When Do You Need an Agreement in Principle
Publicado el 14/2/2022
When you`re in the process of applying for a mortgage, you may come across the term “Agreement in Principle” or “AIP.” If you`re unfamiliar with what this means, don`t worry. In this article, we`ll discuss when you need an Agreement in Principle, what it is, and how it can help you secure a mortgage.
What is an Agreement in Principle?
An Agreement in Principle, also known as a Decision in Principle or Mortgage Promise, is a document that demonstrates to a lender that you have a reasonable chance of obtaining a mortgage. It`s not a formal mortgage offer, but rather an indication that you meet the lender`s basic criteria for borrowing.
When do you need an Agreement in Principle?
You might be wondering when you need an AIP. In general, you`ll need an Agreement in Principle if you`re looking to buy a property or remortgage. Having an AIP can make the process of applying for a mortgage smoother and more efficient.
An AIP is particularly useful if you`re house hunting because it lets estate agents and sellers know that you`re a serious buyer who has taken steps towards securing a mortgage. It can give you an advantage over other potential buyers who haven`t obtained an AIP. This is especially true in competitive markets where properties receive multiple offers.
Additionally, if you`re looking to remortgage, an AIP can be helpful in showing lenders that you`ve considered your options and are serious about refinancing. This can make it easier for lenders to consider you for more favorable rates and terms.
How to get an Agreement in Principle?
Getting an AIP is a fairly straightforward process. You can apply for one online, over the phone, or in person with a lender or mortgage broker. The lender or broker will ask you to provide basic information about yourself, including your income, expenses, and credit history. Based on this information, they`ll provide you with an estimate of how much you can borrow.
It`s important to remember that an AIP is not a guarantee that you`ll receive a mortgage. You`ll still need to go through the full mortgage application process, which includes providing more detailed information about your finances and the property you`re looking to purchase.
In conclusion, an Agreement in Principle is a useful tool for anyone looking to buy a property or remortgage. It can help you stand out as a serious buyer and make the mortgage application process smoother and more efficient. If you`re considering applying for a mortgage, obtaining an AIP should be one of your first steps.
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Organización de Hipertensión Pulmonar Chile.
Presidente de la Organización:
Sr. Carlos Zamora
e-mail: contacto@hipertensionpulmonar.cl
celular: 9-3432940
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