Agreement In Principle
Agreement in Principle or Decision In Principle? Either way it’s a certificate that confirms the lender has provisional agreed to grant you a mortgage, after an affordability assessment and or a credit check. This is normally without any documentation being assessed by the underwriters.
Also, a big part of any mortgage application is the survey / valuation report. The AIP / DIP is exactly that “in principle”.
It doesn’t always give any security in terms of the mortgage interest rate but will provide the seller, the estate agent and yourself a bit of peace of mind that a mortgage of that amount may be available to you.
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