When you`re in the process of buying a home, getting an agreement in principle (AIP) is an important first step. It`s a document that shows the lender is willing to lend you a certain amount of money, subject to certain conditions being met. But what happens if you`re rejected after an agreement in principle?

Firstly, it`s important to understand that an AIP is not a guarantee of a mortgage offer. It`s simply an indication of how much you may be able to borrow based on your income and credit score. The lender will still need to assess the property you want to buy, as well as your financial situation, before making a final decision.

So, if you`re rejected after an AIP, it`s usually because something has come up during the full mortgage application process that means you no longer meet the lender`s criteria. For example, if your financial circumstances have changed since the AIP was issued, such as losing your job or taking on more debt, the lender may no longer be willing to lend you the amount stated in the AIP.

It`s also possible that the property you want to buy doesn`t meet the lender`s criteria. For example, if the lender determines that the property is overvalued or has structural issues, they may not be willing to lend you the full amount stated in the AIP.

So, what can you do if you`re rejected after an AIP? Firstly, it`s important to understand the reasons why you have been rejected. This will help you to determine whether you need to address any issues with your financial situation or look for a different property that meets the lender`s criteria.

You may also want to consider speaking to a mortgage broker, who can help you to understand your options and identify lenders who may be more willing to lend to you based on your circumstances.

Ultimately, while it can be disappointing to be rejected after an AIP, it`s important to remember that it`s not the end of the road. There are still other options available to you, and with the help of a knowledgeable professional, you can find a mortgage that meets your needs and helps you to achieve your dream of owning a home.