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. The amount they can borrow and the interest rate depend on a more detailed analysis of your finances. One thing you should note is that consulting an AIP could cause you credit defaults. To finalize the AIP, a credit quality check must be carried out. When a “hard check” is executed, a “fingerprint” remains on your credit report. This means that if you request multiple IPAs in a short period of time, this could have a negative impact on their credit rating. However, some lenders and consultants will use a soft credit check, so it is important to know which one is taking place. To reach an agreement in principle, you must contact a mortgage lender directly or through a mortgage broker. The lender will carefully review your financial history, including bank statements, salaries and any additional income, employment history and address, how much deposit you have, and all other savings. This is called accessibility control. The size of your contract can in principle be a useful indicator of how much you can borrow. You can use it to search for real estate in your price range.
A lender or mortgage advisor will go through you situation and take some details from you to see what you can afford, they will then use an AIP that describes how much you are able to borrow, which means you can start looking for your next home. In principle, you will receive a mortgage online, over the phone or, if you apply from a bank or real estate credit company, in a branch. An agreement in principle (AIP) – also called Mortgage In Principle (PMI) decision – is a written estimate or statement from a lender to say how much money it would lend you if you bought a property. Even if it is not a full mortgage application, you must still provide information to obtain an agreement in principle. A policy agreement (AIP) is provided by your selected mortgage lender to show that it can in principle give you a mortgage up to a certain amount.