When a lender examines your income and affordability for a mortgage and decides to lend to you, they issue a document called an agreement in principle (AIP). This document is essential in the mortgage process, as it allows you to make an offer on a property and potentially negotiate prices with the seller. A buyer with an AIP is more attractive to a seller than one without, as they have already been pre-approved and can proceed through the mortgage process more quickly.
Typically, AIPs are valid for 30-90 days, but they can be renewed upon expiration. If you need an AIP, you can speak with a mortgage broker like us in Southport. We can usually arrange an AIP within 24 hours of your mortgage appointment.