“The introduction of this new Instant Agreement (AIP) tool significantly reduces the amount of time a customer has to spend on a Halifax credit decision,” he said. A soft credit search is an “easier look” at your financial situation. This is the type of research that would be done regularly on price comparison sites. This would give you an indication of what products might be available to you. It can also be useful if someone wants to verify your identity. Some mortgage lenders do flexible research primarily. More and more lenders seem to be changing on this type of research. While the financial institution that conducts a flexible search receives less information about you than if it had conducted a difficult search, an agreement in principle from one of these lenders is usually still an extremely strong signal that your full application is accepted. You will be able to see that someone has done a gentle search on you when you check your credit file. But the good news is that this research is not visible to other financial institutions such as banks.
This means that you can apply for an agreement in principle for a mortgage without damaging your credit score. This is whether it succeeds or not. An agreement in principle means that a borrower has been accepted for a mortgage, but the final agreement depends on issues such as an evaluation report and job confirmation. According to the bank, information about stamp duty and legal fees is also posted to the client. Craig McKinlay, a mortgage manager in Halifax, said the change would benefit people who want to buy a home quickly. “The ability to finalize the app along the way on mobile phones and tablets helps our customers adapt the process to a hectic schedule. We are constantly looking for ways to serve our customers in the way they best meet their needs, and this new offering solidifies our reputation as a bank that gives our customers additional resources. Halifax says it has created the tool to ensure that customers understand how much they can borrow.
This would help their real estate search and allow them to act quickly if they find a suitable home. Instead, potential buyers must enter information about their living conditions, income and obligations before receiving a credit decision. The decision can be shared with family members or real estate agents. A difficult credit search is a careful review of your credit report. Any financial institution that runs one of these companies should get your permission. The advantage of “hard” research is that the lender looks at your situation very closely. If you pass the credit score, it is very likely that your application will ultimately be successful.