Mortgage Agreement in Principal. What can go wrong?

san09

Hi All,

We have an Agreement in Principal, and have had an offer accepted on a house.
What could possibly go wrong now?

Also is it possible that the interest rates quoted on the document could have changed, and there may be better rates available through the same lender, or are we tied to the rates quoted?
Do we ask about that when we go through the full mortgage application on Monday?

Thanks in advance for any advice.

Thrugelmir

Pointless thinking the worst. Think positively. :):)

firsttimetom

The 'worst' thing that could happen is that the valuation on the property comes back less than what you have offered and they won't lend you the money.

Of course, this may not be so bad as you should be able to negotiate the vendor down if they are serious on selling the house.

leewigan

An agreement in principal is basically saying that they will lend you the money providing all of the circumstances stated are true.
Once you go ahead with the full application, they will ask for proof of what you earn and what you spend. Providing everything is in order and (as stated above) the valuation on your purchase property comes back ok, everything will be fine

jln_2

leewigan wrote: »

An agreement in principal is basically saying that they will lend you the money providing all of the circumstances stated are true.
Once you go ahead with the full application, they will ask for proof of what you earn and what you spend. Providing everything is in order and (as stated above) the valuation on your purchase property comes back ok, everything will be fine

I wouldnt be so sure of that. We got an AIP, all circumstances matched what we stated, they even offered us more than we wanted but still turned us down on full application. Our broker was very surprised as we shouldnt have had any reason for doubt.

san09

Oh I hope that doesn't happen to us.
Rang our bank this morning and gave actual figues etc and mortgage advisor said the mortgage had flown through and there should be no probs.
Should we still be concerned?

SGE1

You'll probably be fine.

And yes, interest rates can change. Our rate upped by .5% between the time we got the agreement in principle, and the time we actually secured the mortgage after having had an offer accepted. Very annoying, but that's life.