Agreement I Principle

An agreement in principle (AIP) – also called a decision in principle (DIP) or mortgage in principle (PMI) – is a written estimate or statement from a lender to say how much money they would lend you if you bought real estate. You can complete the entire process online – it basicy only takes about 15 minutes to get a mortgage. Filling out the online forms with some lenders can even make you an immediate offer. It may take longer if you do it over the phone or in the store. If you have an agreement in principle and decide to make a full application to this lender, you must provide more detailed personal information. The lender is not required to lend you the full amount described in the AIP. International Mortgage Plans (IDPs) are able to establish a pre-approved mortgage agreement within 24/48 hours. There is no obligation to use these funds if applicants should find a better alternative, but it does mean that they have all the important papers to show to suppliers and/or agents. The Acceptance in Principle (DP) can be obtained by completing the attached application form, which is rather dissuasive. Fortunately, most pages can be ignored or left blank, and many questions bent on not applying the answer. PMI will review requests for potential anomalies and submit to the lender a tentative authorization that should not last more than 48 hours. In principle, a mortgage is not a formal mortgage offer, nor is it guaranteed that the lender will grant you a mortgage in the future. Once you have your agreement in principle, you can look at real estate that falls within your specific price range; That is, the amount you could borrow, plus every deposit you might have saved.

Typically, you get a mortgage online, over the phone or, if you apply to a bank or mortgage company, in the branch. We are increasingly finding that our expats are disadvantaged by the lack of evidence of available resources. We recently had a national barratts builder who effectively gassed one of our customers because they didn`t have a formal mortgage offer. This despite the fact that he had a very strong acceptance in principle by the lender. Other claimants were told that they had to have a piece of paper proving that they could afford it. It`s no wonder that real estate agents suffer from the public opprobrium they have! The goal of an AIP is to give you a clearer idea of what you can afford to borrow. This means you can browse real estate in your price range and finally make an offer for one! An Agreement-in-Principle (AIP) is a mortgage lender`s confirmation that they would offer you a mortgage based on the information they have seen, provided your circumstances do not change significantly…

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