If you`re in the process of buying a home, you may have heard of a mortgage agreement in principle (AIP). This is a document that outlines how much money a lender is willing to lend you for a mortgage based on your financial circumstances. Typically, an AIP is valid for around 90 days, but what happens when it expires?
If your AIP expires, it means that the lender`s decision to lend you money is no longer valid, and they may need to reassess your application. This can cause delays in the home buying process, and potentially, you may need to provide updated financial information to the lender.
It`s essential to understand that an AIP isn`t a guarantee of a mortgage offer. The lender will still need to conduct a full assessment of your financial circumstances and any other factors that may affect their decision to lend you money.
So, what should you do if your AIP expires?
Firstly, don`t panic. An expired AIP doesn`t mean that you won`t be able to get a mortgage. You can apply for a new AIP, but it`s essential to review your financial circumstances before doing so. If your circumstances have changed, such as a change in employment or income, this may affect the lender`s decision to lend you money.
It`s also worth considering other lenders. Just because one lender has rejected your application, it doesn`t mean that another lender won`t be willing to lend you money. It`s always worth shopping around to find the best deal for your circumstances.
If you`re working with a mortgage broker, they can help guide you through the process and advise you on the best course of action. They can also help you prepare your application and ensure that it meets the lender`s requirements.
In summary, an expired AIP can cause delays in the home buying process, but it doesn`t mean that you won`t be able to get a mortgage. By reviewing your financial circumstances and seeking advice from a mortgage broker, you can take steps to secure a new AIP or explore other options.