What stage to get an agreement in principle?

tyler80

We've been looking at houses for a while now (FTB), I have a rough idea of how much we want to borrow which is quite a bit less than what the online calculators say we could borrow but we've not gone as far as getting an agreement in principle yet. We're not in a rush to buy, the market is still fairly static round here and we're happy to wait a fairly long time until something comes up that we like.

Is there any point in getting an agreement in principle now, even though it may expire before we find anything we'd want to make an offer on?

Will it be detrimental to us to keep redoing an agreement in principle?

Thanks

kingstreet

I wouldn't bother yet.

Order paper copies of your credit files from the three CRAs for £2 each and make sure there's nothing on there you need to action.

Don't start with searches on your files until you have to.

tyler80

One more thing, my parents are helping us out by giving us some money towards our deposit. Do we need proof of this at the agreement in principle stage?

kingstreet

tyler80 wrote: »

One more thing, my parents are helping us out by giving us some money towards our deposit. Do we need proof of this at the agreement in principle stage?

No. Not that early.

When you make a full application expect to be asked for confirmation and that it is a gift, not a loan.

Wh05apk

I would take the opposite view to Kingstreet, get an aip and speak to a broker as early in the process as possible, so you know what you can borrow, and what it will cost you, at least then you will not be wasting your time/hopes looking at the wrong properties.

Assuming you have no concerns over credit I wouldn't bother getting your credit files, just go straight to an AIP.

tyler80

So one for one against, any more?

Wh05apk

tyler80 wrote: »

So one for one against, any more?

Your choice, would you rather know now what you can get, and work towards it, or carry on as you are, and find out you have been going down the wrong track later?

tyler80

I don't want to risk my credit rating by having to get repeat agreements. And it all seems a bit theoretical when I know people who've got the aip but had their mortgage refused.

Maybe an agreement in principle now but if that expires to wait until we want to make an offer to get another?

Thrugelmir

tyler80 wrote: »

So one for one against, any more?

Having an AIP may mean that your offer on a property will be accepted straight away. Over the years I have encountered enough timewasters when selling homes to always ask if the potential purchaser has one. As demonstrates seriousness of interest.

Wouldn't bother until you ready to purchase though. As who knows which lender will have the best product for you until that time.

Wh05apk

Thrugelmir wrote: »

Having an AIP may mean that your offer on a property will be accepted straight away. Over the years I have encountered enough timewasters when selling homes to always ask if the potential purchaser has one. As demonstrates seriousness of interest.

Wouldn't bother until you ready to purchase though. As who knows which lender will have the best product for you until that time.

Agree with your comments about showing seriousness, from an agents/sellers pov, that is all it is, from your pov it is peace of mind, purely so you know where to target your search.

At this stage, the lender really is irrelevant, you just need to confirm figures, and get an AIP. Don't worry about "multiple" AIPs affecting your credit, an odd one here and there won't make the slightest difference.

kingstreet

tyler80 wrote: »

we're happy to wait a fairly long time until something comes up that we like

I went off this and thought an AIP superfluous at this time and likely to need updating before the OP starts to look.

However, sod's law suggests the OP will find exactly the right property five minutes after I press the "submit reply" button.