A Mortgage Agreement in Principle (AIP) serves as confirmation that you have a preliminary mortgage arrangement. This document demonstrates to the Estate Agent that you’ve met the lender’s credit score, indicating your creditworthiness.
It’s important to note that an AIP doesn’t guarantee final mortgage approval, as a comprehensive application process involving additional checks will be needed.
In Middlesbrough, securing a Mortgage Agreement in Principle (AIP) can prove instrumental in negotiating an asking price. An AIP serves as a document verifying your existing mortgage arrangement. We make sure to obtain this for all our clients, and most lenders offer this service.
It’s important to note that while an AIP is not a definitive assurance of mortgage approval, it’s a key step. Your complete application will necessitate additional background checks, including income verification, and an assessment of the property’s value.
Obtaining an AIP early on offers several advantages:
Obtaining a Mortgage Agreement in Principle offers more than just a preliminary mortgage arrangement. It can empower you during negotiations, prevent unnecessary disappointments, and provide a clearer perspective on your budget constraints.
When you’re prepared to submit an offer for a new home, most Estate Agents will conduct due diligence by requesting evidence of your available funds for the purchase.
This typically involves providing bank statements and an Agreement in Principle certificate, which we can help you in obtaining. Once you’ve supplied these documents, the Estate Agent usually halts property marketing and displays a “Sold” or “Sale Agreed” sign.
Presenting an already-agreed Mortgage adds to your appeal as a buyer. It demonstrates that your offer isn’t impulsive; you’ve considered how to finance the purchase and taken action.
This can make you a more attractive prospect to sellers and potentially lead them to accept an offer below the asking price on their property.
When it comes to purchasing a house, some clients have often rushed ahead without the proper groundwork.
First time buyers in Middlesbrough sometimes jump into making an offer on a property without ensuring they can actually proceed. This approach can lead to significant disappointment if their mortgage application gets declined.
By the time this happens, they’ve usually become quite attached to the idea of their new family home. However, such heartache can be avoided by reaching out to us at an earlier stage. Sometimes, the issues causing a mortgage application to falter can be resolved with a bit of time.
For instance, there might be a minor problem on your credit report, like a disputed mobile phone bill, that can be easily resolved. It’s possible that you assumed you were on the Voter’s roll, but you’re not – again, this can be rectified in a matter of weeks.
And then there’s the chance that you might not qualify for a mortgage at all. However, it’s better to have this clarity now rather than causing unnecessary complications. If this is the case, we can guide you on the steps to enhance your creditworthiness for future endeavors.
Sure, you’re confident in your solid credit rating – you’ve never faced credit rejections, you’re listed on the Voter’s roll, and your credit card payments have been consistently on schedule. But can things still go awry?
Absolutely. Nowadays, if you were to approach 10 different Lenders, you’d likely receive 10 distinct maximum mortgage offers. Each Lender employs its own criteria to gauge affordability. And if you’re self-employed, the scenario gets even trickier: different Lenders assess your situation differently.
Some base their calculations on your net profit, while others consider your salary divided. Moreover, some focus on your latest year’s income, while others take an average over a span of 3 years.
Understanding your borrowing boundaries holds significant value as it clarifies your affordable price range. Our expertise allows us to inform you about the highest mortgage amount accessible to you.
Equally vital, we’ll collaboratively calculate your monthly repayment capacity. This approach is particularly well-received by the first time buyers in Middlesbrough who seek our guidance.
Date Last Edited: August 16, 2023