Mortgage In Principle:Oh yes, they've committed mortal home-buying sin number one: “thou shalt not go looking for a home until you have a mortgage in principle” -because you will fall in love with something.you may not be able to purchase
Mortgage In Principle: Get a mortgage in principle before looking at properties so you know that when you do look at a property you know that you could buy it.
What is a mortgage in principle?
If you get a mortgage in principle before you start looking for a house, it will speed up the process a lot. From the information you provide (earnings etc) the lender will make you the offer of a mortgage in principle – it is only when you are applying for the actual mortgage that you will need to provide proof of earnings and other necessary documentation. These days most mortgage lenders can agree a mortgage in principle over the phone.
Sometimes a mortgage in principle is based on income and outgoings, some do certain checks first but it will still go to an underwriter for further checks. “when prospective buyers are granted a mortgage in principle they are then faced with further difficulties in actually getting the banks to release the funds,”
If you can arrange a mortgage in principle before you start looking for a house, it will give you the advantage over the competition because you already have the mortgage organised.
You should only apply for a mortgage in principle with the mortgage provider you intend to proceed with.
Reference URLs mortgage principle