, the supporting documentation your partner submits all backing up the information provided (such as salary etc), and the valuation of the property being satisfactory.

If he is comfortable that everything he said to the lender was correct, and that he can prove everything then I would view it as around 90% solid, subject to the valuation.

From here all you can do is move forward to a full application once you have had an offer accepted on a property and keep your fingers crossed.

In fairness in all my dealings with them Leeds Building Society have normally been pretty good and service has largely been solid so I wouldnt worry too much. I have have dealt with some lenders in the past where the Agreement in Principle is worthless as they would not hesitate to change their mind once a case came in.

not_so_good_2

Ok, thank you

He has been asked to provide his bank statement and last payslip, ID etc, so hopefully it will all be ok.

All the credit crunch and mortgage stuff on the news has been off putting and a little worrying.

We're doing a shared ownership scheme, it's the only way for us to get on the market, so I just hope it doesn't all fall through.

Thank you so much though!

Pepper07

i have just been reading your post and we are in the same position as you were now, how has everything gone?

we have just had an agreement in principle accepted by leeds building society and we are doing the shared ownership scheme (hopefully)

whereabouts are you moving to? can you tell me a bit more details as i am stressing out too, we have been to see the perfect house for us and i'm scared we will lose it

Conrad

not_so_good wrote: »

I'm beginning to realise that I may be a slight control freak and I am not enjoying having to leave things to other people to do, especially when I am little worried lol

x

Then you might struggle buying a home. This is a pet subject of mine and I've often commented on how control freak clients bring nothing but chaos to the party, as too many different sets of hands end up getting involved and thats when things go wrong, plus you are stopping people actually getting on with the job as they are tied up 'updating' the control freaks.

By all means keep an eye on things, but honestly the control freaks in the end suffer from great stress and tend to cause chaos as I say, so relax when actualy into buying the house proper.

I know Solicitors who deliberately go slow when they get a puchy client as they get very irritated by these types that essentialy dont trust anyone else and therefore consider themselves to be of elevated status over others by definition.