It can feel pushy, but knowing what this document is (and isn’t) is the first step in your property journey.
What is an AIP?
An Agreement in Principle (also called a Decision in Principle or DIP) is a certificate from a lender stating that, in theory, they would be willing to lend you a specific amount.
It is not a guarantee. It is a “soft check” of your credit score and income to see if you pass their basic criteria.
Why do I need one before viewing?
Estate agents ask for this to weed out “window shoppers.”
- Proof of Budget: It proves you can actually afford the houses you are looking at.
- Speed: If you find a house you love, having an AIP ready means you can make an offer immediately. In a competitive market, an offer with an AIP attached will always beat an offer without one.
Does it affect my credit score?
Most AIPs today involve a “soft search,” meaning it won’t leave a visible footprint on your credit file for other lenders to see. However, always ask your broker to confirm this before running the check.
The Bottom Line:
An AIP is your “ticket to ride.” It doesn’t commit you to that lender, but it allows you to be taken seriously by sellers.
