When to apply for an AIP when selling.. and some other AIP questions.

lizards

Okay, this is probably a really stupid question, but I have spent quite some time trying to find the answer and failing miserably. It's probably so obvious nobody thought to write it down anywhere.

We have a house to sell, and want to buy a new, bigger house.

At which point in the process do we apply for a mortgage agreement in principle for our next property? Should we do it as soon as we have our house on the market so we have everything in place once we get an offer to start offering elsewhere? Or should we really only do it once we get an offer, as I know AIPs aren't valid for long? Are there any issues with repeatedly applying for AIPs each time they expire?

Once you apply for an AIP, how long until it is confirmed under normal circumstances? Is it an instant thing?

We're in London and the market is pretty healthy in our immediate local area, we'll be pricing realistically so we're hoping to sell within a few months.

Also as an aside - at which point do lenders check bank statements - is it at the AIP stage, or only with the full mortgage application? Pretty sure it's the latter but just wanted to make sure!

Thank you for your help!!

Senior_Paper_Monitor

Unless you have reasons to doubt your crdibility (and even then most of it can be worked out from your credit report) avoid AIPs until you have a specific property in mind and have selected the most appropriate lender on the day (the answer to that literally changes daily).

Multiple AIPs (credit checks) are bad practice.

The majority of AIPs are instant - and manual/referred ones normally within 24 hours for workdays.

Bank statements (and otehr documents) will be required and checked following the full application.

lizards

Thanks! That's what I was hoping/suspecting somebody would say but wanted to be sure!

I've bought houses twice - in 2000 (sold my share to my ex when we split, so never sold a house before) and in 2004 and in both cases an offer was put in on the same day the house came on the market as things moved so fast and we needed to be quick. I'm assuming that these days the extra 24 hours or so for an AIP before making the formal offer isn't such a big deal?

Dave_Ham

Welcome to the world of house buying/selling at the same time...

Have a good look through these forums and ensure you are appropriately prepared for all the games the Estate Agents play. They can be hard work, so do get your game face on.

As SPM said, get your Experian and Equifax reports and just verify that they have nothing sinister on them. It is not unheard of that something could have been wrongly reported and this way, you have time to get it amended.

Once you have accepted an offer and want to offer on a new place, then get an AIP then as said. An AIP can be achieved very quickly and sent to the Estate Agents to keep them happy - you do not need to see their finance checker, manager or whatever rubbish they say to check your financial suitability - this will be a ploy to see their in house mortgage advisor.

Good luck and do ask any further questions.

lizards

Thanks Dave! I'm absolutely certain it's going to be completely stressful.. I was blessed with two very straightforward purchases in the past and I know my luck won't hold forever!

I've been lurking on the forum a few months (made a few posts - I think you replied to some of them very helpfully ) and it's been really useful. I've learned so much, especially over the crap some estate agents will try and pull. I've already checked out Experian (squeaky clean, 991 for what it's worth!) but need to get onto Equifax as well really.

Our only sticking point is an NRAM unsecured loan of around 20K (no other debts) - this will be paid off end of January with my husband's bonus, but ideally we need to move before December due to the deadline for applying for primary schools. As a result we'll definitely be using a broker to maximise our chances of all going to plan. Of course if we can't sell before January, the NRAM loan is a moot point!! But having watched the market locally for the last few years I think we should be okay if we price realistically.

Thanks again!!