Just been approved on a mortgage

Ste.._2

Wow, wasn't expecting that. Not just an approval in principle either, but the broker made it a full application so all I need to do now is "find a home"

Is it possible to do such a thing ahead of finding a property? I always thought that a full application could only happen when you had found somewhere.

It's an appalling interest rate because, despite my excellent credit rating, I only currently have a 5% deposit, so I'm wondering whether I should just stick it out for another 6 months until I have the 10% that would give me a much better rate.

So er, well I'm quite excited really, and equally apprehensive about the whole thing.

Are people putting in cheeky offers? I could afford my dream house in my home town tomorrow now if I could get 10% off it's asking price.......what's everyone's thoughts on such a discount in this climate?

:beer:

Best bit of all? No more renting :T

madmish00

It is still just a decision in principle.

You can only get a mortgage offer once a valuation has been done on the property you want to buy.

The only difference doing a 'full application' makes is that you have probably now reserved that mortgage rate for a period of 3-6 mths.

kingstreet

You can only submit a full mortgage application if you have full property and solicitors details and include details of how any fees should be paid, such as a debit or credit card.

Perhaps your broker has found people taking AIPs from him, then going elsewhere? The idea a full application has been submitted may deter one or two, I expect.

Ste.._2

Correct the mortgage rate is secured for 3 months, but I'm led to believe that only a failed valuation would cause it to not go through now? i.e. I personally meet all their criteria

Orpheo

Ste.. wrote: »

Wow, wasn't expecting that. Not just an approval in principle either,

I think you'll find that a decision in principle is exactly what it is.

Orpheo

Ste.. wrote: »

Correct the mortgage rate is secured for 3 months, but I'm led to believe that only a failed valuation would cause it to not go through now? i.e. I personally meet all their criteria

They may still do further checks after you've found a property.

A sudden, whimsical change of heart on the behalf of the mortgage lender could make it all fall through. Unlikely, but possible.

Ste.._2

Still, exciting though eh?

poppysarah

Save like mad for another 6-12 months.

Ste.._2

For a better rate, or a better discount on the purchase price?

kford224

We could have saved for a better rate, but at the end of the day we wanted a house together and were happy paying a higher monthly rate (which is still comfortable) if it meant getting a house sooner.

I know lots of people say to save, save, save; but I personally would rather get a house sooner and pay a higher rate for a little while. If you really want a house and the payments will be OK for you then get one now

You may find that by the time you find a house you really like, you'll have more money to put down anyway.

I prefer to bite the bullet than put things off, but that's just me

Orpheo

kford224 wrote: »

I know lots of people say to save, save, save; but I personally would rather get a house sooner and pay a higher rate for a little while. If you really want a house and the payments will be OK for you then get one now

Magic beans financial advice.