Advice needed: Getting DIP before making an offer

nyc_451

Hello, first time buyer here, slightly confused.

I came across a property that I like, will be viewing it on Saturday. The agent asked whether I had an offer from a bank implying that I should know whether they'd be willing to lend me. However, nationwide told me to apply for a decision in principle only once my offer has been accepted. But on their website it says:

A DIP certificate is a free, no-obligation confirmation of whether we’d be prepared to lend to you. You can get a DIP before you make an offer on a property and you can apply for it online, even if you want to continue your application over the phone or in branch.

Any advice, please?

Theguywhovapes

Dip before offer, how will you know if you can buy it without being able to know?

You won’t go through advice until offer is accepted, but they should give you a DIP beforehand.

nyc_451

So if I get a dip and then do not go ahead with this purchase, can I keep house hunting for some time? Will I need to enter a figure I want to borrow or will they just tell me the max amount I potentially could get? Thanks .

ACG

I usually get a DIP once your offer has been accepted for a number of reasons. However, sometimes agents do insist on a DIP before offering.

A DIP does expire after 2-4 weeks usually, so it can mean a wasted credit check.
Also the best lender today may not be tomorrow, not so much an issue if you are using nationwide come what may.
Lastly, a DIP can show how much you can lend. If you give that to an agent, they know how much to push you when negotiating.

nyc_451

Thank you 🙂