Even if your mortgage is accepted in principle, your full mortgage application could be rejected at a later date. For example, if the lender only performed a gentle credit check, it may not have seen it all in your credit file. Other information may be revealed when searching for a full mortgage application. You don`t need to go through the full application process to get an agreement in principle. This will come later if you have accepted an offer on a property. Keep in mind that if any of the details you enter, if they change in principle for the mortgage during the validity period (for example, they change jobs), you may need to check with your mortgage broker or lender to make sure that your mortgage is in principle still valid, and renew the application if necessary. Also known as a policy decision, dip brief, an agreement in principle is a credit/credit search for pre-approval of the mortgage, subject to the search for a property, the valuation of real estate and the provision of supporting documents such as pay slips to the lender. We recommend that people get an “AIP” before they find a property, as it highlights any problems for the client and consultant that were not known to have a low credit score or something in your credit file. It is usually best to get an agreement in principle before offering on a property to store unwanted surprises later. An agreement in principle costs nothing and does not require you to take out a mortgage with that particular lender or arrange a mortgage on us, but too many credit checks in a short period of time can have a negative effect on your overall ability to obtain credits, and any credit quality check will leave an imprint on your credit file. Once you have had a chat with one of our advisors to discuss the different types of mortgages and have reached an agreement in principle, you are ready to offer on the property you want to buy. Offering on a property you want to buy can be difficult. There is no specific science to get the best possible price, but always remember that it is difficult to negotiate down.
Don`t be fooled by offers “on and above” on a series of real estate details from a real estate agent. The agent works for the salesman, not for you. A decision in principle (DIP) is also referred to as an agreement in principle (AIP) by some mortgage lenders and real estate agents. In this article, we will explain the next steps as soon as we announce that you have been approved. At this point, we will have an idea of the other support documents that the lender will need and we will send them to the lender`s processing department, either by email or fax. It is important that you get this part correctly, as sending incorrect documentation or delays in sending it can cause long delays in processing your application. If you remortgaging, there is less need for this information, so you would file an agreement in principle once you have chosen a lender and a product.