In the world of real estate, it’s common for potential buyers to secure an agreement in principle from a mortgage lender before making an offer on a house. But can you actually put an offer on a house with just an agreement in principle?

The short answer is yes. An agreement in principle, also known as a «decision in principle» or a «mortgage in principle,» is a conditional approval from a lender stating that they are likely to lend you a certain amount of money based on your financial situation. It gives you a rough idea of how much you can borrow and shows sellers that you’re a serious buyer.

However, it’s important to note that an agreement in principle is not a legally binding contract. It’s simply an indication that the lender is willing to consider lending you the specified amount, subject to further checks and a satisfactory valuation of the property.

When putting an offer on a house with an agreement in principle, the seller may still require you to provide additional documentation and undergo a formal mortgage application process. This may include submitting proof of income, bank statements, and other financial documents. The lender will also need to conduct a valuation of the property to ensure it meets their criteria and the agreed-upon price.

While an agreement in principle can make you a more competitive buyer, it does not guarantee that your offer will be accepted. Sellers may still consider other factors, such as the offer price, the conditions of the sale, and the overall strength of your financial situation.

It’s worth noting that in some cases, sellers may prefer buyers who have already secured a firm mortgage offer, as it provides a higher level of certainty and reduces the risk of the sale falling through. However, this does not necessarily mean that you cannot put an offer on a house with just an agreement in principle.

Ultimately, whether or not you can put an offer on a house with an agreement in principle may depend on the seller’s preferences and the specific circumstances of the transaction. It’s always advisable to consult with a real estate professional and mortgage lender to fully understand your options and increase your chances of a successful offer.


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