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If you`re a homebuyer, you may be wondering if you can make an offer on a property with an agreement in principle (AIP) from your lender. The answer is yes, but there are some things to keep in mind.
First, it`s important to understand what an AIP is. It`s a document from a lender that states how much they would be willing to lend you based on some basic information about your financial situation. It`s not a formal mortgage offer, but it can give you an idea of what you can afford and help speed up the mortgage application process.
When it comes to making an offer on a property with an AIP, it`s important to remember that it`s not a guarantee of a mortgage. The lender will still need to do a full mortgage application and underwriting process before they will give you a formal mortgage offer. So, while an AIP can be helpful in showing that you`re a serious buyer, it doesn`t give you any extra buying power.
Another thing to keep in mind is that an AIP is usually only valid for a certain period of time, usually around 90 days. So if you`re thinking of making an offer on a property, make sure your AIP is still valid and that you`ll be able to complete the mortgage application process within that time frame.
Finally, it`s important to remember that making an offer on a property is a legally binding agreement. If you make an offer and it`s accepted by the seller, you`ll be required to follow through with the purchase. So, it`s important to make sure you`re fully committed to buying the property and that you have all your finances in order before making an offer.
In summary, you can make an offer on a property with an AIP, but it`s important to remember that it`s not a guarantee of a mortgage and that it`s a legally binding agreement. Make sure your AIP is still valid, that you`re fully committed to buying the property, and that you have all your finances in order before making an offer.