{"id":2040,"date":"2021-02-17T08:59:30","date_gmt":"2021-02-17T08:59:30","guid":{"rendered":"https:\/\/www.yopa.co.uk\/homeowners-hub\/?p=2040"},"modified":"2021-02-17T08:59:31","modified_gmt":"2021-02-17T08:59:31","slug":"what-happens-after-you-get-a-mortgage-agreement-in-principle","status":"publish","type":"post","link":"https:\/\/dy36-2.stage.yopa-dev.co.uk\/homeowners-hub\/what-happens-after-you-get-a-mortgage-agreement-in-principle\/","title":{"rendered":"What happens after you get a mortgage agreement in principle?"},"content":{"rendered":"\n

As the name suggests, your mortgage in principle is a\ndocument from your chosen mortgage lender which states that, subject to your\napplication being successful, they would be happy to lend you the amount of\nmoney you have requested. You will often be required to present a mortgage in\nprinciple once you have made an offer on a new house before your vendor agrees to\nremove the house from the market. <\/p>\n\n\n\n

But what happens after you receive your mortgage in\nprinciple? And can you still be turned down for a mortgage even if a lender has\nagreed to the mortgage in principle? Read on to find the answers to these\nquestions and more about the journey to buying your dream home! <\/p>\n\n\n\n

Will I definitely receive a mortgage offer if I receive a\nmortgage in principle? <\/strong><\/h3>\n\n\n\n

One of the most important things to mention straight off the\nbat is that just because you have secured a mortgage agreement in principle,\nthis doesn’t mean that you are guaranteed to be accepted for a mortgage.<\/p>\n\n\n\n

The lender will not complete an exhaustive checklist before\nagreeing a mortgage in principle, and if they have only completed a soft credit\ncheck initially, they may not have assessed your full credit history. However,\nthey will do this when they come to do the hard credit check for your full\nmortgage application. It is in your interest not to have too many hard credit\nchecks undertaken, as this can actually have a negative effect on your credit\nscore. This, plus the speedier turnaround, is why it is useful to apply for a\nmortgage in principle rather than just go straight for the full mortgage\napplication. <\/p>\n\n\n\n

After they have undertaken the mortgage valuation survey or\nseen the results of your chartered surveyor\u2019s\nreport<\/a>, a mortgage lender can also refuse to offer you the full\namount you have requested to borrow if they feel that the property you wish to\nbuy is not worth the money that you are planning to pay for it. In which case, you\nwould need to increase the amount you pay for your deposit to offset the\nsmaller mortgage loan.   <\/p>\n\n\n\n

What are the next steps? <\/strong><\/h3>\n\n\n\n

Once you have had your offer accepted on a property and your\nmortgage in principle is in place, the next steps to gaining your mortgage and\ncompleting the sale on your new property are as follows. <\/p>\n\n\n\n

Your mortgage in principle will only remain valid for around\n6-9 months, depending on the lender, so it is best to only request a decision in principle if\nyou are seriously considering making an offer on a property. When you start\nyour initial property search, a mortgage calculator<\/a> and broker will give you a good\nindication of the amount of money you are likely to be able to borrow and the\nbest type of mortgage to choose.<\/p>\n\n\n

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\n Instant online valuation<\/span> <\/div>\n
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Get a rough estimate of your home's value now.<\/p> <\/div>\n <\/div>\n<\/div>\n <\/a>\n <\/div>\n

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\n Face-to-face valuation<\/span> <\/div>\n
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Book an appointment with your local Yopa agent.<\/p> <\/div>\n <\/div>\n<\/div>\n <\/a>\n <\/div>\n<\/div>\n\n\n\n\n

Next steps for buying a house:<\/strong><\/h3>\n\n\n\n