Also required are a number of things such as income proof and address history of about three years. However, too many of these ‘soft searches’ can impact the lender’s willingness to lend and the borrower’s credit score.ĭIP is also based on the lending criteria and systems of the lender. Of note is that lots of lenders carry out light credit checks that might not have an effect on a borrower’s credit score. Credit score also comes into the picture and credit reference agencies will be contacted to find your creditworthiness. It shows the potential of accessing funding and looks at different scenarios.ĭIP takes a number of things into account, including the amount the borrower is able to afford based on different factors such as outgoings and income. Just like the full mortgage itself, the decision in principle can be applied for directly from the lender or via a mortgage broker. In essence, it offers you a glimpse of the expected amount the lender is ready to offer. DIP is a sure stepping stone towards accessing that mortgage you’ve set eyes upon. It’s generally a confirmation by the lender that they’re prepared to provide you with the needed funds. DIP is also referred to as lending certificate or AIP (Agreement In Principle) or mortgage promise depending on the lender. Once you’ve made up your mind that you need a mortgage and have set eyes on your perfect home or investment opportunity, then the DIP (Decision In Principle) comes into play.
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