What’s next after a Decision In Principle (DIP)?

A Decision In Principle (DIP) is also referred to by some Mortgage lenders and estate agents as an Agreement in Principle (AIP). In this article, we are going to explain the next steps once we have communicated that you have been approved.

1. Documentation

   Original documentation will be gathered, reviewed and certified.

2. Further Checks

   Affordability and will be checked once again.
   Lending criteria and market position research will be rerun.

3. Conveyancer instruction

   Solicitors will be instructed if you chose to use our recommended firm.

4. Survey

   Client Valuation choice will be confirmed – watch a Video on this point

5. Payment details if needed

   Credit/ Debit card details will be taken to pay for any upfront Lender Charges, such as application or survey fees.

6. Identity Verification

   If we have not met you a video call will be conducted. This is typically undertaken by Skype, Facetime or Whatsapp. This is to check your Identity this can be done at a convenient time.

7. Full Mortgage Application Submitted to the Lender

   This is so the case can be reviewed by an Underwriter. An additional credit check agency may be used to ensure consistency with the initial one undertaken at DIP. You are likely to be checked against a Sanction list for politically exposed persons. Internet searches may also be carried out on your Employer to establish size and standing. If you are self-employed the information held at Companies House will be reviewed.

8. Application Documentation Supplied and Points Clarified
   (Normally in the first 5 days of the application being submitted)

   The Underwriter will request documents and questions to support the information presented in the application form. For example, if you have said you earn £35,000 the may ask for payslips to support the claim. A typical question might be “you are on maternity leave, when do you plan to return to work?” Most of this information will have been gathered by us prior to submission and we will only trouble you for anything that has not been covered previously. 

9. Support Documentation for the Solicitors

   If you have opted to use or recommended Solicitors for the legal conveyancing we will provide them with certified ID and proof of address documents.

10. Lenders Survey process

    In nearly all cases the Mortgage Lender will instruct a Surveyor to view and appraise a property. They will want to make sure it is fit to secure a mortgage against. They will also comment on the value and in the case of a buy-to-let the likely rental income to expect.
    
    Some Mortgage Lenders will instruct this surveyor on receipt of the application form and others after the case has been reviewed.
    
    Once instructed a surveyor normally will be in touch with the person
    you have given for access to the property. In the case of a remortgage it’s normally you and on purchases the selling agent.
    
    After the Surveyor has visited in normally takes 24 to 48 hours for the report to be written up and returned to by the Mortgage Lender. It will then join their pipeline queue for documents to be reviewed.
    
    In a few instances where the report is unclear the Mortgage Lender will contact the Surveyor to clarify the information. The Surveyor may recommend that additional research is carried out to make sure the property is fine, for example, they may request a “timber and damp report”.

11. Final Lenders checks

    Once Mortgage Underwriter has everything they need to make a decision, and the outcome is positive, they will make you a formal offer to lend. If the Mortgage request is tricky or of high value then a Senior Underwriter may be used for the second opinion.

12. Mortgage Offer

    This is a legal document produced by the Mortgage Lender. We will receive the basic version and email it to you. The Solicitor will receive an enhanced in the post (normally 3 to 5 working days after) with the Conditions to be satisfied.  You may receive a copy of the valuation but Mortgage Lenders do NOT always release this to you as it really for their purposes only.

13. Legal Process

    From here on in the Solicitor will be your main point of contact until Completion i.e. before the mortgage funds are released.

14. Insurances

    Life cover should be placed “on risk” by the exchange in the place of purchase, and on remortgages by Completion.
    
    If building insurance is your responsibility this will need to be agreed and placed “on risk” by Completion. You should note the new lender’s interest in the policy.
    
    If you need us to make recommendations please let us know and we will be happy to help.

15. Completion

    In the case of purchase, you are ready to move in. For remortgages, your lender will be changed over and funds released.

16. Registering the Title

    Your Solicitor will update the Land Registry on the ownership and interested parties.