Can I Get an Agreement in Principle before Viewing Houses
If you`re looking to buy a property, you may be wondering if you can get an agreement in principle before viewing houses. The answer is yes, and it`s actually a good idea to do so.
An agreement in principle (AIP), also known as a mortgage in principle, is a statement from a lender indicating how much they`re willing to lend you based on your financial information. It`s not a guarantee that you`ll be approved for a mortgage, but it`s a good indication of how much you can afford to borrow.
Getting an AIP before viewing houses can be beneficial for a few reasons. Firstly, it can help you narrow down your search. Knowing how much you can afford to borrow can help you focus on properties that are within your budget. This can save you time and energy, as you won`t waste time looking at properties that are out of your price range.
Secondly, having an AIP can give you a competitive edge when it comes to making an offer on a property. A seller is more likely to take your offer seriously if they know you have a mortgage in principle, as it indicates that you`re serious about buying and have taken steps to secure funding.
To get an AIP, you`ll need to provide some basic financial information to a lender, such as your income, employment status, and any debts you have. You can do this online or over the phone, and the process is usually quick and straightforward.
It`s worth noting that an AIP is not a formal mortgage offer, and you`ll still need to go through the full application process once you`ve found a property you want to buy. However, having an AIP can help speed up the process and give you peace of mind that you`re likely to be approved for a mortgage.
In summary, getting an agreement in principle before viewing houses is a good idea. It can help you focus on properties that are within your budget, give you a competitive edge when making an offer, and provide peace of mind that you`re likely to be approved for a mortgage. So, if you`re thinking of buying a property, consider getting an AIP first.