Possibly obvious question but I dont know the answer...

jamtart6

...is it necessary/better to have your mortgage in principle before you make an offer or can you make an offer without having a mortgage in principle?

also are the offers that jones and chapman do you get your mortgage through them and get given a card which makes you as good as cash buyer any good?? i havent looked into it properly and wont be sucked into it by any means, but just wondered if they were worth it or another con??

sorry to be so thick!!! I'm a FTB

Badger_Lady

You can make an offer in any circumstance, but having finances in place can put you in a better bargaining position - the seller is more likely to accept a low offer from a buyer who can definitely afford his property!

I don't know anything about the Jones & Chapman deal, but the experts will be along in a minute...

jamtart6

thanks BL! i'd be interested in the opinion of others too...

herbiesjp

Although they are not really worth the paper they are written, they can help avoid any "nasty surprises" as has happened in the past.

SOme clients have gone to apply for mortgages, only to be declined. They then get a copy of their credit files and find entries on there that "jog their memories" of past credit problems

Some lenders will give you a maximum mortgage amount, so at least that way, you know what kind of buying power you have with that lender.

I would agree and say that knowing you can get a mortgage in the first place would be a good starting point, and then you can feel more confident when putting in offers on properties.

Ian_Griffiths_Halifax

I assume Jones and Chapman are either an Estate Agent or a Broker. If that's the case, then they may have got a Decision in Principle for you from a lender, but have given you their 'Good for Credit Card' to boost their ego.

It means nothing.

You need a Decision in Principle from a Lender to have any credibility when putting in an offer to an Estate Agent and they will still try and get your to see their Mortgage Adviser on the pretence that it is to 'Check you are in a position to buy'.

Get a DIP first, then get the house to fit the amount you can borrow or less. It's better going shopping knowing what your budget is, rather than finding the house of your dreams, having your offer accepted, then being turned down for that loan amount.