Neither an MIP nor an PIA is a contract. No one guarantees you a mortgage. You still have to go through the entire mortgage application process – a much more detailed review of your finances – and you may be rejected. It`s not the happiest thing, but it`s good to be ready. You need certain documents, such as proof of identity, proof of address and bank statements. If you have them on hand, you (or your broker) can apply online in 20 minutes. You usually receive a decision on the same day – it can only take 15 minutes – with a written certificate or confirmation as evidence. An AIP mortgage typically takes up to 90 days and can help speed up the application process for a formal mortgage, as a lender can use the AIP to complete your application. Keep in mind that you don`t need to use the same lender that gave you the AIP when applying for a formal mortgage. A mortgage is not in principle a formal mortgage offer, nor is it a guarantee that the lender will give you a mortgage in the future. Their agreement in principle lasts about 30 to 90 days depending on the lender. If your circumstances or credit history change during this period (for example.
B miss a credit card payment), your AIP will change validity. A PIA is a statement from a lender that says he likes to lend you a certain amount of money to buy a particular property. You may think of it as the first part of your real mortgage application. You must complete a full application and let the lender check your income and credit history before receiving a mortgage. An agreement in principle (AIP) is the next step after receiving a PMI. The document states that a lender would “in principle” lend you a certain amount for the purchase of a property. The lender will carefully review your financial history, including bank statements, salaries and any additional income, employment history and address, how much deposit you have, and all other savings. This is called accessibility control. You can apply again if it takes longer than expected to find the house you want to buy.