Decision in Principle (DIP) | Definition
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.
A Decision in Principle is also sometimes called an 'Agreement in Principle (AIP)'.
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Chris Salmon, Director
About the author
Chris Salmon is a co-founder and Director of Quittance Legal Services. Chris has played key roles in the shaping and scaling of a number of legal services brands and is a regular commentator in the legal press.