When you apply for a mortgage, one of the first steps in the process is obtaining an agreement in principle (AIP). This is a document that demonstrates to potential lenders that you could be a viable candidate for a mortgage. An AIP doesn`t guarantee that you will be approved for a mortgage, but it can give you a better idea of what you might be able to borrow. So, what do you need to provide for an agreement in principle?
1. Personal Information
You will need to provide your full name, date of birth, address history, and contact details. This information is necessary for the lender to verify your identity and contact you if necessary.
2. Employment and Income Information
You will need to provide details of your current employment, including your employer`s name and address. You will also need to provide information about your income, which can include your salary, bonuses, and any other sources of income.
3. Financial Information
You will need to provide details of your current financial situation, including any outstanding debts you may have, such as credit card debts or loans. You will also need to provide details of your monthly living expenses, such as rent/mortgage payments, utilities, and food.
4. Credit History Information
The lender will also want to know about your credit history. This includes things like your credit score, any missed payments on loans or credit cards, and any recent bankruptcies or other issues.
5. Property Information
Finally, you will need to provide information about the property you are interested in purchasing. This can include details like the address, property type, and estimated purchase price.
In summary, to obtain an agreement in principle, you`ll need to provide a range of personal, financial, and property-related information. Be sure to have all the necessary documents and information ready in advance to make the process as smooth as possible. Once you have an agreement in principle, you`ll be in a better position to make an offer on a property and start the process of obtaining a mortgage.