As a potential home buyer, it`s important to understand the ins and outs of the mortgage application process. One aspect of this process is the Agreement in Principle (AIP), which is essentially a preliminary decision by a lender on the amount they may be willing to lend you based on your financial situation.
If you`re considering applying for a mortgage with NatWest, you may be wondering how long their AIP lasts. The good news is that NatWest`s AIP typically lasts for 30 days. This means that you have one month to start your house hunt with the assurance that you may be able to borrow a certain amount from the bank.
It`s important to note, however, that an AIP is not a guarantee of a mortgage offer. It`s simply an indication that, based on the information provided, the lender may be able to offer you a certain amount of money. Once you find a property and make a formal mortgage application, the lender will evaluate your application and make a final decision.
During the 30-day period of your AIP, you may want to take the opportunity to get your finances in order and prepare for a formal mortgage application. This could include gathering all necessary documentation (such as proof of income, bank statements, and ID), paying off any outstanding debts, and improving your credit score.
It`s also worth noting that NatWest may reassess your AIP if there are any significant changes to your circumstances during the 30-day period. This could include a change in employment status, a major purchase, or a change to your credit score. In this case, your AIP may no longer be valid, and you would need to reapply for a new one.
In summary, NatWest`s Agreement in Principle typically lasts for 30 days, giving you one month to search for a home with the reassurance that you may be able to borrow a certain amount from the bank. However, it`s important to remember that an AIP is not a guarantee of a mortgage offer, and you should use the 30-day period to prepare for a formal mortgage application. If your circumstances change during this period, your AIP may no longer be valid, and you would need to reapply for a new one.