First time buyer confused.

dimension7

hi,
I have been looking at properties in my area and I decided to go to the local estate agents to ask if I could view them. They sat me down and took all details of me like my past addresses, salary, monthly income etc. Then they asked me to come back with Payslips, driving licence etc. They said they would need these to get an agreement in principle for me.

I then contacted my local bank and they gave me a verbal agreement in principle after hearing my details over the phone.

So i'm now confused, why does the local estate agent need additional details like payslips etc? I don't want the agents running hard credit checks on me as it will effect my rating, besides I haven't found got a house yet and not sure if I will want to buy the homes available for what I can afford etc.

Do I need to get all this done to even view a house?

How can I make sure they wont run a hard credit check on me if I give them all details? (I have asked them not to)

kingstreet

dimension7 wrote: »

Do I need to get all this done to even view a house?

No. You don't. Tell the agent you do not wish to use its mortgage service and you do not want any credit checks carried out at this time.

Your typical national estate agent's mortgage service;-

- has a limited lender panel
- charges a fee
- uses only lenders which refer work to the agent's surveyors
- has a lucrative conveyancing service
- has a single tie for protection/insurance.

No benefit to the consumer in using them whatsoever...

dimension7

They say if I don't have an agreement in principle what is the point of me viewing houses?

The thing is that the bank I spoke with has already made an offer however it is verbal. I spoke with their phone adviser. Do i need something in writing that I can show to the estate agents?

I am also quite fearful that given all the information I have told them they would have already run soft checks on me and how this will effect my credit report.

I feel more comfortable taking advice from a bank (i can research rates online and approach the best one)

Am I being over-cautious?

ACG

Its none of their business if you have an agreement in principle...all your doing is viewing.
when you make an offer then they may wish to see proof of the deposit and/or an agreement in principle - in which case you can use their service if you wish, or you can go to your bank or you can consult a mortgage advisor of your choice.

Your bank has details of your pay already so they may have a system to do AIPs over the phone. Also, you cant research all providers on the internet, some lenders only deal direct with advisors and some make certain deals available to advisors only....likewise they also may have deals that are only available if you go to them direct and do not use an advisor.

Good luck but with a pushy estate agents like that, i would be inclined to avoid them like the plague.

kingstreet

Over cautious? No. You have a right to place your business how you choose.

You do not need a written agreement in principle. It suits their way of flogging their expensive, poor quality services to suggest you do.

They can only get an AIP with a "soft footprint" by carrying out the check with one or two lenders, Halifax particularly. Why they would do that, knowing there's an increased chance of you being rejected at full application I don't know. They are more likely to run it with a lender doing a full check.

If you don't want to use their mortgage service, it is your right to say no and refuse it.

Being an independent or whole market broker I'd suggest you talk to another broker offering a similar service near to you, as well as your own bank or other direct lender. The more the merrier, as far as I'm concerned. Just don't have them all doing credit checks, as you seem to understand the risks involved in doing so.