First time buyer, panicking

shankerrison

Me and my partner have just reserved our first home which is a new build with a decision in principle from a lender, our build is due to be completed in September . Once we reserved we found out we only had 4 weeks to have the official mortgage approved and not the initial 3 months we thought we had. I am now panicking like crazy as 3 months worth of statements will show my balance after and Pre-Christmas ( everyone is tight over this period and spends like crazy ) and I have only just paid my overdraft off. Will my overdraft look bad to lender even though it is now paid off? My partners credit score is perfect at 999 but could I affect the mortgage been approved? Any advice would be great. Seeing our mortgage adviser on Friday to complete all the paperwork. I've read loads of forums with people saying they have been approved for mortgages with overdrafts a lot larger then what mine was but the anxiety is kicking in now as its our dream home, my partner keeps telling me not to stress.

amnblog

None of this is an issue in itself.

Waiting a week to get started with a mortgage adviser when you have just four weeks to exchange seems a little cavalier

shankerrison

This was unfortunately the only appointment the adviser could fit us in this week, we reserved the house yesterday and really we had no clue we would reserve a house so soon!!. With regards to the overdraft / statement situation I have really bad anxiety so naturally i panic and stress over things, so I am petrified the mortgage will be declined. I have read other peoples stories in worse situations who seemed to have been approved but doesn't put me at ease!

EllezBellz

We have had our mortgage approved with outstanding debt on credit cards and an overdraft. I won't lie to you, its a very stressful time with a lot of waiting around, but you don't know until you try. We honestly thought we'd not get approved but here we are, also if one lender says no, doesn't mean another won't accept you. Good luck

Firsttimebuyers

EllezBellz wrote: »

We have had our mortgage approved with outstanding debt on credit cards and an overdraft. I won't lie to you, its a very stressful time with a lot of waiting around, but you don't know until you try. We honestly thought we'd not get approved but here we are, also if one lender says no, doesn't mean another won't accept you. Good luck

Same here - although our lender was quite quick compared to some stories I've read.


It seems to be more of an issue if it was an unauthorised overdraft from what I've read on here, when we were researching ourselves.

shankerrison

Thanks everyone, good to know other people have been approved in the same situation. I still have a bit of debt on my credit card but i pay monthly payments on this, paid my overdraft off in full last week. Quite possibly picked the worst time to try and have a mortgage approved straight after Christmas but hopefully I can write back with good news in a couple of weeks!

spadoosh

I was under the impression that mortgage offers only last for 6 months?! Not certain on this but thought i had seen something saying as much.

If thats the case then youll need to reapply again before you actually move in. Unless you complete before that date but then if its not built i doubt youd get a mortgage approved.

Think youve jumped in with two feet on this one. I suspect the developers policies will be more flexible than a banks lending policices as such i would speak to the developer about when they realistically expect you to have a mortgage offer in place bearing in mind youll need to reapply for the mortgage again before the house is actually built.

Just seems really pointless (not to mention potentially detrimental to you) to suggest you apply for a mortgage knowing full well the offer will expire before you buy.

shankerrison

We did go through this with the developers and our adviser yesterday as this was one of our concerns. Once the exchange is complete in 4 weeks time ( if all goes to plan) we have 6 months which brings us to the end of August. States on our build paperwork that the house will be ready anytime between June-September ( they apparently have to give a 3 month window period). Our adviser mentioned we can have an extension with the lender if any issues arise and build takes us past the 6 months. So hopefully we should be covered, just need to get everything approved!! We do feel rushed with the whole process which i think is whats adding to my stress/ anxiety but they wouldn't reserve a plot without a dip and then agreement of the 4 week mortgage exchange... so here we are

csgohan4

Ensure your finances are stable as it is worrying your having money issues now and that's despite not having a mortgage.


Debt will hit your affordability and your risk to the lender.


Getting a broker is key, but I hope you have enough time to get the 4 weeks mark. Good luck

shankerrison

Hello,

Just to confirm we got approved no issues yeeeeeey, was two weeks from application to receipt of offer.