When you get a mortgage approved in principle you are basically one step closer to buying your new home or property. Want to understand more about it? Continue reading…
What is Mortgage Approval in Principle?
A Mortgage Approval in Principle is an indication from a lender of how much they will be prepared to lend to you based on the information you provide to them. Getting AIP means you will know whether you will get mortgage approval and will give you an idea of the amount you can borrow. It’s not the official loan offer but it is usually the basis of the official loan offer.
How to get Mortgage Approval in Principle
First of all, you will need to search for the best mortgage rates and mortgage deals using an experienced mortgage broker that suits your needs and who you can trust to get you the best deal possible.
Once you’ve found a mortgage deal, you can either apply for an AIP via a mortgage broker (mortgage credit intermediary) or directly to the lender.
The fastest way to apply is online, however you can also make your application over the phone by giving us a call or schedule a meeting using our calendar.
You don’t have to produce all the documentation needed for a mortgage to get an AIP, but they’ll need to verify your identity and require information about your:
- Income and spending
- How many dependants you have
- Existing property you may own
A mortgage lender will also run some mortgage eligibility checks. One of these includes a credit check which looks at your credit history. This is usually a ‘hard search’ which is recorded on your credit report.
Mortgage Approval in Principle is generally a quick and simple process and you’ll normally get a decision within 10 working days. However, current lender turnaround times are outside of this with anything up to 20/25 working days likely. As such, if you are considering a mortgage application, you should start the process asap.
If you are thinking of applying for a mortgage and would like to discuss it with a mortgage expert, speak to a member of the Irish Mortgage Corporation team who can advise you on your options.