Agreements in Principle


M

Mick Maybe

What's the difference between an agreement in principle with a lender to a
full application.

The AIP application entails a credit check and normally lasts for three
months. After the three month period do they do another credit check bearing
in mind that too many credit checks can be detrimental.
 
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P

Phil Deane

Mick said:
What's the difference between an agreement in principle with a lender to a
full application.

The AIP application entails a credit check and normally lasts for three
months. After the three month period do they do another credit check
bearing in mind that too many credit checks can be detrimental.
An Agreement in principle, is a lender agreeing to lend you certain funds on
the assumption that you can provide income verification, the valuation is
satisfactory and there is no material reason that would prevent them from
lending,

When you submit the full application, they check all of the above.

The 3 month limit, is just to get more up to date info from the credit
agencies, in case you have late payments defualts registered etc in that
time
 

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