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    • muffle123
    • By muffle123 10th Oct 16, 10:29 AM
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    muffle123
    Estate agent requesting Proof of deposit/ mortgage agreement before offer accepted
    • #1
    • 10th Oct 16, 10:29 AM
    Estate agent requesting Proof of deposit/ mortgage agreement before offer accepted 10th Oct 16 at 10:29 AM
    Hi

    We are first time buyers and looking to make our first offer on a house. I called up the estate agent this morning to make the offer and they told me that they would need us to send in proof of deposit and evidence of our agreement in principle before they made the offer to the sellers. Is this common practice? I thought you would only need that after the offer was accepted - I can provide it but cautious about showing that information to the estate agent/ seller now and having them decline our offer because they think they can get more money from us.

    Thanks in advance for any advice!
Page 1
    • Stevie Palimo
    • By Stevie Palimo 10th Oct 16, 10:34 AM
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    Stevie Palimo
    • #2
    • 10th Oct 16, 10:34 AM
    • #2
    • 10th Oct 16, 10:34 AM
    Seems strange that the EA is asking for this unless they have been messed about by lots of people in which case drafting an email together with a screenshot showing the money in the account is not hard to do if you wish to be taken seriously.
    " I refuse to censor myself because it may offend someone. If you don't like me that's ok, I don't need your approval. "
    • HouseBuyer77
    • By HouseBuyer77 10th Oct 16, 10:39 AM
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    HouseBuyer77
    • #3
    • 10th Oct 16, 10:39 AM
    • #3
    • 10th Oct 16, 10:39 AM
    In my (very limited) experience it seems to vary from EA to EA. May also depend upon the vendor.

    Nationwide will do you an online AIP in minutes. Can you move money around in accounts so you have one with the precise amount required for the deposit? You could use that and a nationwide AIP for precisely what you need to give them the evidence you can afford the offer without having to reveal how much higher you could go.
    • PThome
    • By PThome 10th Oct 16, 10:46 AM
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    PThome
    • #4
    • 10th Oct 16, 10:46 AM
    • #4
    • 10th Oct 16, 10:46 AM
    It happened to me exactly the same few months ago when we where looking for our first house. I have the same opinion as you, I didn't want to give this information to the EA. So I spoke with my mortgage adviser and she agreed that they should't ask this information. So she called them and spoke to them confirming that she have seen the proof of deposit and wrote an email confirming that we have the deposit and she was confident that we wouldn't have any problem getting a mortgage. So they accepted this has proof and the best part was our offer was accepted (even not being the best one!)

    Good luck!!
    • chickenmama
    • By chickenmama 10th Oct 16, 10:47 AM
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    chickenmama
    • #5
    • 10th Oct 16, 10:47 AM
    • #5
    • 10th Oct 16, 10:47 AM
    From the other side of the coin I understand why the EA and the vendor want the information... having a FTB pull out from buying our house two weeks down the line after offering when they discover they can't afford to get a mortgage after all, it proves that the affordability is there. I'd certainly be more cautious next time.
    • hjd
    • By hjd 10th Oct 16, 10:49 AM
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    hjd
    • #6
    • 10th Oct 16, 10:49 AM
    • #6
    • 10th Oct 16, 10:49 AM
    My son has just bought his first flat and was faced with the same request.
    We just let the solicitors have evidence of the money/mortgage and she confirmed it directly with the agent.
    • eddddy
    • By eddddy 10th Oct 16, 11:11 AM
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    eddddy
    • #7
    • 10th Oct 16, 11:11 AM
    • #7
    • 10th Oct 16, 11:11 AM
    As you suggest, it would be more usual for the EA to want to see this after an offer is accepted.


    But I can also see that if the EA calls the vendor and says

    "Muffle123 has offered £X, they're a FTB, we've seen evidence of their deposit, and we've seen their AIP - so they look like really strong proceedable buyers"

    ... it might make the vendor slightly more likely to accept your offer. But who knows?
    • muffle123
    • By muffle123 10th Oct 16, 11:14 AM
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    muffle123
    • #8
    • 10th Oct 16, 11:14 AM
    • #8
    • 10th Oct 16, 11:14 AM
    Thanks for the replies. I understand that they want to have confidence we won't pull out. I have the AiP from our bank so could provide that. The deposit is more tricky to get proof of within the next day as its in a few different accounts. It is a large amount as we have inherited money we are using for part of the deposit but some of that wont be in our account for another couple of weeks - the rest comes from our savings in a few different accounts. We will certainly have it in plenty of time to pay if the offer is accepted but it makes it harder to evidence now! We also don't have a solicitor yet - we have one lined up but haven't instructed them to act officially for us yet as we thought we wouldn't need them until after an offer has been accepted.

    We really like the property and don't want to miss out on our offer being put forward to the seller but as its our first time we want to make sure we are doing things correctly.
    • PlaysNicely
    • By PlaysNicely 10th Oct 16, 11:14 AM
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    PlaysNicely
    • #9
    • 10th Oct 16, 11:14 AM
    • #9
    • 10th Oct 16, 11:14 AM


    We had similar but from the other side of things ... after a really enthusiastic buyer viewed our house twice, the EA phoned us to say there was 'an offer in progress' but they were not going to put anything forwards until they'd checked the finances of the buyers. I thought this was because they are cash buyers ... the EA didn't even tell us what the offer was until they had this information!

    Since accepting their offer, when making offers for our own purchase I've fully expected to be asked to provide similar information (as we're going to buy with our equity and not get a mortgage). However, of the two different agents we've made offers through (one purchase fell through very quickly) neither have asked for any financial verification, only checked with our EA that we have a buyer and are in a position to proceed.

    So there certainly seems to be no hard and fast rules, just each EA to their own. I'd certainly proceed in the way suggested of getting solicitor or mortgage co to verify your finances, I wouldn't be revealing all to the EA!

    Good luck with it all! PN x
    • cloo
    • By cloo 10th Oct 16, 11:16 AM
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    cloo
    It's not standard practice but it's fairly common - I think more people are failing to secure mortgages than used to be the case, even when they look good on paper, which is why agents check. It's happened to some people I know, even at offer stage, although more usually after acceptance.
    • mattk_180
    • By mattk_180 10th Oct 16, 11:18 AM
    • 262 Posts
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    mattk_180
    As the above have said, it is quite common now to make sure you can afford what you are offering to save people wasting their time.


    You could always ask the bank or your solicitor to write something up confirming you can afford what you are offering instead of giving full information of how much you are able to get?
    • eddddy
    • By eddddy 10th Oct 16, 11:36 AM
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    eddddy
    It is a large amount as we have inherited money we are using for part of the deposit but some of that wont be in our account for another couple of weeks...
    Originally posted by muffle123
    Hmmm... This is exactly the sort of thing that will worry EAs and vendors a lot.

    If you've already mentioned this to the EA, that may be why they're taking a firm stance.

    I expect the EA has dealt with many buyers who say this - and then the inheritance takes much longer than expected to arrive, is not as much as expected, or never arrives at all.
    • pops
    • By pops 10th Oct 16, 11:51 AM
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    pops
    Hey

    From my recent experience with at least 4 different EA's. All of them have asked for proof of Deposit and an AIP before passing an offer over to the vendor.

    The worst of which were Entwistle Green, who forced me into booking an appointment to "confirm my financial" validity to make the offer, when in actual fact they just wanted to see if they could direct me towards their mortgage advisors and conveyances. They tried to apply a lot of pressure in this case, even passively implying that by going with their MA and conveyance would as a consequence make things go through quicker.

    I'd take what they say with a pinch of salt and confirm with them on the phone that you already have an AIP and are very qualified to make an offer.
    • moneyistooshorttomention
    • By moneyistooshorttomention 10th Oct 16, 12:22 PM
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    moneyistooshorttomention
    When I sold my last house my EA checked the FTB that wanted it had deposit and a mortgage agreed. They duly came back to me and told me exactly how much deposit my buyer had and where it had come from and who the mortgage was arranged with.

    Admitted it was an FTB house (2 bedroom terrace) and so the risk of having an inexperienced buyer being rather over-optimistic was higher.

    Knowing that that was all "present and correct" did incline me towards that buyer rather than the one that was conducting a bidding war with them (ie a BTL investor).

    I suspect my EA was biased towards my accepting a home-owner, rather than an investor, too and hence keener on getting this info. from them.
    The unexamined life is not worth living.
    • Small Yeti
    • By Small Yeti 10th Oct 16, 1:54 PM
    • 41 Posts
    • 73 Thanks
    Small Yeti
    We had the same thing. I didn't really want to provide the information because, like you, we had a chunk of a deposit and I worried they would use this information to push our offer up. But to be fair they just wanted to check we had the finances in order. As soon as we provided the proof our offer was accepted. It's not pleasant but I understand it means they are not accepting offers from people who might not be able to cover the purchase.

    Good luck with your offer.
    • cjdavies
    • By cjdavies 10th Oct 16, 2:05 PM
    • 1,724 Posts
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    cjdavies


    But I can also see that if the EA calls the vendor and says

    "Muffle123 has offered £X, they're a FTB, we've seen evidence of their deposit, and we've seen their AIP - so they look like really strong proceedable buyers"
    Originally posted by eddddy
    Part of me sees
    "Muffle123 has offered £X, they're a FTB, we've seen evidence of their deposit, and we've seen their AIP - they can afford more if you wish for them to increase their offer"
    • kilby_007
    • By kilby_007 10th Oct 16, 2:13 PM
    • 445 Posts
    • 237 Thanks
    kilby_007
    If you want to complete the sale quickly and get the EA on board I find that sending a copy of this information along with your offer does help. If the house has been on the market for a while it's not so important but if you want your offer to be accepted and there's a lot of interest it helps to be forthcoming. Having said that, I did that this morning and we're still waiting to hear back...
    • eddddy
    • By eddddy 10th Oct 16, 2:23 PM
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    eddddy
    Part of me sees
    "Muffle123 has offered £X, they're a FTB, we've seen evidence of their deposit, and we've seen their AIP - they can afford more if you wish for them to increase their offer"
    Originally posted by cjdavies
    I'm not convinced.

    The EA just wants the property sold. The result of the above strategy might be that the EA has to spend an extra 2 days 'haggling' backwards and forwards - in order to get an extra £5k out of the buyer.

    So the EA earns his firm an extra £75 for 2 days work - that's not very cost efficient. (Or even worse the buyer gets the hump during the haggling and walks away.)

    The EA would probably prefer the vendor accepted the first offer, so that the EA could then concentrate on selling other properties.
    • Retrievermomma31
    • By Retrievermomma31 10th Oct 16, 3:42 PM
    • 19 Posts
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    Retrievermomma31
    This is completely normal -if you were a seller wouldn't you want to have solid proof that the buyer about to make an offer on your house had the sufficient funds and had an AIP?
    Unfortunately you can't just take someones word for it.
    House for sale month: 4
    • Brightspark87
    • By Brightspark87 10th Oct 16, 3:43 PM
    • 1,408 Posts
    • 3,612 Thanks
    Brightspark87
    we were asked for this as the seller didn't like us - nothing to do with agents. We provided and she said our 20% wasn't sufficient deposit.

    She ended up accepting an offer of nearly £20k less than ours 6 months down the line.

    The agent was embarrassed on her behalf.
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