Your mortgage broker or lender will ask you several questions covering areas such as your income, expenses, the type of work you do, your credit history and the size of your deposit. You need the following information at your fingertips: You must provide basic personal information, including your salary, how much you want to borrow and what all your monthly fees add up approximately. An agreement in principle (AIP) – also called Mortgage In Principle (PMI) decision – is a written estimate or statement from a lender to say how much money it would lend you if you bought a property. A mortgage in principle can also save time in the purchase process, both in terms of accepting your offer and speeding up the mortgage application process. At this point, you can easily provide the information without proof. But you will need this when you apply for a full mortgage. Whether the maximum amount you can afford is visible to the real estate agent depends on the type of mortgage that was issued to you in principle. There are some mortgages specifically for those who have bad credit. Even if you have obtained an IPA, you may not receive a formal mortgage offer. This can be for a number of reasons, such as.B. if you have recently been declared bankrupt, if your financial history is incomplete, or you have only been busy for a few months. It is usually best to use a mortgage broker because he or she will have access to a wider range of mortgages that you can find on High Street or online. You can also save time this way, as your broker can immediately find you the best potential mortgage.

This means that once your offer is accepted, you can simply call your broker and ask him to continue the full application instead of having to buy a little more. Even if it is not a full mortgage application, you must still provide information to obtain an agreement 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.