Aip

Worried

How does getting an AIP work? Is this done on a credit check alone, or is some supporting documentation needed at this stage, or is documentation required at the application stage alone, once an offer has been accepted on a property? Thanks.

AndrewSmith

Depends on the lender.

Some do a credit check/score, some will give a binding decision (subject to the information you give being correct), some do not credit check and merely use it as a check against their criteria to see if you fit. Some will carry out credit checks that do not leave a permenant footprint on your file, some will carry out searches that are recorded.

You do not normally need to submit supporting documentation at AIP stage. That is normally done at the point of full application.

It really does differ from lender to lender. Ask the question of the lender concerned or the broker you are using.

Andy

Worried

Sorry, but then is it usual to get an AIP with a particular lender before you start looking it at properties then, or should you not do this until you have found somewhere? I'm just thinking that if the lender you chose do a credit check and then you don't find a place for a while, then the particular rate or deal isn't available anymore, then you've got a footprint on your credit record for nothing.

Is it usual to just go to a advisor and get an idea of what you can borrow by them matching you against lenders criteria and then get the AIP done when you've found somewhere. It's just that agents always ask you if you've got an AIP in place when arranging a viewing, so is this required and is it the best thing to do, so you're head of the race when it comes to putting an offer in on a property?

AndrewSmith

What I usually do for clients is establish how much they can afford, who the likely lender will be and if that lender does not leave a footprint on your credit file, obtain an AIP.

When my clients are quizzed or pushed by the Agents to produce an AIP or see their adviser I simply tell them to give the Agents my number and I will assure them that the offer being put in is viable (without disclosing any financial information). Also remember that the agent is required by law to put forward all offers to the vendor whether you see their adviser / produce and AIP or not.

Worried

Thanks very much. I will make sure no AIP is obtained where a footprint is left.