Buying a house can be one of the most daunting and stressful experiences we go through in our adults lives. Whether you are a first time buyer, relocating or simply looking to move up the property ladder – with mortgage application, recommendation and offer versus house hunting, viewings, offers and acceptance, it is often more a case of the stars aligning with everything timed to coincide at one time to make the property purchase as smooth as possible.
A mortgage – to all intents and purposes – is generally a staged process with average times on application to offer to be used as a rule of thumb. Searching for your dream property, on the other hand, can more often be a longer, more drawn out and ambiguous process. It is in this situation that a Decision In Principle can be a powerful and useful tool in your property search.
Sometimes also referred to as a Mortgage Promise or an Agreement In Principle, the Decision In Principle (DIP) is a statement or certificate from a lender or brokerage to state the amount they would be willing to loan an individual (or individuals) based on some basic information gathered as an initial fact find of their personal circumstances.
Though a DIP is not required to obtain a mortgage, it is known that some agents and developers will require you to have one, so it is always best to check when your property search begins. Also, it is worth remembering that though the DIP is an indication of your potential borrowing amount at the time, you will still be required to make a full application at the time you require a definite mortgage to be offered – however, we will need to check that the information you gave to us at the time is still relevant. As part of the full application process it is worth noting that any additional information that was not covered as part of the DIP fact find that may negatively influence your final mortgage offer decision will need to be taken into account.
The main advantage of having your DIP is the credibility it offers to you as a propective buyer in the eyes of developers and estate agents – confirming that you can afford the properties you are showing an interest in. This is particularly useful in popular areas where the property market moves much quicker than others.
We can usually issue a DIP within 24 hours of being contacted and these are generally valid for around 90 days. Though the process of obtaining a DIP can appear a daunting and confusing process, One 77 can provide you with one by utilising our access to the whole UK mortgage market to give you independent advice and recommendations completely fee free.
Once you have your DIP we will check in with you regularly to see how your search for a property is progressing. Once you have found a property and are ready to progress we will simply pick up from where we left off with the DIP to complete a full mortgage application.
To discuss getting your Decision In Principle today call us on 01249 474952 or complete the form below and we will be in touch at the time of your choosing.