mortgage in principle - what does this mean???

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help! I feel clueless...we have gone through a mortgage broker who did various twiddly bits on the computer and got us a mortgage agreed in principle. Feel stupid because I came out all pleased withthis, but now realise I didn't ask all the questions I meant to, mainly wanting to know if this means the mortgge company have credit checked us? Or does this come further down the line?

I'm a tad paranoid as concerned that our last mortgage company may have buggered things up for us, they stopped the direct debit when our solicitor requested the deeds during our house sale last year (without telling us!) so were a week or so late paying one month's mortgage. I know it's not a dreadful credit history! But I love this house so much I am getting myself in a twist that somewhere dwon the line the company will say "NO!"

help!!??!!

I think it means the mortgage is approved subject to credit check and salary check.

Once you have decided on the mortgage you require , it's often worth obtaining a mortgage agreement in principle certificate. This is a certificate from a lender showing how much it is willing to lend you in principle. Mortgage certificates are often called different things, such as a mortgage promise or an agreement in principle but they mean the same thing. The advantage of obtaining a mortgage certificate is that it demonstrates to a seller that you are a serious buyer and that a lender has agreed in principle to lend you enough money to purchase the property. It is worth noting that a mortgage certificate is not a guarantee that the lender will give you the money for the property you want to buy. Whether it agrees firmly to lend you the money will depend on the exact details of the property, the accuracy of the information you have supplied about yourself, and the outcome of credit checks. To apply for a mortgage certificate, you will need to complete a form and may need to give details of your employment, income and financial commitments. The lender might want to run credit checks on you at this stage to make sure you are a reliable person to lend money to. The lender can then use this information to tell you how much it's prepared to lend you in principle

HTH

oh, ok thanks guys that does explain things! I think I am being a leeeeetle paranoid about our credit check, as we've never had a real period of arrears or anything! It's just that I really want the house and seem to be inventing things to wrry about!