Agreement In Principle What Is It

A policy decision shows that one can theoretically afford to buy a property. This could make you a more attractive buyer and set you apart from other potential buyers. You want an AIP and you wonder what`s going to follow? The first step is to talk to one of our advisors, where we will know you and your situation. Take a look to see what you need for a mortgage and what awaits you to be ready. An agreement in principle usually doesn`t take as long and our consultants will always try to get back to you within 24 hours with an update on your AIP. If you have an agreement in principle and decide to make a full application with that lender, you must provide more detailed personal data. The lender is not required to lend you the full amount indicated in the AIP. If you have had credit problems in the past or have a limited credit history and are not sure what a bank or construction credit union might lend you, an agreement in principle could give you extra security from your credit perspective. Once you have your agreement in principle, you can see real estate within your specific price range; that is, the amount you could possibly borrow, plus each deposit you may have saved. To reach an agreement in principle, you must contact a mortgage lender directly or through a mortgage broker. A lender or mortgage advisor will go through you situation and take some details from you to see what you can afford, they will then use an AIP that describes how much you are able to borrow, which means you can start looking for your next home. A mortgage is not in principle a formal mortgage offer, nor is it a guarantee that the lender will give you a mortgage in the future. You don`t need to get an agreement in principle, but it can sometimes help if you`re very handsome (see “How an AIP Can Help,” below).

The amount they can borrow and the interest rate depend on a more detailed analysis of your finances. Even if it is not a full mortgage application, you must still provide information to obtain an agreement in principle. If you have an interest in talking to an advisor or getting an agreement in principle, then speak to one of our mortgage advisors on 0117 2050240. Realtors will often want to make sure that you will be able to get a mortgage on a property before making an offer, so it may be helpful to have an agreement before that date.