Alternatively, you can talk to a broker or specialist mortgage advisor. With market expertise and access to a wide range of lenders, a mortgage broker can give you a pretty good idea of the type of mortgages you are probably accepted for because of your particular circumstances. Theoretically, if you are a credible borrower who is probably accepted for a number of different mortgages, this means that you don`t really need to get a mortgage in principle from a particular lender before you start looking at houses, but they can still arrange this for you if that`s what you want. 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.” In theory, yes, but it is not a very good idea. Before a lender offers you a mortgage in principle, they perform a quick credit check on you. This will focus on any problems that could impact your borrowing, such as .B the history of bad loans, etc. Since the AIP is not legally binding, you don`t have to go with the lender that gave it to you, but remember that every time there is a credit check, it leaves an imprint in your file – the more you have, you will have a negative impact on your creditworthiness, and you may find that you were rejected because of that mortgage for a mortgage. 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. Buyers who have in principle entered into multiple mortgage contracts may ask the lenders concerned to remove them from their records, but the lender is not required to do so.
And if a mortgage application is rejected for credit reference reasons, it`s worth considering why. If the cause is several credit checks, it might be possible to convince the lender to ignore them. A decision in principle is not a guarantee. If you go through the full application process, the lender will take a closer look at your income and credit history. You can choose not to give yourself credits at this point.