Get dip before looking at houses/ making an offer?

G_M

snowbrow wrote: »

I have martins latest guide thx but it just didn't answer this particular question.

Well I'm sure his guide is as fully comprehensive on all things to do with house buying as any book, so you'll be fine.

See you here in 2 weeks with your next series of questions....

londonmaiden

I would advise getting one beforehand but it's not crucial, if you are up against a lot of other people making offers then you may be asked for evidence of your DIP, I think most are valid for 6 months, also bear in mind that mortgage rates are changing monthly and sometimes weekly depending on the lender, we have a DIP with Nationwide but the rates changed on Friday and we are now £15k down on what we could borrow.

Shoey1610

We got one before looking at houses but only so we had an idea of budget and whether we would be accepted. However we were looking for 95% mortgage and the criteria is tight so I just wanted that reassurance.

In the end we applied for 30k less than our DIP, and we had told estate agents that we had one but they never asked to see it and we didn't offer it, just told them our rough price range.

londonmaiden

In today's market when you are up against 5-10 people bidding on one house, the vendor needs to know you are proceedable otherwise they won't be interested. if you have a DIP to hand that you can email to the EA with your offer then it will help you no end. Especially as a FTB as you are competing with people with larger deposits than you which unfortunately makes them more desirable as a potential buyer.

Gordon_Hose

We called the bank and asked how much they'd lend us, they took some basic Q's and gave us a figure. We then decided what we could really afford (about 80k less than the figure the bank had given us! lol) and went out looking for houses. Made an offer on a house at £172k, had that accepted then applied for the HTB - MG mortgage and got accepted.