Applying for a loan

csharma84

Hi

We are in the process of purchasing a house. We have had the mortgage offer, but haven't yet exchanged contracts.

We are also getting married in a few months. I am running low on funds for the wedding and will need to top-up my existing loan. I have checked experian and the lender is already showing on there that they have performed a search. I want to know whether I will be OK applying for the loan now or whether I need to wait until we have exchanged on the house? Will the lender perform another credit check before they issue the funds?

Thanks for your input.

DCFC79

csharma84 wrote: »

Hi

We are in the process of purchasing a house. We have had the mortgage offer, but haven't yet exchanged contracts.

We are also getting married in a few months. I am running low on funds for the wedding and will need to top-up my existing loan. I have checked experian and the lender is already showing on there that they have performed a search. I want to know whether I will be OK applying for the loan now or whether I need to wait until we have exchanged on the house? Will the lender perform another credit check before they issue the funds?

Thanks for your input.

Did you not set aside x amount of money for the wedding ?

Tixy

Wait until you have completed the purchase on the property (not just exchanged)

Your mortgage lender may check your file just prior to completion before they issue funds and there are cases where additional debts have caused a last minute decline in the mortgage (which can get very very costly).

csharma84

DCFC79 wrote: »

Did you not set aside x amount of money for the wedding ?

No, clearly not.

SHill

Hey - just a thought....
You really need to ask those questions do I really need it? & do I really want it?
Can you not borrow, beg friends/ family for certain items. Get some honest advice about increasing this loan, before your big day. Or are you just being frivolous.
Expectations for the big day always run high remember you have one day to get married, enjoy the day. Lifetime together! What you don't want is to looking at another few more months/ years added of a loan you have to pay back.
Get some good solid advice from a family/friend that you believe that support you & make you think.
Buying a house getting married, the possibility of growing family soon after.
Try to economise elsewhere if you really need to have the funds for the wedding. If not increase your loan but you will need to pay it back eventually.
Be realistic with your expectations & budget. Remember about joint finances too! You should discuss this further with your partner.

csharma84

SHill wrote: »

Hey - just a thought....
You really need to ask those questions do I really need it? & do I really want it?
Can you not borrow, beg friends/ family for certain items. Get some honest advice about increasing this loan, before your big day. Or are you just being frivolous.
Expectations for the big day always run high remember you have one day to get married, enjoy the day. Lifetime together! What you don't want is to looking at another few more months/ years added of a loan you have to pay back.
Get some good solid advice from a family/friend that you believe that support you & make you think.
Buying a house getting married, the possibility of growing family soon after.
Try to economise elsewhere if you really need to have the funds for the wedding. If not increase your loan but you will need to pay it back eventually.
Be realistic with your expectations & budget. Remember about joint finances too! You should discuss this further with your partner.

Thanks for your advice, really appreciate it. We were expecting some help from my parents and budgeted on that expectation, unfortunately my parents have had some unexpected outgoings and are no longer able to help as much as possible. We have done as much scrimping and saving for the wedding.
The alternative to a loan is using my overdraft, which at the rates being offered is quite expensive. I will defo wait until after I have the house completed before even thinking about borrowing any money.

SHill

Hey,
No worries, the run up to the big day, can become over whelming.
Make a list of what is required & get at least 2 or even 3 places for prices on each item that is left to get.
Plan plan& plan be really open & honest with your partner about what is needed. Do your research on buying the items from websites. Ensuring of course the site is legitimate.
Then justify the increase in loan that way you will have ball park figure if you need the extra money. Plus you have an idea how long the repayments will be. Better have headache now so that you are being realistic. Then going to bank & asking for an amount well & above what you need. You then need to ensure you can do the repayments.
Martin famous for saying you should have least 3-4 months emergency pay incase your rainy day comes all in at once.
Don't bury your head it's good to discuss about financial matters with your partner. It took me long time to do that.
All the very best but don't seat back.
Can you/ both do any overtime? Spend less now, stop spending money on expensive lunches? Put a budget now. You will once your married any how?!
Just some ideas to mull over..