Help needed in understanding the approval process

Michelle_Louise

Hello

I know the way in which this done can vary slightly depending on the specific bank and lending criteria but I'm just after a little more clarification.

From my very brief experience so far as a first time buyer it appears to me there are three stages.

1. Being given an AIP
2. Going through full application process, for us this was done over the phone and told the full credit check was done then and came back fine.
3. Following on from succesful phone call, paperwork sent out and Sign declaration and send off ID, statements etc and wait for full
approval.

I'm currently at stage 3 waiting for the full approval (with HSBC) so I'm just wondering had there been a problem with either credit file, would that have thrown up a problem over the phone during the full credit check? And subsequently declined there or can this still happen with the underwriter? (mortgage of 90%)

Thanks

Thrugelmir

Do you believe that there's an issue which could raise its head?

If not, relax. Processing applications can at times take a few days. Has the property been valued?

Glasgow12

I was declined at the final underwriter on the basis of a cross over of addresses, I have no idea what that means! The credit check went through ok, I've double checked everything again 2x and my credit reports are clear so I'm baffled.

A horrible process but fingers crossed it all goes ok for you.

Michelle_Louise

There is the odd issue that worries me, for instance I used a lot of my £150 overdraft for quite sometime. I got rid of that a couple of months ago though so I'm hoping they would see that as a plus. We barely have £1,000 owing to credit cards between us also.

I can see that I have some reason to worry a little but I suppose I was hoping that having had the full credit check go OK over the phone it would act in our favour. I also understand that HSBC have very strict lending criteria but I'm trying to be positive. Paperwork was took into branch with personal docs on Thursday but with bank holidays it's not been received as yet.

Glasgow12 is this not something you could clear up with them and explain the reason for the crossover?

Thrugelmir

Michelle_Louise wrote: »

There is the odd issue that worries me, for instance I used a lot of my £150 overdraft for quite sometime. I got rid of that a couple of months ago though so I'm hoping they would see that as a plus. We barely have £1,000 owing to credit cards between us also.

Wouldn't be viewed well on the basis of a 90% mortgage.

Glasgow12

michelle-louise,

im waiting for my broker to get back to me about it but tempted to contact the lender direct to find out what's going on, seems daft to me but maybe that's because i'm a first time buyer.

Michelle_Louise

Thrugelmir wrote: »

Wouldn't be viewed well on the basis of a 90% mortgage.

Yes after reading many other posts and threads this is my fear, but I've also read similar situations to mine for a 90% mortgage with HSBC that have been approved. Would it make a difference that the mortgage would only be for £99,000?

Can I also ask, why after doing a full credit check on us and saying that it has shown no risk and "all OK" would they then say no? Is it that the underwriter will sit there with our statements and thoroughly check with a fine toothcomb?

Sorry if that sounds like a stupid question or is a stupid question but I'm just trying to understand it better.

Michelle_Louise

Glasgow12 wrote: »

michelle-louise,

im waiting for my broker to get back to me about it but tempted to contact the lender direct to find out what's going on, seems daft to me but maybe that's because i'm a first time buyer.

Was your application with HSBC?

Thrugelmir

Michelle_Louise wrote: »

Can I also ask, why after doing a full credit check on us and saying that it has shown no risk and "all OK" would they then say no? Is it that the underwriter will sit there with our statements and thoroughly check with a fine toothcomb?

Underwriters have the final and definitive say. No one else.

Much will depend on your previous credit history and usage.

Glasgow12

Michelle_Louise wrote: »

Was your application with HSBC?

No,
it was with Nationwide. I've read varying reviews about them. I private rent and can only see cross over address being to do with that. Mortgage mystery to me!

Michelle_Louise

Just checked my credit reort with equifax and Callcredit, not sure it was a wise move as I'm now even more scared and pretty much convinced myself it's going to be bad news.

Main thing flagging up is 2 late payments on credit card last April/may. Balance was only £3 and only thing I can think of was interest that I had missed :-(