A Mortgage Agreement in Principle is what you are given once you pass the Lenders credit score to qualify for a Mortgage. Often shortened to AIP, this allows you to make an offer on a property you like. It’s can also be helpful when negotiating on house prices, as it shows the seller you’re serious about your offer and are prepared as a First-Time Buyer in Lincoln.
This is dependant on whether the lender decides to use a Hard Credit Search or a Soft Credit Search. Below are the differences between the two;
Hard Searches go more in-depth than Soft Searches. The main difference is that Hard Searches are likely to affect your Credit Score. If you have a good Credit Score however, you don’t need to worry going into this as a First-Time Buyer in Lincoln.
The more likely option these days is that a Lender will carry out Soft Searches. These usually needing less information and in most cases leave your Credit Score unaffected.
Although they can be a game-changer, a mortgage isn’t always guaranteed. The lender will need you to provide them with documents in order for the Underwriter to make a final decision.
There is often small print included on Agreements in Principle that may easily be missed. When customers reach out for assistance with their Agreement In Principle, at times we have found they’ve been turned away at full mortgage application stage.
The documents you will be required to provide can include; Identification, Payslips, Bank Statements and more. As your Mortgage Broker in Lincoln, we take pride in helping our customers, whether they are Moving Home in Lincoln or Self-Employed in Lincoln.
You may be able to get away with this, however, most estate agents will want evidence that you are able to proceed.
AIP’s usually need renewing after around 30-90 days, although this isn’t a worry. The main reason we recommend getting one so early is to avoid being told your dream home is no longer available for purchase.
Getting your Agreement in Principle sorted also means you don’t always need to buy the first house you see. It’s a simple process, so if it expires you can easily get another.