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)'.

Author:
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.