Applying for loan with mortgage in principle underway

Katastrofee_2

Hello all,

We have secured a mortgage in principle and should exchange contracts in 6 weeks and we don't anticipate any problems

Which is why we want to start ordering some stuff for the new house, especially with the January sales.

As most of our money is accounted for with the deposit, we were planning on getting a loan/credit cards to buy kitchen and bathroom for the new house, but should we wait until after exchange of contracts?

May sound silly but we're new to this and I didn't know if this would affect our credit rating even though we've been agreed the mortgage in principle. Should we wait until exchange of contracts before applying for any credit or is the mortgage application basically taken care of?

Cheers!

Kat

GMS

A decision in principle is far from the mortgage being taken care of. A DIP is based on what is relevant at that time.

Full application and underwriting will be done afterwards.

Are you sure you can afford to take on credit at the time you have taken on a mortgage? Would the lender issue a mortgage if the credit was in place?

You need to ensure you could afford all of the outgoings as this is what the lender will do. If you cant then make do with what is in the house for now. Save and buy new later.

Whatever happens do not try to apply for the mortgage without disclosing all credit. This would be fraud

Katastrofee_2

GMS wrote: »

A decision in principle is far from the mortgage being taken care of. A DIP is based on what is relevant at that time.

Full application and underwriting will be done afterwards

Thanks GMS - that's what I needed to know. I don't want to jeopardise the mortgage we're been considered for. I wasnt sure if they went on what was the situation upon application or etc.

We can afford loan repayments on top of the mortgage that we've been offered, but now I know the procedure, we won't apply for any other credits until contracts have been exchanged

Thanks for your help!

betmunch

Make that Completed rather than exchanged and your sorted.

I'm just being super cautious, but for the sake of a week why risk it?

Cheers

Henry_P_Chester

Full credit checks will be carried out when you make the full application. So its probably best to wait until after you've completed.