Buyers are often asked if they have mortgage approval in principle before making an offer. Approval in Principle (AIP) is a letter from a lender showing the loan amount approved based on some initial checks. It’s free to get an AIP and it’s usually valid for six months. It can be extended quite easily if a buyer’s circumstances haven’t changed during that time.
AIP is necessary as it helps buyers to stay within budget when searching for properties. It isn’t a guarantee of a mortgage but it can help to show a serious buyer and some estate agents may request to see it.
If you make an offer on a property, it’s more likely to be accepted if you have a mortgage approval in principle. If you have any queries on the above please don’t hesitate to contact me on 087 2500716. I’m here to help.