Decision in Principle (DIP)

A Decision in Principle (DIP) is where a mortgage lender pre-vets a borrower (homebuyer) and confirms how much they are prepared to lend to the borrower.

With a DIP a buyer can position themselves as a motivated and serious buyer when making an offer.

A DIP can speed up the mortgage approval process once a buyer has found a property to buy.

DIPs are also known as 'Agreements in Principle (AIP)'.

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Chris Salmon, Director

Author:
Chris Salmon, Director