Many clients are unsure of the meaning and importance of obtaining a mortgage in principle (also known as a decision in principle) from a lender before putting in an offer on a property.
Whilst some agents may put forward your offer without one in place, the majority will not even consider this without that important piece of paper.
This essentially gives confidence to the agent that you will be able to secure a mortgage.
Why Is It Important?
It is vital to the mortgage process, and an extremely accurate indicator as to whether your final application will be approved.
In fact, we have never seen a mortgage application declined after a successful mortgage in principle has been granted.
So it really pays to get one.
What Are The Advantages?
Getting a mortgage in principle up front i.e before you have found a property and made any kind of offer, can give you a hugely competitive advantage over other buyers, for when you do find a property you wish to buy.
You can go straight in with an offer, and don’t need to wait several critical days for the decision to come back, in which time you could easily miss out to another buyer coming in.
How Long Do They Last?
They are valid for 3 months and can be renewed if you have not found a suitable property in that time, so there is no harm in being prepared!
Contact an experienced member of the Mortgages For Yacht Crew team today, to arrange a free consultation!
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