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. Your mortgage broker or lender will ask you several questions covering areas such as your income, expenses, the type of work you do, your credit history and the size of your deposit. You need the following information: An agreement in principle, also called “decision in principle,” “mortgage promise” or “mortgage in principle,” is a certificate or statement from a lender to say that it would lend you “in principle” a certain amount. Realtors will often want to make sure that you will be able to get a mortgage on a property before making an offer, so it may be helpful to have an agreement until that date. You can complete the entire process online – it should in principle only take about 15 minutes to get a mortgage. Filling out online forms with some lenders can even make you an immediate offer. It may take longer if you do it over the phone or in the store. It is usually best to use a mortgage broker because he or she will have access to a wider range of mortgages that you can find on High Street or online. You can also save time this way, as your broker can immediately find you the best potential mortgage.
This means that once your offer is accepted, you can simply call your broker and ask him to continue the full application instead of having to buy a little more. If you remortgaging, there is less need for this information, so you would file an agreement in principle once you have chosen a lender and a product. To reach an agreement in principle, you must contact a mortgage lender directly or through a mortgage broker. Once you have decided to start the house hunting seriously, you are in principle asking for a mortgage. Apart from its practical applications, it will help you focus on and engage in your task. Knowing what you can afford, even in theory, gives a huge boost to trust. If you are considering how much money to borrow, the mortgage lender should check your credit history to make sure you would be able to meet the monthly payments.