In-Principle Mortgage

  An In-Principle Mortgage is a provisional mortgage agreement or offer made before thorough checks and valuations etc have been carried out.

  It is an agreement that a lender is willing to lend you a certain amount after taking into account your salary and other personal details, but it is not a final mortgage offer.

  An in-principle offer may not become a final offer if the property is found to be of a lower value than the mortgage secured on it, or if other facts come to light which make a lender reluctant to fund the purchase.

  An in-principle decision may also be given if the prospective buyer has yet to find a suitable property, but wants to know what value of house to look for.


Related Directory Categories:

Mortgages


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