Oct 15, 2021

What Is An Agreement In Principle For A Mortgage

At this point, you can easily provide the information on your own without any supporting documents. But you`ll need it when you submit your full mortgage application. You will then be offered a mortgage based on what the lender believes you can afford. This may be more or less than you originally expected. The size of your contract can, in principle, be a useful indicator of how much you can borrow. This allows you to search for a property in your price range. A difficult search will appear in your file in the form of a loan application. A Memorandum of Understanding (MOU) – also known as a strategic decision (DIP) or mortgage in principle (MIP) – is a written estimate or statement from a lender to say how much money they would lend you if you bought a property. .