If you`re thinking of buying a house, then you might have heard of an „agreement in principle“ (AIP). An AIP is a preliminary agreement from a lender to provide you with a certain amount of mortgage. It`s a helpful step in the home buying process, as it gives you an idea of what you can afford to buy. But how long does it take to get agreement in principle? Let’s find out.
The short answer is that it can take anywhere from a few minutes to a few days. The speed largely depends on the lender you choose and their application process.
Many lenders now offer online AIP applications, which can take as little as 15 minutes to complete. Once you`ve submitted your application, you should receive an AIP decision within a few minutes. However, this means that the lender is only making a preliminary assessment, and your actual mortgage application could be subject to further checks.
If you prefer to speak to someone in person, you can apply for an AIP over the phone or in a branch. The turnaround time will depend on how busy the lender is and whether they need additional information from you.
Some lenders may take longer to provide an AIP, particularly if you have a more complex financial situation. For example, if you`re self-employed or have multiple sources of income, the lender may need more time to assess your application.
It`s important to note that an AIP is not a guarantee that you`ll be offered a mortgage. It`s simply an indication of how much you might be able to borrow. Once you`ve found a property and made an offer, you`ll need to apply for a formal mortgage offer, which can take several weeks.
In summary, getting an agreement in principle can take anywhere from a few minutes to a few days, depending on the lender you choose and their application process. While an AIP can give you an idea of what you might be able to borrow, it`s important to remember that it`s not a guarantee of a mortgage.
