An agreement in principle (AiP) is not essential but can help to speed up the process of buying a home. Sometimes known as a decision in principle (DiP) or mortgage promise, an AiP is an official document from a mortgage lender that shows (in theory) how much you can afford to borrow and can help you calculate mortgage affordability.
There are two main benefits of an agreement
in principle:
- It helps you
understand your purchasing power and price range
- It shows estate agents and sellers that you are a
serious buyer
It can be particularly useful if you are a
first-time buyer or have a history of bad credit, as it will allow you to look
for your next home with the confidence that it will be approved for a mortgage.
While an agreement in principle does not
guarantee your mortgage application will be approved, provided the information
you give is correct and your circumstances don’t change, the actual application
process should be quick and easy.
My Mortgage Maker is a mortgage broker in Bristol. We can help you work out your borrowing
power and secure an agreement in principle to get you started on your journey
to home ownership.
To discuss how we can help you get on the
first rung of the housing ladder, call today at 01225 962 532 or enquire
online.
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