You will get a mortgage agreement in principle that gives you an idea of the price range you should consider when looking for a loan.This can help you negotiate better – most vendors will accept your offer more than someone who has not decided in principle.This gives vendors and agents confidence that you are credible and can obtain the financing to purchase the property. You already know that you can borrow money to purchase the item.Why should you get an agreement in principle (AIP)?Īn agreement, in principle, is a good idea before you purchase a property you can get from your bank or building society. If required, your advisor can send a copy of the mortgage in principle to you and your estate agent. However, once the AIP has been provided to you, it confirms that they are happy to lend you the money (provided the information you have given is correct).Īgents might request proof of the principle mortgage to prove that you are serious about purchasing a property. It is also known as a mortgage promise.Įvery application is subject to the status of the lender and their lending criteria. You can also refer to it as a decision-in-principle (DIP) or approval in principle. It can also include your credit check score. This could include your income and outgoings. We have access to over 200 lenders in the UK to get you the best rates Get your Quote What is a mortgage in principle agreement?Īn agreement in principle refers to a tentative agreement that a mortgage provider makes to lend you money based on an initial assessment of your circumstances.
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