Agreement in Principle (AIP)
The way it works is as follows:
An Agreement in Principle is a security blanket for you, based on our assessments; we will identify a lender or number of lenders that will likely fit the bill. We will then assess your criteria and match it with the lender most likely to offer you the right loan for your circumstances. For example, this could be borrowing the maximum amount possible so that you can buy a better home, a lender that is flexible if you have missed one or two credit card payments or who will accept you if you have only been self-employed for 12 months. Every client is different and we have the knowledge to match you with the lender most likely to say yes!
We will need to collect supporting documents to back up your earnings (wage slips, accounts etc.) and bank statements to back up your affordability, commitments and outgoings. We will also verify your identity by taking copies of documents such as passports, driving licences etc.)
Once the likely lender has been identified we will provide them with a snapshot of your situation they will also carry out a credit check (do you pay your debts on time) and credit score (are you likely to pay them in the future). If all goes well they will accept you and you then have an Agreement in Principle. This is great if you are looking at a property, as you will now know that a lender or lenders are willing to provide you with money.
Estate agents will also like to know this information as it shows you are committed to move forwards and have got your finances in order.
Now we have your borrowing capacity, costs, deposit and monthly payments covered and we also have an agreement in principle backing all this up.