Is this ok?

Seanc

Hello all,

We are first time buyers and have been looking for around two weeks, last weekend, we found a property that we both liked. However, we hadn't made contact with any mortgage companies.

We have worked out our budget and the likely cost of a mortgage using online tools, and of course how much we can borrow. (only using online tools.)

My question is this, is it is ok to put in a bid, even though we haven't gone through a formal mortgage application? - and does it matter if we don't get accepted or maybe need to go to several banks/BS to get a mortgage. Thus taking up more time? Im sure this is frustrating for a seller, but is this the norm?

The reason I ask is that I spoke to my bank today, who said the next time some one is available to talk about a mortgage application is a week tomorrow!

Thanks,
Sean

LuSiVe

I doubt they'll take your offer seriously without an agreement in principle.

You don't need to see your bank though (probably best not to go through them).

Seanc

Sorry, I should have said that, yes, I could go to a different bank, and have done.

As I was speaking to a mortgage adviser with another bank and they said once I get a bid accepted they would go ahead with an application. They did say that they thought there would be a good chance of a mortgage acceptance at the price we are bidding and our current earnings. - on this basis, should I put in a bid? or should I apply for an agreement in principle first?

DRP

Seanc wrote: »

Sorry, I should have said that, yes, I could go to a different bank, and have done.

As I was speaking to a mortgage adviser with another bank and they said once I get a bid accepted they would go ahead with an application. They did say that they thought there would be a good chance of a mortgage acceptance at the price we are bidding and our current earnings. - on this basis, should I put in a bid? or should I apply for an agreement in principle first?

i got an AIP sorted from C&G over the phone and they emailed it to me straight away...

There's no real reason to delay your offer as by the time the vendors accept your offer, you willl have had several rounds of to-ing and fro-ing anyhow...

pops5588

I am going through the process myself at the mo. If you put in an offer and it gets accepted, the EA can only send out a memorandum of sale once they have confirmation of your AIP anyway. Without this, you wouldn't get very far along in the process. Its best to have as many things lined up and ticked off as possible ie. solicitor, AIP etc.

Having said that, we did put in an offer on the house before we had had our AIP through, but we checked with the EA first whether this would be ok (we had done all we were supposed to and were just waiting on confirmation from our broker so the AIP was on the way). Our broker also told us that smaller independent EAs are more likely to accept an offer on a property without an AIP in place than the national big wig EAs like Connells. So it isn't always a dead set no but I would definitely recommend getting your ducks in a row first. We had a very stressful mad rush trying to get everything organised.

Seanc

Thanks guys very helpful.

I will contact my broker to get an AIP sorted, if this property is sold before my AIP is in place (which is probably the case in my area as properties seem to go very fast), do I have to go through an application process again? and does this matter?

Also, with regards to solicitors? what could I arrange before (getting my ducks in a row..) as I know I need them after my bid is accepted, what could I do beforehand?

hazyjo

An AIP is more a general thing, not in relation to one specific property. Not sure how long they are usually valid for, but am guessing around 6 months.

You will then have to go through a formal mortgage application for a set amount for a specific property. Having an AIP does not guarantee you will get the mortgage.

Just get some solicitors quotes. Not much you can do before having an offer accepted apart from choosing one you'll hope to use.

Don't be persuaded to use anyone associated with the EA (mortgage broker, solicitor/legal services). Generally, some will push - usually to get the commission.

Jx

pops5588

Seanc wrote: »

Thanks guys very helpful.

I will contact my broker to get an AIP sorted, if this property is sold before my AIP is in place (which is probably the case in my area as properties seem to go very fast), do I have to go through an application process again? and does this matter?

Also, with regards to solicitors? what could I arrange before (getting my ducks in a row..) as I know I need them after my bid is accepted, what could I do beforehand?

AIP shouldn't take that long as long as you have everything to hand. Also they are not property-specific so don't worry that you will have to do it all over again. The lender will only become interested in the property once they are about to commit themselves to giving you the money and want to check it isn't about to fall to the ground.

All you need to know solicitor-wise so far (as far as i am aware in my very limited experience) is what costs you will incur by using their services. Worth getting a breakdown of costs from your solicitor if you already have one, and if not the advice I received on here was to get a quote from 3 different solicitors to compare cost (although cheapest isn't always best).

We went for one that was a bit pricier but right on our doorstep for convenience and with a really good reputation for service.

Seanc

Thanks again, all this is very helpful!

So even though I don't have an AIP, when I spoke to the broker, as much as he is allowed to say "yes you will get an a mortgage" he said that me and my partner should get a mortgage. although, we just did a pre-mortgage question sheet, nothing official with a particular BS. obviously this depends on a lot more then what he asked.

I do have a quote from one solicitor, I'll find some more, thank you for this advice.

nakiwala123

AIPs are pretty quick to get and it atleast allows you to understand what level of borrowing a particular will lend you. They are normally valid for 3 months. If I were you I would get one, especially if you have any defaults, etc

From reading threads on here, it seems to be that Nationwide AIPs are more thorough compared to Halifax because they carry out a credit search for AIP.

Seanc

Ok, thats great, I am meeting with Halifax tomorrow, I will ask the adviser for an AIP or what they recommend. Although I don't have any defaults, I am self employed, so Im not the easiest customer they've had this week, so as a previous poster said, better to get my ducks in a row.

This is one big big learning curve, so thanks to all on here that have posted.