PLEASE READ BEFORE POSTING

Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.

How to prove funds?

figgyroo
figgyroo Posts: 103 Forumite
in House buying, renting & selling
We have accepted an offer on our house, and are currently looking for a house to purchase. The estate agents are all telling us when we offer we will need to prove funds. How exactly do we do that when the monies are coming from multiple sources i.e. equity from current home (sale price less outstanding mortgage), new mortgage and cash? Do we need to provide the memorandum of sale to prove the sale price, a copy of our current mortgage statement to prove how much equity we have in the house, a copy of a DIP for the new (bigger) mortgage, and a copy of our savings account balance?

Thanks in advance.

Comments

  • Guest101
    Guest101 Posts: 15,764 Forumite
    Typically " My solicitor can confirm I have the funding in place"
  • jonmoneybags
    jonmoneybags Posts: 311 Forumite
    figgyroo wrote: »
    We have accepted an offer on our house, and are currently looking for a house to purchase. The estate agents are all telling us when we offer we will need to prove funds. How exactly do we do that when the monies are coming from multiple sources i.e. equity from current home (sale price less outstanding mortgage), new mortgage and cash? Do we need to provide the memorandum of sale to prove the sale price, a copy of our current mortgage statement to prove how much equity we have in the house, a copy of a DIP for the new (bigger) mortgage, and a copy of our savings account balance?



    Thanks in advance.

    dont give anything to the EA, cheeky f88rs
  • figgyroo
    figgyroo Posts: 103 Forumite
    ok, thanks
  • daivid
    daivid Posts: 1,230 Forumite
    First Post First Anniversary Name Dropper
    I don't know if I am in a more trusting part of the country but the estate agent asked how I would purchase, I said mortgage and I had an agreement in principle, and it was left at that. There may be a risk that they could try to bump prices if they know you have a lot more than your offer...
  • figgyroo
    figgyroo Posts: 103 Forumite
    Unfortunately the market is really competitive where I live as there are lots of buyers and a shortage of houses. Most properties are having open days, best and final offers etc. so all of the EAs seem to be asking for this info.
  • boinkit_2
    boinkit_2 Posts: 7 Forumite
    If they know your max. budget, then they might be inclined to get you to spend it all. For this reason try not to tell them too much, and don't get a mortgage through someone that they recommend, or that works out of their offices.
  • sn1987a
    sn1987a Posts: 453 Forumite
    Name Dropper First Anniversary First Post
    When I made an offer, I gave the EA the DIP and a copy of one of my bank accounts so they could see I had the total amount I was offering, but they couldn't see the extra savings I had for stamp duty, repairs etc.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.1K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.2K Work, Benefits & Business
  • 607.9K Mortgages, Homes & Bills
  • 173K Life & Family
  • 247.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards