Thursday, 29 March 2007
AIP - Approval in Principle
I re-read the article that was posted yesterday about "My first home loan" and realised that it was kinda like reading an article about the latest computer technology available. "You know the latest MP3 trends in Audio Visual technology is the MPEG4 format which is compatible with most converters.... WHAT?!? "
So lets elaborate on some of that mortgage/bank jargon that we've heard before but been to afraid to ask about:
Approval in Principle
An approval in principle is a confirmation from the banks (that you applied to for your bond) saying that IF you are clear as a client and all credit checks come through clear PLUS your salary has been verified with your current employer, that the banks "in principle" are happy with granting you a bond. This is the first step in the bond process.