getting from mortgage promise to mortgage offer !

718

Hi we have recently been given a mortgage promise (bad credit mortgage) by GE money and we have had an offer accepted on a house.We now have to get through the mortgage application and im so anxious and worried that it will not go through ! i am wondering what experiences other people have had with this and what the chances are they that it will complete ??

Thrugelmir

Little point in worrying. Should turn out fine.

Your lender is unlikely to turn you down for a bad credit rating.

718

Are there any mortgage advisors who deal with the above who could advise me on what the process will be ? thanks !

Thrugelmir

On the basis that your application is accepted. GE will request a surveyor to value the property.The surveyor will confirm to GE that it is worth the amount you have offered.

billybear1

Do they do many further checks after offering the AIP though? Or once the AIP is given is it plain sailing with GE?

Thrugelmir

billybear1 wrote: »

Do they do many further checks after offering the AIP though? Or once the AIP is given is it plain sailing with GE?

When you submit the application. A more thorough review is undertaken. GE are a specialist lender that accept people that other lenders don't. This is reflected in the interest rates and terms that offer on their mortgages. So providing you have have completed your application fully and disclosed all relevant facts then there shouldn't be an issue. At the end of the application form you would signed the form beneath a declaration to this effect.

billybear1

But the credit check they do will highlight all possible issues with defaults before offering an AIP right?

Thrugelmir

billybear1 wrote: »

But the credit check they do will highlight all possible issues with defaults before offering an AIP right?

No. Lenders will often use only one major agency during the AIP process. For the application they will access data through multiple sources. The reason being that every enquiry made costs them a fee.

billybear1

So a default only showing on Equifax, when they do an AIP search through Experian will cause the AIP to be withdrawn?

Thrugelmir

billybear1 wrote: »

So a default only showing on Equifax, when they do an AIP search through Experian will cause the AIP to be withdrawn?

The AIP is not a mortgage offer merely an indication as to what a lender may advance. Impossible to speculate whether GE will accept your application or not. As only they know the criteria on which they will lend. Involves far more than one default in arriving at a decision.

billybear1

Thank you ever so much for your response. I appreciate your input. If we went for a 20% mortgage and they then said they would lend at 25% would you have to pay their application fee again?

Thank you once again.