Credit checks - generally when are they done?

carrot_cake

Hi all
I've just seen this subject mentioned on another thread but am a bit confused (it doesn't take much!) Is there a general rule as to when credit checks are done for mortgage applications? We are still awaiting a DIP (long story, this is the 3rd week). Will we be credit checked before we get this? I thought that you got a DIP and checks were then done after full application.

TIA

kingstreet

carrot_cake wrote: »

Hi all
I've just seen this subject mentioned on another thread but am a bit confused (it doesn't take much!) Is there a general rule as to when credit checks are done for mortgage applications? We are still awaiting a DIP (long story, this is the 3rd week). Will we be credit checked before we get this? I thought that you got a DIP and checks were then done after full application.

TIA

Which lender?

It's easier to ask than it is to go through all the permutations.

carrot_cake

Sorry, should have added that info, it's Nationwide.

kingstreet

Right.

If you apply to Nationwide for a decision in principle, you are fully checked/scored at that time. Provided your full application, when submitted, is for the same amount and loan to value or less and your application is within ninety days of the DIP, no further checks are done.

If you don't get an early DIP, the first part of a full application is the DIP which you could have done earlier. You can't submit a full application without going through the DIP process, sooner or later.

So, if you have a DIP, you have been credit checked/scored.

This is not necessarily how other lenders work, so other readers, please do not assume this applies to your lender. Although, it might.

carrot_cake

Thanks for that information. Nationwide are our current lenders and we are moving house but only wanting to borrow the same amount as we have now. We also have a large deposit (45 per cent) but we were worried because our joint income includes allowances for disability/carer, which we would need to be taken into account. I was also concerned because I have some late payments on a mail order account showing on equifax (although this account is now paid in full). I have read that Nationwide use Experian to credit check (which happens to be the one I haven't seen yet, still waiting for login details).

I thought that even if we got the DIP, a credit check wouldn't have been done and there was a chance we could have been turned down after DIP/valuation.

kingstreet

No. The credit check is done at DIP by Nationwide, as stated.

carrot_cake

Thank you.

I know this may seem like a billion dollar question but, in your opinion, would you think that the fact that they asked for further copies of paperwork (carer's allowance award) today is an encouraging sign

kellyt86

Thanks for this...
I am awaiting on some paperwork for my formal mortgage offer from Nationwide. I had the full credit checks for the DIP and the full application went in same day!
It's good news that shouldn't have another check as was wondering! :T

kingstreet

carrot_cake wrote: »

Thank you.

I know this may seem like a billion dollar question but, in your opinion, would you think that the fact that they asked for further copies of paperwork (carer's allowance award) today is an encouraging sign

It's just part and parcel of the underwriting process.

If the question is;-

"they haven't declined me. Is a request for more paper a good sign?"

the obvious answer is yes, as you haven't been declined.

TBH I risk taking out my frustration out on you. Whenever I answer one of these opinion threads, I always wish I hadn't.

The only person who knows your situation is you. If you employ a professional to do this for you, they might know you second best. Anything suggested on here is speculative, at best.

In the end, I find myself wanting to answer "I'm sure you'll be alright" because statistically that is probably the right answer, although unsatisfying at the very least...

... and kelly I didn't say you couldn't have another check. The usual check is carried out at DIP stage, but each lender may sample a certain proportion of its cases and this may result in an audit which comprises another search, references, extra documentation etc.

Can open. Worms everywhere. Wish I'd watched TV...

carrot_cake

Regardless of outcome and the worms everywhere, I really appreciate your input, thank you.

kellyt86

Thanks Kingstreet! Hopefully mine will all be ok!

Hoping all will be well! :-) but yes cans of worms in this house buying lark