When to apply for a mortgage

Maceycat

OH and I are FTBs and have been checking out websites to see how much we can borrow. We haven't officially applied for a mortgage yet as my bank told me to find a property up to the value on the online tool first because the credit searches would have a negative effect if we then didn't buy straight away. But am I right in my understanding that these tools just give a rough idea of what they will lend and that the actual amount may be lower?

If so, are we right to wait or should we get an offer in principle so we know what we can afford?

Sorry if this is a dumb question but neither of us know what to do...

Wh05apk

Not a dumb question but a bit of a dumb comment from your bank! Yes a credit check will show on your file, but if its just one, it will have minimal effect, you need to get a firm agreement in principle from a lender (any lender will do) this will check that there are no credit issues lurking that you were not aware off, also some lenders lend according to credit score, so without a check, you cannot be sure how much they will lend.

I would suggest you contact a broker and get a check done.

BMSrachael

You can get an agreement in principle without them doing a credit check. You just have to sit down with someone and run through your ingoings and outgoings, and they will be able to tell you how much you can borrow based on that. The credit search comes later.