What Does The Agreement In Principle Mean

Most lenders do a “hard” loan search before offering you a basic agreement that leaves a trace in your loan file. It is important to remember that an agreement is not, in principle, a mortgage offer or an official confirmation that you have a mortgage. The mortgage lender will then review your loan file to assess your financial situation and calculate what they might be willing to lend you. A mortgage is not, in principle, a formal mortgage offer, nor is it a guarantee that the lender will grant you a mortgage in the future. The mortgage lender will take a close look at all of your financial history, including bank statements, salary and additional income, employment and address history, the amount of a deposit you have, and any other savings. This is a so-called affordability check. .