First Time Buyer Process

shell88

Hello,

We have been waiting since last August for the 2nd phase of a new build development to be released. It was finally released last month but we were unable to secure one 

Since then we have just been concentrating on saving a bit more money until something came up. Today a perfect house for us came on sale and we have arranged a viewing for this Saturday!

I’m just wondering if we are able to view this and potentially make an offer without having a AIP in place? Can we get an AIP between now and Saturday?

I’m also worried about an AIP as I don’t have the best credit history 

Any help would be much appreciated as I’m new to this whole process!

jdc23

You can get an AIP pretty much instantly. You can do one yourself online with a lender or find a broker to do one for you. Just to clarify is this new property also a new build?

shell88

Oh ok, Thanks for coming back so quickly! No this one isn't a new build. Will there be a credit check though, I'm just a bit worried about doing it myself if there is?

elverson

Try the Natwest one online - it only uses a 'soft' credit search so will have no impact on your credit rating.

http://personal.natwest.com/personal/mortgages/pre-apply-information.html

BLOW_FLY

I wouldn't be worried about an AIP or whatever the lender wants to call it, it isn't really worth the paper it's written on IMHO. It's just based on some very basic information and is not legally binding in any way shape or form nor any guarantee of a mortgage offer.

The acid test comes when you go for full mortgage application and the lender will varify incomes, check affordability, hard search credit history etc etc.

You don't need an AIP to make an offer on a house btw.

BF

elverson

You don't need one, but it helps to show the seller/EA that you are 'serious' if there are other buyers interested.

kingstreet

Some lenders carry out a fully-scored decision in principle and carry out no further search when the case is converted to a full application. Nationwide is one such lender.

If you are not sure about your credit history, get a copy of your credit file from https://www.noddle.co.uk and put it in front of a broker before you start with speculative credit searches of any kind.

ndf9876

I was just going to add - if you use a broker for your AIP /DIP, I believe (and someone 'in the know' - please do correct me if I'm wrong) that some of them do 'hard' credit searches.

NatWest was given to me as one example where, if you do it yourself, it's a soft search - when a broker does it, it's a full / 'hard' search.

Just something perhaps to bear in mind!

kingstreet

ndf9876 wrote: »

NatWest was given to me as one example where, if you do it yourself, it's a soft search - when a broker does it, it's a full / 'hard' search

I've never tested it, but allegedly if it's done on the NatWest website, it's a soft search but if it's done on MTE (Mortgage Trading Exchange) it's a hard search.

Brokers can use either.

ruperts

I got an AIP from London & Country (broker) almost immediately (they emailed it through at the end of the phone call) based on some basic details and no credit check. Estate agent was satisfied enough to allow me to make an offer.

Zeni

I didn't have an AIP when we offered on our house but had chatted to a broker previously and done a fact check with him before we started house hunting so could say to the EA I already had a broker in place ready to go (who they phoned and he confirmed our affordability) and then he completed the AIP and mortgage app a few days after offer was accepted.