Getting a mortgage – what to expect from the solicitor

SaraM50

I got an approval in principle for a mortgage going direct to the bank (no broker).
But now, the full loan offer isn’t happening- it’s getting stuck in the mud and the approval time is almost run out.

I have a solicitor lined up for conveyancing / routine property purchase stuff. Can one go to the solicitor in these situations for advice or help? Or is the solicitor there only for conveyancing?

Thanks

The_Conductor

You need to contact the lender- and keep on at them.
If there are conditions that you have to meet- you have to know what those conditions are- so you can address them.
You could get your solicitor involved- but if you do- be prepared for a nice bill from the solicitor. It really is something you can do yourself- it is not a legal thing- its complying with the terms and conditions the lender chooses to impose.

Btw- approval in principle- really doesn't mean an awful lot........

alibab

I am confused did you go trough the whole approval process etc and get official approval . As far as i know nothing to do with solicitor . I am with AIB and once i found house etc organised valuer and life insurance etc as per agreement terms the bank sent me out forms etc and forms for valuer

The_Conductor

alibab wrote: »

I am confused did you go trough the whole approval process etc and get official approval . As far as i know nothing to do with solicitor . I am with AIB and once i found house etc organised valuer and life insurance etc as per agreement terms the bank sent me out forms etc and forms for valuer

I think she only got approval in principle- this is done at a branch level- and doesn't involve the whole process- just some of the documentation- so I think she probably has an interesting amount of paperwork to track down- and/or explanations for anything unusual in their bank accounts.

She really needs to talk to the lender though- because we're only speculating here.

SaraM50

Conductor – agreed, approval in principle doesn’t mean allot – but I got the impression from the bank at the time that it did, and the rest was just dotting the i’s.
Out of interest, if the full loan doesn’t happen in the end, does it impact one’s loan ability in the future? You hear about banks sharing info on customers now, not just bad debts. I’m not sure how true this is.

The_Conductor

Unfortunately- you are going to have to contact the lender.
They will have a mortgage pack- it contains a list of documents they will require from you- alongside any queries they may have on previously supplied information. You need to keep in constant contact with them- possibly several times a week- chase down every little detail they are looking for- dot all the 'i's and cross all the 't's

Approval in principle- is fine- but you are back at the starting line from an application perspective- you need to chase this- it will take time effort and energy- but its what you need to do.

Unfortunately- the person who allowed you go away with the assumption that 'approval in principle' was a 'sure thing' wasn't doing their job properly.

Any loan you apply for- is registered with the credit checking agencies- so, if the current application falls through- it will be on your record- however, in the absence of anything other than the application being recorded- it will hardly even be looked at by an alternate lender.

Eldarion

I really wish they'd do away with "Approval in Principle". It's a publicly misleading scam and does nothing but drive house prices up unnaturally. You have people bidding with "approved" figures that they will more than likely never receive.

Apologies, not directed at you at all OP. If you had gone through a broker they would have gone for the real approval as the first step.

In this case with the real approval, I wouldn't worry about it affecting your credit rating if it's declined unless you have a long history of applying for and being denied loans.