Homebuyer report & solicitors question - have to be by provided by mortgage lender?

Midnight_Tboy

Hi all.

Long story short, we've just had an offer accepted on a house on Friday. For reasons too long to go into, we had to use the EA's mortgage broker to get the DIP (which was approved later in the day by telephone due to computer issues), but they have agreed to waive the broker fee....So I need to arrange to visit the EA in the next day or 2 to see the mortgage advisor again. I'm assuming its to sign the acceptance of the DIP or whatever the very next stage is in the process (first time buyer so not sure of exact order of these things right now)

Anyways, I was originally looking at getting a Homebuyers report and got a few quotes from some local companies online, which were in the region of around £250 or so.

Speaking with my parents however, they seem to think that we have to get the valuation (or homebuyer report) done by the lenders (which will be Nationwide). I've done a quick check and it looks like according to http://www.nationwide-intermediary.co.uk/lendingcriteria/products_and_fees/property_valuation it will be around £330 (unless the EA want to try and charge something extra on top of that too?)

Do you guys know if thats the case and we do have to use Nationwides service?

I'd be really grateful if you could also point out the order of the next steps I have go through. Being first time buyers its very confusing.

We are buying a 110k house with 70k loan and 40k deposit (20k which is going to be a gift from our parents)

I'm assuming it will be:
1) Sign /agree the dip (confirm in writing that there's going to be no broker fee for this)
2) Get the valuation/survey done
3) Get final mortgage application complete and hopefully approved
4) Get solicitor booked/hired (again - I take it this we can go through direct to the solicitor when the time comes, unless the EA are going to want to get involved in this step too
5) Have the contract sorted with agreements of whats staying and going
6) Transfer money via solicitor
7) Get keys and hopefully stress free from that point

Appreciate the help once again, this site is great

Thanks

edit : I've just read a tiny bit about this new MMR april 26th change, I hope our final application can be approved before this comes into effect, as I'm already worried about that part as it is!!

Yorkie1

A DIP only applies before you find a property. You're now looking at making the full mortgage application.

The lender will insist on a valuation being carried out for its own purposes by a surveyor of its choice to ensure that the property is worth enough for the amount of the mortgage. You have to pay for this and have no say in which survey company is used.

You then have to decide whether you want your own survey (you can't assume you can rely on the lender's valuation) and, if you do want a survey then a) what level and b) by whom. You will have the choice of instructing the lender's surveyor at an extra fee, or instructing your own one separately.

You need to locate your solicitor now. Ask colleagues or friends for recommendations. Suggest you avoid the EA's referral one. Check that the proposed solicitor is on the panel of solicitors for your lender.

The lender's valuation will take place before the mortgage offer is confirmed. Your solicitor will be doing searches at the same time (unless you choose to ask them to do no chargeable work until the mortgage offer is in, but that will cause extra delay).

At the same time, the seller will be preparing the Property Information Form and the Fixtures and Fittings Form. These will be sent to your solicitor and eventually on to you to consider.

The seller's solicitor prepares a draft contract with the details of the property, sale price, and seller / buyer. That is sent to your solicitor for checking.

When everything else has been done, you sign the contract and pass it back to your solicitor. The seller signs his own copy of the contract. The solicitors check proposed completion dates and, when everyone is ready to commit to the transaction, contracts are then exchanged (by phone). At that point you're beyond the point of no return.

Completion occurs, the seller moves out and you move in at a date of your choosing.

Midnight_Tboy

Thanks. Very detailed

I've done a quick search on my town and there's only 4 listed solicitors online. I'm sure there'll no doubt be some more smaller firms around. One of the 4 my mother used a long time ago in past( talking 20+yrs however), but recently my sister and partner used a different one buying their home. Unfortunately they're on holiday at moment so can't check reasons they went with that specific one, though have emailed on offchance get a reply.

Hopefully they offer some sort of fixed fee I guess. I'm inclined to ask for the solicitor to hold off doing anything that is chargeable until I've had the mortgage finally approved, though not sure how long it typically takes/delays (being gifted 20k from parents too so will no doubt have to provide letters and such to that effect). We currently rent, literally 3 doors away, so no rush from our side by way of having a roof over our head, but they are after selling quite quickly and know were a FTB, and of course I'd much rather reduce the risk of any hefty fees for the conveyancing should it all fall through

As the Homebuyers report from Nationwide appears to be £330, would the EA broker basically relay that charge, or do they try to add their own intermediary profit from that too?

Head about to burst with info trying to take in for when I speak to them next......sounds like I should have had a KFI or at least an IDD. The EA broker said they'd waive the broker fee when talking on the phone, so hopefully I'll see the IDD when I see them next confirming no fee on there.

Also, on the offchance their recommended solicitor happens to be the same as the one I was going to use anyway, is it a case of they'll just pass me their details, or do they try and get me to do everything via the EA, so becoming a potential stumbling block?

Yorkie1

If you decide to use the EA referred solicitor, bear in mind that the solicitor will have paid the EA a referral fee, which will then be recouped from what you pay them one way or another ... but you will deal directly with the solicitor and not via the EA.

I'd be surprised if there were only 4 conveyancing solicitors in your town. Did you look on here? http://solicitors.lawsociety.org.uk/

Get a written (emailed) quote from a couple to compare. Many will provide a fixed quote. It will include things for which the price won't vary i.e. search type fees, and their costs. Some solicitors will charge separately for completing a stamp duty form, photocopying etc - but that's not very good practice.

Midnight_Tboy

Thanks.

Truth be told, it was only a very simple google search on a tablet whilst visiting the parents....was the only ones I could see mentioned on several pages.

As I believe its going to be tomorrow directly after work that I'm asked to go see the EA, I guess I'll just say we have a solicitor arranged throug family. I'm guessing that it would probably not be best to mention a specific name to them unless its absolutely necessary, as if its one of their referring companies, they could potentially try and claim a referral anyway without me knowing (and so bumping up my costs)

Thanks for that link, it comes up with 206 results in a 25 mile radius (lots of duplicate companies of course).

Based on an approx 110k house and living in the North East, Teesside area, (assuming costs are relative to house price and area) could you please advise approximately what I should be looking at costwise in total for the solicitors fees as a fixed rate?