Mortgage=decision in principle

[emzky90]

Hi girlies just wondering we've had a decision in principle through so when we apply for a mortgage does that mean we've pretty much got it?

 

[tallybee]

It means that they would be willing to lend you that amount based on all the circumstances you have told them (ie income, price of property.....) they'll have done credit checks and all. It shows sellers that you have the means to buy. A property would still need to be approved (surveyed)

So yea unless something changes or the house turns out to be a complete lemon it means you will be able to get that mortgage

 

[Red Rose]

We got a decision in principle instantly from HSBC earlier this year. From what I believe, they are one of the few banks that offer these very leniently based on a few assessment questions which nerved us a lot as we had to send proof of the decision in principle in order for us to put a formal offer in for a house.

We then had to submit an application which was a lot more in-depth and the final decision was made my a mortgage underwriter which we passed.

Think it depends on the bank as to how certain a decision in principle actually is.

 

[cupcakekate]

pretty much hun as long as long as circumstances don't change xx

 

[Mummy Bean]

Not ness a decision in principle is just to give u a rough indication that they will lend u the money based on the most basic principle of loan to value and multipules of ur income.

To get the final approval they will need to do a credit search on u..so probs may come back on this, also u need to get the house valued/surveryed so stuff might be wrong there.

Also the approved in principle is given by ppl in branch where the actual mortgage has to be approved by underwritters who have the power to change there mind.

But it is a good indication that they will give u a mortgage...but do not see it as certain.