Approval in principle from a mortgage broker or lender gives prospective buyers an idea of how much they would be approved for based on the information they provide about their finances
The ‘approval in principle’ stage forms part of the initial consultation phase of the mortgage application process. Buyers are required to give details relating to a financial advisor about their current financial situation such as salary, monthly outgoings and the loan amount and term sought. Based on the information given, a financial advisor would then calculate how much an applicant would be able to borrow.
A big advantage for those still looking around for that ideal home is that this part of the process is quick, simple and informal. No documents have to be submitted and all applicants are told how much they would be able to borrow straight after the initial consultation phase, allowing prospective buyers to shop around for their dream home within a realistic budget.
When an applicant has chosen what property they want to buy, the formal application process can then begin. At this stage, applicants would have to submit various documents verifying the information that was given in the first stage described above – and providing that everything is in order, you should then receive full approval for the sum agreed in principle.
As experienced mortgage brokers, MortgagesDirect.ie can offer you approval in principle over the phone or in our office – within a matter of minutes. We offer three convenient options for those looking to get approved: