When you are looking forward to purchasing a property, you must be looking for a suitable loan too. For that, you will need to apply for a home loan for buying the property of your dream. Here, a loan approved in principle is one of the crucial steps in the process of purchasing a property.
You must be wondering what this approval in principle or AIP is. It is approval in principle which is the first step of getting your home loans approved. This is an important step that comes with a lot of amazing benefits. To know more about the approval in principle and how it can benefit you, read on.
What is AIP?
When you want a loan for buying a property, you have to apply for the approval in principle or AIP. Once you apply, the bank will take some decisions on whether they want to approve your home loan request depending on your financial status.
When you have the approval, it means the bank will guarantee you a loan based on all the documents and information that you have provided to the bank.
How to get your AIP?
Applying for approval in principle is quite easy and seamless. It doesn’t take much time. Here are some of the steps to apply for an AIP:
- You have to contact a consultant who can perform a complete analysis for you in just an hour
- You can choose your preferable bank and all the important documents and other essential information will be emailed for verification
- When the documents are completely ready, the banker will be assigned for processing your application for your home loan AIP
How much time does it take?
The loan approval in principle doesn’t take much time to get approved. If you submit an urgent application for AIP, it can get the approval on the same day depending on the credit score, financial status, and more. But if the application is not urgent, then the normal time for processing your application is about one working day.
How will you know about AIP approval?
Once your approval in principle is accepted, you will receive an email from the concerned bank. They will message you by stating the loan amount as well as the loan tenure that you are eligible for.
They will also state the highest price for the purchase when you are looking for a property. Once you get that mail, you can start looking for your dream house peacefully.
This is all about the loan approved in principle steps and processes that you will have to follow. Once you are done with this, you will get the approval for the home loan you have applied for. After all, the dream house you are eyeing right now is not so far away!
But make sure that you have all your essential documents ready and handy for emailing them to the bank or creditor for approval. You can also check your credit score which plays a vital role in the loan approval process.