When applying for a mortgage, one of the first steps is to obtain an agreement in principle (AIP) from a lender. This is a pre-approval that confirms how much you could potentially borrow for a home loan. However, many people are unsure whether they need to provide bank statements during the AIP process.

The short answer is that it depends on the lender`s requirements. Some lenders may ask for bank statements as part of the AIP application, while others may not require them until later in the mortgage application process.

So why might a lender ask for bank statements during the AIP stage? The purpose is to verify your income and expenses to ensure that you can afford the mortgage repayments. By reviewing your bank statements, lenders can see your income, regular expenses, and any other financial commitments you have, such as credit card payments or other loans.

Additionally, bank statements can help lenders to identify any potential issues that may impact your ability to make mortgage payments. This could include sudden drops in income or large outgoings that could affect your ability to meet your mortgage obligations.

If a lender does request bank statements during the AIP process, it`s important to provide them promptly and ensure that they are accurate and up-to-date. Providing incorrect or incomplete information could delay the process or even result in a rejection of your application.

It`s also worth noting that even if a lender doesn`t require bank statements during the AIP application, they will likely ask for them when you progress to the full mortgage application stage. It`s therefore a good idea to have your bank statements ready in advance to avoid any delays in the application process.

In summary, whether or not you need to provide bank statements for an agreement in principle will depend on the individual lender`s requirements. If they do ask for bank statements, it`s important to provide them promptly and accurately to ensure a smooth application process. And even if they don`t request bank statements during the AIP process, it`s likely that they will ask for them later on in the mortgage application process.