Decision in principle

As we start to push a few more deals through the network, we are noticing that some investors are taking as long as a day to get a Decision in Principle (DIP) from a lender, others are horrified to note they cannot get a DIP with certain lenders as their criteria’s tighten!

Until a decision is returned everyone else that’s interested in the deal is on tender hooks wondering if they’ll get a bite at the cherry.

We have given this some thought and decided that the fairest way to allocate a deal is to give it to the first person who has a DIP in place and pays the reservation fee.

The easiest way to put yourself in a prime position to secure a property, virtually immediately, is to obtain a Decision in Principle based on 75% LTV on a typical £120,000 value (not on a specific property, just on the amounts). The DIP is valid for 3 months and can be allocated to a property as long as the value is the same or lower than the original DIP (in this case £120k).

Obtaining a DIP before allocating it to a property is not compulsory but looking at our allocation process anyone going for a property that already has one in place will always beat the investor whose starting point is submitting an application.

Happy hunting!

Alasdair Macdonald
Smart Property Investment Network Ltd.