Approved in principle

[themalster]

Hi guys,

I have applied for a loan, and it has been "approved in principle". I understand that is based on the info I have provided and that further checks will be made.

But Nationwide have said that my application has been "approved in principle and the loan documents have been posted to sign and return along with any other information requested".

Is that normal? Why would they send documents for me to sign if they will do further checks anyway and the decision hasn't been made yet? I'm unsure what to make of this.

Any advice is appreciated.

[rojash]

Usually (when referring to house purchase) it means they have approved you as a borrower, but they need to approve the specific property on which they will be lending.

[themalster]

Thank you, rojash. It is a consolidation loan.

[factor-fiction]

Perhaps they have further checks to make but these may take a few days and from experience they know there is a good chance those checks will give a favourable result for you, so to speed up the process they send out the documents for signing while they do the final checks

[themalster]

Thanks factor30. Plan on doing that!