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. To reach an agreement in principle, you must contact a mortgage lender directly or through a mortgage broker. A mortgage is not in principle a formal mortgage offer, nor is it a guarantee that the lender will give you a mortgage in the future. 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, also known as a “decision in principle,” “mortgage promise” or “mortgage in principle,” is a certificate or statement from a lender indicating that it would lend you a certain amount “in principle.” If you have had credit problems in the past or have a limited credit history and are not sure what a bank or construction credit union might lend you, an agreement in principle could give you extra security from your credit perspective. Plan International Mortgage (PMI) is able to enter into a pre-approved mortgage agreement within 24 hours hours. There is no obligation to use these funds if applicants find a better alternative, but this means that they will have all the important sheet of paper to indicate sellers and/or agents. Acceptance in principle (AIP) can be achieved by filling out the rather frightening application form attached to it. Fortunately, most pages can be ignored or left empty and many questions call for the answer not to be applicable n/a. PMI will review applications seeking possible anomalies and submit to the lender an authorization in principle that should not last more than 48 hours.
If you remortgaging, there is less need for this information, so you would file an agreement in principle once you have chosen a lender and a product. You can complete the entire process online – it should in principle only take about 15 minutes to get a mortgage. Filling out online forms with some lenders can even make you an immediate offer. It may take longer if you do it over the phone or in the store. It is important to remember that, in principle, an agreement is not a mortgage offer or official confirmation that you have a mortgage. To do this, you must go through the full application process. A policy decision shows that one can theoretically afford to buy a property. This could make you a more attractive buyer and set you apart from other potential buyers.
Most lenders search for “hard” credit before offering you an agreement in principle that leaves traces in your credit file.