how long does loan approval in principle last?

R

réaltín09

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got approved in principal a week ago and am now under pressure from my broker to find a property quickly. I have been actively looking but have yet to find the perfect house...

any advice?
 
Re: how long does loan approval in principal last?

I got approval in January 2009. Legal side still being sorted.

Approval ran out in August and I had to reapply.

I'm ready to go again.

Advice ..... don't be rushed by broker .... let them wait for their commission!
 
Re: how long does loan approval in principal last?

My broker told me it can last up to 6/7 months if that helps?

Incidentally, I felt he was rushing us as we had not seen a property we wanted to put an offer on and are waiting till this budget in December even if we do find one. Was very clear about this and still felt he was rushing us.

Be strong!

Alli
 
We went direct to the banks ourselves earlier this year for AIP. Our approval in principle from BOI was for 3 months (then we'd need updated payslips and bank statements to renew it). They said it used to be longer, but nowadays they like to revisit things more often. Halifax mentioned 6 months I think, so it varies from place to place.
Whichever bank your approval is with, just ring their head mortgage office and ask them how long it lasts.
Just because you go through a broker does not mean you can't ask the Bank questions directly. If the approval runs out, you can just resupply the few updated documents.
Make sure and keep any bank statements, payslips etc that arrive from now on in a separate envelope somewhere safe.
The broker doesn't get his money until you draw down the mortgage so that's why he's applying pressure. His problem, not yours.
 
AIPs last for between 1 and 6 months depending on the lender, simply ask your broker for a copy of the AIP. It will state the expiry date on it.

The broker may be putting pressure on you for two reasons

1) He wants his commission once you complete the purchase

OR

2) He knows how difficult it can be to get an AIP reapproved these days, lending criteria changes on a weekly basis so the fact you were approved 3 months ago does not automatically mean you will be reapproved tomorrow. The biggest difficulty is getting the same amount out of the bank, you may be reapproved but for a lesser amount (not much good if you go sale agreed based on the original AIP)

If the OP is sure there is no issue on affordability then the broker is chasing commission so just ignore the pressure, if quite tight on affordability then take heed of what the broker is saying. If you don't know then ask the broker why he is putting so much pressure on.

To be honest, unless the AIP lasts for just one month then the broker should not really be pestering you after just one week.

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