Sunday, September 11, 2022

What Are the Benefits of an Agreement in Principle?

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:

  1. It helps you understand your purchasing power and price range
  2. 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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