An AIP mortgage typically takes up to 90 days and can help speed up the application process for a formal mortgage, as a lender can use the AIP to complete your application. Keep in mind that you don`t need to use the same lender that gave you the AIP when applying for a formal mortgage. Once you have your agreement in principle, you can see real estate within your specific price range; that is, the amount you could possibly borrow, plus each deposit you may have saved. If this is the case, you can talk to another lender in order to get a better offer and let the pre-agreed mortgage expire. To make sure you can borrow the amount you`ll probably need to buy a property, you can normally apply for a mortgage. We have looked at what you need to prepare for in order for you to reach your agreement in principle the first time. If you need some time to find a property that you want to buy, then you may find that interest rates have fallen from the time the mortgage was in principle settled. Even if it is not a full mortgage application, you must still provide information to obtain an agreement in principle. The amount they can borrow and the interest rate depend on a more detailed analysis of your finances. This implies that the lender is aware of the information you did not provide them for your AIP, which can also have an impact on what you can comfortably afford to borrow. You`ve got. B a new mission. Most lenders search for “hard” credit before offering you an agreement in principle that leaves traces in your credit file.
If you receive an agreement in principle, you can also choose the mortgage you want to apply for and continue your application online. 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. This means that if you have found the property you want to buy, have accepted the offer and want to start the process of buying the home, you must always apply for a full mortgage. If you applied for your AIP through a mortgage advisor, they should be able to use the information you provided them previously as part of the full application process, but they will want to check if they are still correct. For example, some lenders will only allow mortgages on a number of homes or dwellings in a new subdivision. Other examples could be those of an unusual building requiring complete renovation or where the property has increased risk factors, such as. B the risk of flooding or subsidence. Realtors will often want to make sure that you will be able to get a mortgage on a property before making an offer, so it may be helpful to have an agreement until that date.