decision in principle vs mortgage offer

nudda

ACG wrote: »

DO NOT get 3-4 DIPs.

Nobody needs anything more than 1 DIP.

Why would you need any more than 1?

I am of the opinion you do not need a DIP until you know how much you are buying for and are ready to apply. Rates and criteria can change daily so the best lender today may not be tomorrow.

So if I get Bank X DIP one day, and then on another day I choose a property and Bank Y has a better offer, what do I do? Am I forced to go with Bank X ? That's why I think it may require more than 1 DIP.

Note: I am not claiming to be a an expert here.I am a FTB but keen to learn and want to get the best deal as the loan amount is not small so repayments can vary greatly by small changes in interest rate. I am here to learn and hope you folks can shed some light on these topics. Thanks

ACG

You can get as many DIPs as you want, but it is not a good idea.

Get a DIP and then when you are actually ready to apply then you can do another DIP - but even then, it is only 2 DIPs maximum.

E&G

Thanks ACG, so as long as there's nothing of major concern (large discretionary spending with bookies etc) then DIP to offer should be fairly straightforward?

ACG

Should being the key word, but yes.

Are you ready for the cheesy analogy?
Imagine your Mortgage application is your new home. You want good foundations, so spend more time at the outset doing research and checking. Then you will spend last time snagging etc at the end.

nudda

ACG wrote: »

You can get as many DIPs as you want, but it is not a good idea.

Get a DIP and then when you are actually ready to apply then you can do another DIP - but even then, it is only 2 DIPs maximum.

Good point, although does getting 1 DIP mean chances of qualifying for other similar products is highly likely? For example, I have heard Barclays and HSBC are very picky. I guess you do those preliminary checks again and get the 2nd DIP then apply for the actual mortgage.

I will get one DIP done, and go armed with that to put in offers. If something gets accepted, will look into whats new on the market product-wise then do a DIP and apply for it. Thats what I have understood ...

E&G

I'll take a cheese analogy as my cue to exit the thread but the advice is appreciated!

Shamim26

Hi my broker first got dip mortgage amount of £110k they want bank statement and gift letter n bank statement for 3 month of gift person but my gift who gifted my brother don’t want to show us bank statement so I increase my borrowing amount from £110k to 124k my point is that if they see £14k transaction in my statement is it gona be any problem ??

Shamim26

Anyone gona help me so stressing getting mortgage now days please email me shamim784@hotmail.co.uk

Shamim26

Hi my broker first got dip mortgage amount of £110k they want bank statement and gift letter n bank statement for 3 month of gift person but my gift who gifted my brother don’t want to show us bank statement so I increase my borrowing amount from £110k to 124k my point is that if they see £14k transaction in my statement is it gona be any problem ??