A fundamental decision is not a guarantee. As you go through the entire application process, the lender will take a closer look at your income and credit history. You may decide not to lend yourself loans at this point. For example, some lenders only approve mortgages on a certain number of homes or apartments in a particular new construction development. Other examples could be if it is an unusual building in need of major renovations, or if the property had increased risk factors, for example. B susceptibility to flooding or subsidence. You will then be offered a mortgage based on what the lender believes you can afford. This may be more or less than you originally expected. When you apply for an LEA, the lender will review your loan file to determine if you are eligible to borrow from them and if they are happy to lend the amount you need. Please click below on a recent article I wrote about the documents needed for a mortgage application. Although this is very comprehensive and focused specifically on mortgage applications. This will give you a good idea of what is actually needed for the whole process, and it certainly won`t hurt you to collect this documentation in a timely manner.
A PSA is not the same as an official mortgage offer, so you should always apply for a mortgage once you have accepted an offer for a property. It is important to remember that an agreement is not, in principle, a mortgage offer or an official confirmation that you have a mortgage. To get this, you need to go through the entire application process. At this point, you can easily provide the information on your own without any supporting documents. But you`ll need it when you submit your full mortgage application. This means that the lender becomes aware of information that you did not provide to them for your AIP, which can also affect what you can comfortably afford to borrow. For example, you started a new job. An AIP does not guarantee your loan because it is not a mortgage offer.
And if the lender finds something you haven`t mentioned yet that negatively affects your ability to get a mortgage, they might change their mind as to whether they`ll lend to you, how much they`d lend, and what the interest rate will be. .