Why you want to get a Mortgage in Principle before applying for a Mortgage Application
Once upon a time you would find the home of your dreams and then apply for a mortgage. My how times change!
Why getting a Mortgage in Principle is the best idea?
Believe it or not a lot of people will find their dream property only to find out when they go through the application stage that they can’t actually afford it! So, to save yourself a lot of heart ache we highly recommend you get a MIP to give you a clear indication of how much you can borrow, helping you to only look at property’s that fit your budget.
Why will having a Mortgage in Principle help Estate Agents?
First off, a MIP makes the Estate Agent automatically think you are serious about buying a property, and clearly indicates to them that you are not a time waster or a dreamer and are staying within your budget. This puts you in a much stronger position when you find your perfect castle!
What is a Mortgage in Principle?
Some people refer to a Mortgage in Principle (MIP) to a DIP! Which means a Decision in Principle (the mortgage industry loves an abbreviation)!
A DIP is written by a bank or a building society (the lender). This doc will state how much it may lend you. Understand that this is not a binding contract, and you could still be refused a mortgage, but it is the closest indication you will get without actually physically applying for a mortgage.
A round up of why you should get a Mortgage in Principle in brief:
1. A MIP or DIP will give you a clear indication of what you can afford
2. Some Estate Agents and sellers will only take you seriously if you have a MIP /DIP!
3. Having a MIP / DIP reduces the risk of you applying for a big mortgage only to be rejected down the line
4. A mortgage rejection can be detrimental to your overall credit score making your next application process harder
5. Think of a MIP / DIP as a dummy run with less risk attached!
When should you get a Mortgage in Principle?
As soon as you are seriously house hunting!
The reasons as mentioned above, and you will save time in the buying process in terms of getting your mortgage offer accepted and speeding up the mortgage application.
Here at MTGE we can help you with your Mortgage Application / DIP for free! All you need to do is just reach out! We can provide you with an official copy of your MIP once we have completed your enquiry form. To get started just CLICK HERE
Our nifty little calculator can also help you with calculating what you may be able to borrow in the meantime, to try it out CLICK HERE
When does a Mortgage in Principle expire?
Generally, it will last between 60 and 90 days. If you fail to find a property or do not have an approval of an offer in that time, it’s possible you will need to apply for another. Again, we can help you with this for FREE by CLICKING HERE and contacting us today.
You should have no problems getting another MIP unless you have had any significant changes since applying for your last.
So, to get your property dreams underway let’s get that MIP / DIP sorted today!
PLEASE NOTE: Article written March 3rd 2022. Information contained within this article may change so should not form part of any form of decision making without contacting a professional advice