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🎯 Don’t Fall in Love with a Property Before This Step:

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by

Alain Mbe
in ,

Why a Decision in Principle Is Crucial

“By failing to prepare, you are preparing to fail.” — Benjamin Franklin

In today’s competitive property market, enthusiasm is high — but preparation is key. Whether you’re a first-time buyer or a seasoned mover, one critical step must come before falling in love with a home: getting a Decision in Principle (DIP). Also known as an Agreement in Principle (AIP) or Mortgage in Principle, this vital document can be the difference between confidently making an offer — and watching your dream home slip through your fingers.

In this blog, we’ll walk you through:

  • ✅ What a Decision in Principle actually is
  • 🧠 Why it matters more than most people think
  • 🛠️ How it’s obtained and what to expect
  • 🧭 What happens after you have it
  • 🧩 How Empreso supports you through the entire journey

💡 What Is a Decision in Principle?

A Decision in Principle (DIP) is a written indication from a mortgage lender showing how much they might be willing to lend you. It’s based on a preliminary assessment of your income, credit history, and financial commitments.

While it’s not a mortgage offer — it doesn’t guarantee approval — it’s a strong signal that you’re a serious buyer. Estate agents and sellers take you more seriously when you have one in hand.

🏡 Why You Need One Before Falling in Love with a Property

1. It Tells You What You Can Afford

It’s easy to get swept up by a beautiful home that stretches your budget. A DIP sets realistic expectations and narrows your search to properties that are within reach. This helps avoid heartbreak and wasted time.

“One of the most common mistakes we see? Buyers browsing homes before understanding their true buying power.”

2. It Strengthens Your Offer

In a competitive market, sellers don’t just look at the amount you’re offering — they want to know how quickly and securely you can proceed. A buyer with a DIP is perceived as ready to go.

Many estate agents won’t even arrange a viewing unless you can show you’ve spoken to a mortgage adviser and obtained a DIP.

3. It Helps You Act Quickly

Properties can go under offer within hours of being listed. If you’ve already got your DIP, you’re in a position to act fast, make an offer, and move forward with the purchase without delay.

🧠 What’s Involved in Getting a Decision in Principle?

🔍 The Fact-Find: Your Financial Snapshot

To get a DIP, a mortgage adviser or lender will carry out a fact-find — a detailed review of your:

  • Income and employment details
  • Regular outgoings and financial commitments
  • Credit history and borrowing record
  • Deposit amount
  • ID and proof of address

This isn’t just form-filling — it’s a critical discovery process to ensure your application is sound and matched to the most suitable lenders.

“At Empreso, we treat the fact-find as a financial clarity session — even if you don’t proceed, you’ll walk away knowing more about your options.”

🧾 Credit Check (Soft or Hard)

Some lenders will do a soft credit check, which doesn’t leave a mark on your credit file. Others do a hard check, which is visible to other lenders. Your adviser will explain the implications before proceeding.

📈 What a DIP Includes

Once issued, your DIP will typically confirm:

  • How much the lender might lend
  • Over what term (e.g., 25 or 30 years)
  • What type of mortgage it is (repayment or interest-only)
  • Any basic conditions (subject to full application and valuation)

It usually remains valid for 60 to 90 days, and can be renewed or updated as needed.

🔄 What Happens After You Have a DIP?

With a DIP in hand, you’re in a strong position to:

  1. Begin viewing properties with confidence
  2. Make offers that estate agents and vendors will take seriously
  3. Prepare for the full mortgage application once your offer is accepted

It’s not the final step — but it’s the bridge between dream and reality.

🛠️ How Empreso Can Help

At Empreso, we take a holistic approach:

  • We offer a single fact-find that can unlock multiple services: mortgage, life insurance, protection, and even property finding.
  • Our AI-driven tools help match you to the most appropriate lenders faster.
  • Our advisers are trained not just to find you a mortgage — but to help you secure the right one with clarity and confidence.

We don’t just say “congratulations” when your offer is accepted — we stay with you until the keys are in your hand (and beyond).

👣 Ready to Take the First Step?

Before you get your heart set on a property, make sure your finances are ready to follow through.

👉 Book your free Mortgage Clarity Call today:
https://network.empreso.co/clarity-review

“A goal without a plan is just a wish.”
— Antoine de Saint-Exupéry

If you’re serious about buying, start with a plan. Start with a Decision in Principle. Let Empreso walk beside you every step of the way.

📥 Bonus: Download Our Free Mortgage Guide

Want to learn more about mortgages and the full buying journey?
👉 Click here to access our free resource

Alain Mbe
Author: Alain Mbe

Alain Mbe is the founder of Empreso, a purpose-led network helping individuals create, protect, and transfer wealth through property, finance, and legacy planning. With over two decades of experience in property investment and a background as a qualified mortgage adviser, Alain is passionate about empowering people to achieve prosperity with intention. He writes about property strategies, financial planning, and personal transformation—offering practical insights and actionable steps to thrive in today’s evolving economy.