First Trust Bank Agreement in Principle: A Guide for Homebuyers
If you are planning to buy a house, you might have come across the term “agreement in principle” (AIP) in your research. In simple terms, an AIP is a statement from a lender that they would lend you a certain amount of money to buy a house. This statement is based on a preliminary assessment of your financial situation and credit score.
First Trust Bank is one of the lenders in the UK that offers an AIP to homebuyers. In this article, we will discuss what an agreement in principle is, how to get one from First Trust Bank, and its benefits.
What is an agreement in principle?
An agreement in principle is not a formal mortgage offer, but it is a crucial step in the house buying process. It gives you an idea of how much you can borrow and shows the seller that you are a serious buyer. With an AIP, you can confidently start house hunting, knowing that you have the necessary funds (or at least a promise of funds) to make an offer on a property.
An AIP is based on some basic information about your income, expenses, and credit score. It is not a comprehensive assessment of your finances, so the final mortgage offer may differ from the AIP. However, having an AIP in hand can speed up the process of getting a formal mortgage offer from a lender.
How to get an agreement in principle from First Trust Bank?
If you are interested in getting an agreement in principle from First Trust Bank, there are a few steps you should follow:
1. Research the type of mortgage you want: Before you apply for an AIP, you should have a clear idea of the type of mortgage you want. There are various types of mortgages available, such as fixed-rate mortgages, variable-rate mortgages, and tracker mortgages. Each type has its own pros and cons, so you should research and choose the one that best suits your needs.
2. Check your credit score: Your credit score is one of the factors that lenders consider when assessing your mortgage application. You can check your credit score for free using various online tools. If your credit score is low, you may need to improve it before applying for an AIP.
3. Gather your financial information: To apply for an AIP, you will need to provide some basic financial information, such as your income, expenses, and savings. You should also have an idea of how much you want to borrow and the term of the mortgage.
4. Apply for an AIP: Once you have all the necessary information, you can apply for an AIP from First Trust Bank. You can apply online or in-person at a branch. The bank will ask for some documents to verify your information, such as your payslips, bank statements, and ID.
5. Wait for the decision: After you have submitted your application, you will receive a decision from First Trust Bank within a few days. If your application is successful, you will receive an AIP certificate.
Benefits of an agreement in principle from First Trust Bank
Getting an AIP from First Trust Bank has several advantages:
1. Know your budget: With an AIP, you know how much you can afford to spend on a house. This will help you narrow down your search and avoid wasting time on properties that are out of your budget.
2. Confidence in negotiating: When you make an offer on a property, the seller will want to know that you have the necessary funds to complete the purchase. With an AIP in hand, you can show the seller that you are serious and have the backing of a lender.
3. Speed up the process: Once you have found a property you want to buy, having an AIP can speed up the process of getting a formal mortgage offer. The lender will already have assessed your financial situation and credit score, so they can quickly finalise the details of the mortgage.
In conclusion, an agreement in principle from First Trust Bank can be a valuable tool for homebuyers. It gives you an idea of how much you can borrow and shows sellers that you are a serious buyer. If you are planning to buy a house, it is worth considering getting an AIP from First Trust Bank.
