Mortgage offer received - now guaranteed?

Calleja

Feel like its a stupid question but I am a worrier....

I had a mortgage in principle and to get that I had to supply my work contract, bank statements, payslips, ID etc.

Since then, I have put an offer on a house which has been accepted. Valuation done, mortgage offer was issued and sent to my solicitor a couple of weeks back. Survey done, searches ongoing.

Is my mortgage guaranteed at this stage? (I wasn't asked for any paperwork in addition to what I had initially provided, but figure everything was covered in the initial meeting.)

Alternative question - in relation to the mortgage, is there anything that can go wrong at this stage?

Thanks!

Abu-Dina

Calleja wrote: »

Feel like its a stupid question but I am a worrier....

I had a mortgage in principle and to get that I had to supply my work contract, bank statements, payslips, ID etc.

Since then, I have put an offer on a house which has been accepted. Valuation done, mortgage offer was issued and sent to my solicitor a couple of weeks back. Survey done, searches ongoing.

Is my mortgage guaranteed at this stage? (I wasn't asked for any paperwork in addition to what I had initially provided, but figure everything was covered in the initial meeting.)

Alternative question - in relation to the mortgage, is there anything that can go wrong at this stage?

Thanks!

We're almost in the same situation except for the solicitor doing the searches etc.

My wife keeps asking the very same question and my reply is always this:

Nothing's guaranteed until we've got the keys and moved in! Sorry I know it's sounds harsh but it's the truth. However, don't worry yourself too much there's just no point. Stay positive and carry on as normal as possible and if you do come across any obstacles then worry about them then.

Good luck!

Calleja

Abu-Dina wrote: »

We're almost in the same situation except for the solicitor doing the searches etc.

My wife keeps asking the very same question and my reply is always this:

Nothing's guaranteed until we've got the keys and moved in! Sorry I know it's sounds harsh but it's the truth. However, don't worry yourself too much there's just no point. Stay positive and carry on as normal as possible and if you do come across any obstacles then worry about them then.

Good luck!

Thanks Abu-Dina! You are of course correct, nothing is guaranteed until moving day!

Guaranteed was the wrong choice of word. I guess I'm asking the likliehood, at this stage, of the mortgage falling through. I understand the searches may highlight something that the lender may pick up on. But assuming they don't what else can go wrong with the mortgage at this stage?

I know there is nothing I can do about it and I am probably just trying to find something to worry about - but thats what I do!

Calleja

P.S. Good luck to you too Abu-Dina!

MajorTom_2

Decisions in principle don't guarantee you'll get the money I'm afraid. I read situations where the buyer has exchanged contracts and days before completing the lender has pulled the offer for one reason or another.
All I would say is don't take out any new credit between now and the day you complete!

MT

MoscowFlyer

You've received your mortgage offer, so relax. The mortgage is now in place, there's obviously never any guarantees when you're relying on other people but the money side of things is now sorted.

It's when you're in between the decision in principal and mortgage offer being issued that you need to be worried, as soon as the actual offer is issued though then I think the only thing you have to worry about is time, as they're only valid for about three months.

Building_Surveyor

If everything stacks up you should have nothing to worry about once the offer is issued from a mortgage perspective. My mortgage offer was valid for 6months.

Calleja

Thanks Building_Surveyor and MoscowFlyer. I had hoped that was the case.

MajorTom - it is an offer rather than DIP/MIP - but you make a good point about not applying for credit in the meantime - its a question I see asked lots on this site! I'm not making that mistake!

Guess I have to find something else to worry about...!

Spitroast

The "Decision in principle" the bank (or their call centre) can do with the 30 min questions they go through on the phone. You can use that to start house hunting but it means little.

It's the "Approval in principle" you really need, this is the next step where your details, payslips, etc are passed to the underwriters (risk-assessors) and they do their investigations which are quite intensive ...would you lend £100k+ to someone without being 100% sure they can pay it back?? Once they approve you can feel much more confident.

Be cautious though, the day of completion the bank could still say they aren't releasing the funds so nothing is certain until the deed is done I'm afraid. Good luck. I'm just waiting on an AIP myself for a house move.