Why should you get a decision in principle before viewing a property?

Buying a house whether it is for the first time or to move home, is an exciting prospect. When you walk into the house you know is “the one” you want to make yourself as appealing to the seller as possible, especially where there are other possible interested parties viewing. By having a decision in principle with a lender, shows the estate agent and the vendor you are serious about the purchase. There may be other offers on the table, but if these people have not sorted out their finances, this could certainly appeal to the vendor. 

 

The other problem with not having your finances sorted before viewing properties is you may not know how much you can afford. Using online mortgage tools can give you a rough estimate of how much can be borrowed but it doesn’t look at your personal circumstances. You may have some adverse credit, you may have outgoings such as child maintenance that it doesn’t ask for on the affordability calculator but will be asked for at mortgage application, you may be looking at a property that that lender would not accept because of location. All of these factors can affect the interest rate and lender you are applicable for. By having a decision in principle in place, you can get agreement from the lender, subject to valuation and underwriting, of what they will lend you. You can also see what your mortgage monthly payments will look like helping you make the decision of how much you can offer as a maximum for the property. 

 

A decision in principle is your golden ticket. This will help support your case with the seller that you are a serious buyer, you have done your due diligence and because of these reasons you are a great candidate to sell the property to. 

 

At HD Consultants we do not charge for a decision in principle. We will run through the mortgage process with you at our initial meeting, gather information and documents from you and present you with some options for mortgages. Providing you are happy to proceed we can then get your decision in principle ready for you to present to your estate agents ready for your viewings. 

 

Victoria Bennett