Do lenders like to lend up to the maximum amount on the DIP?

AndyDufresne

This might sound like a stupid question, but I was wondering if lenders 'like' to lend up to the very maximum amount stated on the DIP? Obviously there are other factors besides income that determine the affordability, but assume that the DIP figure is used to budget for a property.

If I'm on a salary about 30k, with a deposit of about 20k, that should make my maximum budget around 155k. If I wanted to purchase a property for exactly 155k, would the lender be happy to do this? Obviously there are legal/survey fees as well (saved separate from the deposit in this example), which I would have non-borrowed funds for in the bank.

The reason I thought lenders might not like doing this is that I'd have thought this might incur more risk for the lender if they were to lend the very maximum, since the vendor might suddenly increase their price, receive a higher offer from someone else, etc.

Also, I'd have thought that the final maximum amount that could be borrowed could reduce, once the full mortgage application is made after the DIP.  

K_S

@AndyDufresne

If the DIP was accurately keyed in (with respect to the numbers and the lender criteria), and the lender policy and affordability calculator hasn't changed in the period between the DIP and full application, there's no real reason for the maximum borrowing figure to be adjusted downwards at full application (FMA).

Outside the above, there are a few less common reasons as well, such as errors on the lender system (where the affordability calc at DIP stage isn't in sync with that at FMA), or the underwriter remodels affordability due to things that they aren't comfortable with matters that come up at manual review, etc.

ACG

Some lenders may score your application more leniently if you are not lending the absolute maximum. But I could not say that for definite. 

If you have passed the DIP then it should be fine.