Whether the maximum amount you can afford is visible to the real estate agent depends on the type of mortgage that was issued to you in principle. This could affect your credit quality if you ask for more in a short period of time. Fortunately, some lenders will use a “soft credit check” for IPAs that leaves no footprint. Just ask your selected lender about the approach it is using. For more information or to obtain a mortgage in principle, contact John Charcol on 03304 332 927. The important thing is that not all mortgages are equal in principle. So be warned and they can give you a misguided sense of security. Make sure you understand the extent of the validation using the lender`s instruction policy and that it includes a credit search. You may be rejected if you apply for a mortgage in principle, which can affect your creditworthiness. A mortgage in principle is an official estimate of how much you can afford to borrow on a mortgage. This can be a very useful thing if you are looking for a first home (or a second lot) because it shows the realtor that you are a serious buyer and that any offer you make is realistic. For more information about a mortgage in principle or to talk to an expert about a step in the mortgage process, please call 03304 332 927 or apply.
A mortgage can normally last between 60 and 90 days, depending on the lender. If you have not found a property or accepted an offer during this period, you may need to receive another one. Renewal should be easy, unless your circumstances (or economy) have changed significantly. You may be wondering why, in principle, you could first commit to a mortgage instead of just asking for a real mortgage. The simple answer is that it`s faster and less effort to get a mortgage in principle. You can often get a sort in less than an hour if there is no problem, and at most it should only take a few days. This frees you up to go home hunting in seriously, so you are able to make a fixed offer for a home that you make like the look of.