When to start full mortgage application process?

relax carry on

General query. I have approval in principal and have placed a tentative bid on a receiver sale subject to a visual survey by my engineer. Should I progress to the full approval process ASAP as I wish to get the agent to accept our bid and get the property off the market

cookiecakes

We applied for ours after we had paid our booking deposit and it took about 7 working days for the approval to come through.

relax carry on

cookiecakes wrote: »

We applied for ours after we had paid our booking deposit and it took about 7 working days for the approval to come through.

Cheers. Not at deposit stage yet but want to get there now. Can't think of a reason not to progress to the full approval at this stage. Even if eventually we are outbid, it costs us nothing I think.

D3PO

approval in principle isn't worth the paper its written on. So as not to waste your time and money its always advisable to have full approval.

sometimes like cookie cakes theres no issues, other times there are. There are plenty of posts on this forum of people whos AIP never turned into a loan offer.

Woodville56

relax carry on wrote: »

General query. I have approval in principal and have placed a tentative bid on a receiver sale subject to a visual survey by my engineer. Should I progress to the full approval process ASAP as I wish to get the agent to accept our bid and get the property off the market

You need to let your lender know that you have placed a bid. If the bid is successful,the lender will then request that you get a valuation using a valuer from the lender's panel of valuers. The lender will also request the name of your solicitor who will deal with the conveyancing for you. Once the lender gets the valuation report, they will then issue the Letter of Offer, all things being well. From experience, I would hold off on a visual survey and get a full structural survey when the vendor supplies your solicitor with the contract of sale so that any issues arising in the contract such as boundaries etc may be checked out by your surveyor at that stage . Of course, when making your firm offer to the Estate Agent you should specify that the offer is subject to satisfactory structural review .
Good luck with the bid etc !

relax carry on

Woodville56 wrote: »

You need to let your lender know that you have placed a bid. If the bid is successful,the lender will then request that you get a valuation using a valuer from the lender's panel of valuers. The lender will also request the name of your solicitor who will deal with the conveyancing for you. Once the lender gets the valuation report, they will then issue the Letter of Offer, all things being well. From experience, I would hold off on a visual survey and get a full structural survey when the vendor supplies your solicitor with the contract of sale so that any issues arising in the contract such as boundaries etc may be checked out by your surveyor at that stage . Of course, when making your firm offer to the Estate Agent you should specify that the offer is subject to satisfactory structural review .
Good luck with the bid etc !

Thanks. As the property is a bit beat up and it's a recover sale, I'm just going have the engineer do a walk through on the property so as not to waste our tome on this or build up false hopes. It's our first time at this so am trying to temper our excitement with a bit of reliable info on the property. If we get to the stage of a formal acceptance and deposit down the full structural survey will be carried out along with all the legal work.

relax carry on

D3PO wrote: »

approval in principle isn't worth the paper its written on. So as not to waste your time and money its always advisable to have full approval.

sometimes like cookie cakes theres no issues, other times there are. There are plenty of posts on this forum of people whos AIP never turned into a loan offer.

So there's no drawbacks, financial or otherwise to having full approval before going sale agreed on a property?

Woodville56

relax carry on wrote: »

So there's no drawbacks, financial or otherwise to having full approval before going sale agreed on a property?

I expect your lender/bank will require a valuation of the property ( which you will have to pay for ) by a valuer from their approved list, before they will issue you with a Letter of Offer / full mortgage approval , so I would suggest that you discuss your proposed bid with the lender to confirm what they require in order to give you full approval .

Bigcheeze

relax carry on wrote: »

So there's no drawbacks, financial or otherwise to having full approval before going sale agreed on a property?

If you need to up your bid you'll need to go back to the bank to get the approval upped.

I just waited until I was sale agreed. In the case of AIB they send a loan pack to your solicitor when they grant full approval. I didn't want that happening when I was waiting to go sale agreed.

miezekatze

We also waited until we went sale agreed before submitting the full application (were approved in principle before that). You will need to arrange a valuation survey for the bank before being able to submit the full application because you will need some details from that in order to be able to submit the application (though this might be different depending on which bank you're with) and you'll also need the details of your solicitor.

relax carry on

Thanks all. Just had meeting with bank this morning. We have one or two things to get them and they need to have their valuer look at it before we can fully submit but are pretty much there with the application. Just need a way to get the estate agent to accept our offer, take a deposit and take the property off the market so we can do all the formal work of ensuring all is order with the house.