If you have an agreement in principle and decide to make a full application with that lender, you must provide more detailed personal data. The lender is not required to lend you the full amount indicated in the AIP. A mortgage is not in principle a guarantee that you can borrow this amount. We have in principle made a free and simple mortgage. Before you ask for an agreement in principle, check your credit report first. You can do this with Experian, Equifax and TransUnion (formerly CallCredit) – agencies that are able to establish your credit rating in the UK. They calculate it a little differently, so it is worth getting a report of all three. To obtain an IPA, you must answer other questions, send lender documents and perform a credit check. But the result is a more accurate estimate of what you can borrow, and more certainty that you will be approved for a mortgage. If your lender performs severe credit checks, don`t try to apply too many times, as this could damage your credit score. 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. If they see that you have managed your money well, they will offer you a mortgage instead. But if you see a lot of missed bills and unpaid debts in your report, it could prevent them from granting you a mortgage. Once you have your agreement in principle, you can see real estate within your specific price range; that is, the amount you could possibly borrow, plus each deposit you may have saved. Their agreement in principle lasts about 30 to 90 days depending on the lender. If your circumstances or credit history change during this period (for example. B miss a credit card payment), your AIP will change validity. To do this, some lenders will conduct a “flexible” credit check, which means they will not have to apply for your authorization and will not affect your creditworthiness.
This is essentially a background review to ensure that the details you provide are correct. If you decide to go directly to a lender, you can use the information provided to check your credit file. This will help them find out if they can give you a mortgage and if they are happy to lend you the desired amount. At Trussle, we do not check the credit history at the PMI level. 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. To confuse matters, mortgage lenders refer to the initial mortgage decision-making procedure, either by the term “agreement in principle (AIP)” or “decision in principle” (DIP). The only thing is that you should be extremely confident about what you can afford, because your mortgage application will contain a difficult credit check. Full credit checks leave a “fingerprint” in your credit file. Many footprints in your file can have a negative impact on your score, simply because it suggests an element of “desperation” to borrow money.