Buying a repossessed house

jhe

we put a large deposit down,we had a aip and the estate agents asked to see it and photocopy it, and wanted to see and photocopy proof of funds/ deposit, if the vendors accept your offer mario they will be starting from scratch again.you will have to have surveys done before mortgage offer is definite and surveys often dont value the house at the price you are offering. maybe this is why your offer was declined

mario75

no
i had 2 appoitment with 2 independent advisors and both said that having 15% is a good start like a first time buyer,we will see.

johnson293

mario75 wrote: »

no
i had 2 appoitment with 2 independent advisors and both said that having 15% is a good start like a first time buyer,we will see.

Sorry, does that mean you don't have a mortgage agreement in principal?

If not, this could be why you aren't being taken seriously as a buyer, and your offer(s) aren't being passed on.

If you do intend to go buy with a mortgage, you need an offer in principal, before you make any offers on houses, so you are showing the EA that a lender is prepared to offer to lend you the money - not just what an independant financial adviser tells you.

mario75

i have got one from halifax,ea has got a copy of it so this is not a problem as well.

mario75

jhe wrote: »

we put a large deposit down,we had a aip and the estate agents asked to see it and photocopy it, and wanted to see and photocopy proof of funds/ deposit, if the vendors accept your offer mario they will be starting from scratch again.you will have to have surveys done before mortgage offer is definite and surveys often dont value the house at the price you are offering. maybe this is why your offer was declined

jhe
so you are saying that survey i should do now even when i dont havr final decision about my offer ?

johnson293

mario75 wrote: »

jhe
so you are saying that survey i should do now even when i dont havr final decision about my offer ?

No, once your offer is accepted, you can start instucting solicitors and carrying out surveys. This can be doen when you have a mortgage offer in principal.

Following the results of the survey and the valuation it makes, the mortgage lender will then decide whether to give a formal mortgage offer, or not.

So you may have to incur solicitors fees and survey costs, before the bank formally offers you the mortgage. Also remember, that with a repossession, up until exchange of contracts, anyone can come in with a higher offer. So you could spend money on solicitors and survey(s) and then be outbid at any stage until exchange.

I think the point jhe was trying make, is that you could place a higher bid that will be accepted, but then after the survey, the valuation of the property may not be as much as you have bid, so the formal mortgage offer may not meet your accepted offer price. After an offer in principal, the formal martgage offer can be reduced following survey results.

That is the gamble banks have to weigh up when decideding whether to accept a higher offer with a new buyer - especially with a mortgage, if they already have a buyer undertaking surveys, etc and proceeding ok.

jhe

hi mario. johnson 293 explained things clearer than me. yes you have to have your offer accepted,then inform your bank, who will instruct surveyor to value the house, this you have to pay for wether you eventually complete on the house or not. if the survey comes back saying the house is not valued at what you offered the vendors are very unlikely to drop their price, if the valuation comes back at what you have offered you then should get the mortgage offer[which normally involves a set up fee] and solicitors become involved. if at any time somebody jumps in with a higher price that you cant or dont want to better you will lose all the money involved so far.

mario75

jhe wrote: »

hi mario. johnson 293 explained things clearer than me. yes you have to have your offer accepted,then inform your bank, who will instruct surveyor to value the house, this you have to pay for wether you eventually complete on the house or not. if the survey comes back saying the house is not valued at what you offered the vendors are very unlikely to drop their price, if the valuation comes back at what you have offered you then should get the mortgage offer[which normally involves a set up fee] and solicitors become involved. if at any time somebody jumps in with a higher price that you cant or dont want to better you will lose all the money involved so far.

right now i am more clever than yesterday:jthanks all of you
just want to know about bank choice. if i have done AIP in halifax can i change the bank,i have found good offer for ftb from yorkshire,nationwide..and is it true that each time i have acces to my bank score , the score is lower?hopefully you know what i mean

jhe

yes think it leaves a footprint every time you apply for loans. and you can change your bank. good luck

johnson293

mario75 wrote: »

right now i am more clever than yesterday:jthanks all of you
just want to know about bank choice. if i have done AIP in halifax can i change the bank,i have found good offer for ftb from yorkshire,nationwide..and is it true that each time i have acces to my bank score , the score is lower?hopefully you know what i mean

Yeah - I got an AIP from my current lender at the time who was C&G, and that was what I had when I made my offer(s) on the house.

However, Once my offer was accepted, the mortgage advisor at the EA said she could get me a better deal, so I let her look through her system, and I ended up taking a slightly better deal with Abbey instead.