Dream home how to delay deposit?

debtfreebyxmas

I hope you can help...

We have found our dream home.
Ridiculously underpriced.
We are close with deposit...
We have 7500 and it would take us 8 weeks to get the other 2500 we need.
We view formally next week.

Do we need to prove full 10k before we an apply for full deposit. Or would we only need it when we xchange.
We have AIP.
Could we put in a v low offer to buy some time haggling.

As you can probably tell I am a first time buyer

Any ideas would be appreciated?

Kayalana99

Have you taken into account all the other fee's? I.e Solictors fee's, *stamp duty if applicatable* moving fee's end of house fee's .. (we just got hit with a £150 el/gas bill from our old house for example lol)

FTB renting already? You need to consider how much notice you need to give and if they were to over lapse if so.

You probally won't need to prove it untill the solictor asks for it unless the mortage company ask about it but that never happened with us. I don't think you'd have a problem with solictors/seller it would just be how easy going your mortage company is.

*Just to add* You don't pay the deposit untill you exchange contracts or just before as solictors will want the funds cleared before they let you sign.

kingstreet

What about the fees and other costs you'll need to cover? Do you have the money for them?

Excited13

I'm 3 months into buying a house and have a full mortgage offer and still haven't had to show anyone proof of my deposit. I never realised how relaxed people are about seing proof. My bank approved my mortgage without the funds being in my account.

I think your issue may be if the process is moving quicker than mine is or your solicitor/mortgage provider are more on the ball.

Fire_Fox

If you don't even have your deposit together you are not in a position to view, put in an offer nor purchase a property.

You need a mortgage in principle for most vendors to take you seriously, that means demonstrating to the lender that you have a 10% deposit plus all the costs associated with buying (legals, mortgage, application, survey). If you have any sense you will also have money set aside for decorating, furniture, three months mortgage payments in case the worst happens (illness, injury, redundancy, unplanned nightmare pregnancy), general rainy day savings.

Chill out, save up, your dream home will still be on the market or another dream home will come up in the fullness of time. People who fail to save up properly or overstretch are the ones that end up in debt or even repossessed.

Kayalana99

Is thier anyone in the family that can help you out temporary? It *seems* like you are in a good position to pay them back fast but Fox has also pointed out more fee's that you would need to think about...

Your looking between £1000-£2000 extra I reckon on top of your deposit (thats without the mortage extra savings ofc :-) )

debtfreebyxmas

We should have additions money or fees in the bank in June. The house we have seen is such a good investment and will not be on the market for long at all. Could I view, put an offer in requesting completion in three months?

Dan-Dan

debtfreebyxmas wrote: »

We should have additions money or fees in the bank in June. The house we have seen is such a good investment and will not be on the market for long at all. Could I view, put an offer in requesting completion in three months?

You could...but only an idiot would remove their property from the market on that basis

Ciderarmy1987

What about the house makes it your dream home? Are you sure that it is as much or a bargain that you think it is? How much research have you done? Have you viewed many other houses to compare what you can get for your money

If you havent actually viewed the property yet I think its quite premature to say it is your dream house! It could be riddled with damp, have an odd lay-out, need a new roof, a complete re-wire.

Not always, but more often than not, there is a reason for a house being listed really cheap, and to be honest I would find it more worrying if I couldn't see what this reason was!

Wobblydeb

Fire_Fox wrote: »

that means demonstrating to the lender that you have a 10% deposit plus all the costs associated with buying (legals, mortgage, application, survey). If you have any sense you will also have money set aside for decorating, furniture, three months mortgage payments in case the worst happens (illness, injury, redundancy, unplanned nightmare pregnancy), general rainy day savings.

I agree with the rest of the post, but "demonstrating to the lender that you have a 10% deposit" doesn't sound correct. We were never asked to prove our deposit for our recent (post office) mortgage application. The Lender does not care, as long as the mortgage value is the agreed % of the purchase price. Our solicitors were the ones who wanted proof of funds in advance of paying them across for a) money laundering purposes and b) to be certain that on completion day the total value (deposit + mortgage) would equal the price plus all costs. They only asked for that as we got close to completion - many weeks after our offer was accepted.

Ciderarmy1987

Wobblydeb wrote: »

I agree with the rest of the post, but "demonstrating to the lender that you have a 10% deposit" doesn't sound correct. We were never asked to prove our deposit for our recent (post office) mortgage application. The Lender does not care, as long as the mortgage value is the agreed % of the purchase price. Our solicitors were the ones who wanted proof of funds in advance of paying them across for a) money laundering purposes and b) to be certain that on completion day the total value (deposit + mortgage) would equal the price plus all costs. They only asked for that as we got close to completion - many weeks after our offer was accepted.

I think to be totally honest the only people that should really care about if you have the deposit, but most people will refuse to show them proof of deposit.

Your lender and solicitor will not lose out if you cant get the funds together, the lender just wont lender and the solicitor will still get paid.
The lender is protected against you not having the money as they know you cant buy the house without