Trying to go after hot property markets can be quite the experience. Just when you think that you’ve narrowed down the house that you really want, somebody else steps in to take your house. Repeat this a few times and you see why the UK real estate market is pretty frustrating. Sellers only want to deal with people that can put down earnest money and reflect their seriousness. However, if you are still mortgage shopping, you aren’t going to be able to do that…are you?
The truth is that you really can step up and get the house that you want quickly. It’s done through a mortgage in principle. If you’re not sure that that really means, this guide is totally for you. You see, the mortgage in principle basically signals to the seller that you really are serious in owning your own home. It shows that you have the financing to go with it at as well. You have to understand that from the perspective of the seller, not having financing in place hurts them. They are probably ready to leave their home and move on, only to find that they just can’t. They’re trapped in that home until it’s sold. If they entertained everyone that didn’t have their financing together, they would encounter a lot of “window shoppers” that have no desire to actually get their own home. It’s not something that you can’t really think about until you get a few other things in place. You just have to think about it from the right perspective. As long as you can connect the dots, then you’ll be good to go. On the other hand, of you’re really not ready to own your own place yet, then you’ll want to avoid wasting the seller’s time.
The mortgage in principle is actually a conditional proposition from the lender that gives you the loan you need. You will suddenly know exactly what you can afford, as well as that the lender is behind you in your decision to own a home.
This part hinges on you actually giving them the right information — you have to make sure that you do that before you really lose track of the game itself. If you miss a detail, the lender cannot give you the mortgage in principle at all. They have to make sure that you have all of your proverbial ducks in a row before they finance the cost of the home. Remember that it’s going to be their money upfront that secures the home. That’s a tall order to deal with, and you must take buying a home very seriously. Sure, you can move mortgages in the future if your credit and finances hold up, but you don’t want to automatically count on that. This is why it pays to know what type of mortgage situation you’re getting into.
Property markets come and go, and it can be hard to get into a neighborhood with good schools for your children. So if you’re really hot to get your hands on a property, you absolutely must make sure that you go with a mortgage in principle first. Good luck!