Agreement in principle - is it enough?

huntinghouses

I'm a first time buyer looking to buy and I have been thoroughly confused today. After looking around the MSE site I have spoken to London and Country mortgage brokers and they have sent me a decision in principle. The advice that they gave was that I could now go ahead and make an offer on a house that took my fancy.

So far so good.

An estate agent has phoned me to tell me of a house that is coming on the market, but the owner wants a quick sale and doesn't want it published on the internet. So this saturday there is a viewing day. The thing is, the EA is saying that I need proof that I have the funds before I can view and that the decision in principle that I have (which, as far as I can tell, isn't based on a credit check) isn't enough.

I've spoken to L&C (the broker) again and they've said they won't do a more detailed check without knowing details about the house, how much we've offered etc. But I won't know if I'm putting in an offer till I've seen it.....

So. Do EAs normally ask for more than an agreement in principle before they will allow a viewing? :undecided:

I hope this makes sense, any help appreciated, the EA is trying to get this set up for this saturday but I've no need to rush into anything

nick12

It's normal for EAs to ask for proof of deposit as a part of assessing your proceedability. I assume this is what they're asking (rather than expecting a mortgage to be in place).

huntinghouses

It could be that, but the EA definitely mentioned a credit check and more than just a comparison against the lenders criteria.

I've looked around the forum and some posts seem to be saying that I need an agreement in principle from a specific lender that has involved a credit check?

enginesuck

If you have been truthful with L&C their DIP is as good as, give your broker a bell and they will call the EA and tell them as much, at least mine did ! L&C like you to have offered before they match you to a lender because they can tailor the application to suit, it saves having to scattergun your CR.

Cat2011

Sounds like the seller is looking for a cash buyer.

huntinghouses

Thanks for the replies. These are my first tentative steps into this world and I'm war of getting taken in. I've done the research that I can and I'm working on the basis that my L&C agreement in principle is enough for now.

So, I'll phone the EA in the morning and try and reassure them that I'm a low risk (or maybe ask my broker to do it )

Yorkie1

I suspect you'll find that the EA wants you to see their in-house person ... one of their little tricks ...

huntinghouses

The EA mentioned their in-house "independent" financial advisor who happens to have a desk in their office. Can they refuse to let me view if I haven't shown them what they want?

The thing is that this is one of the largest and highest profile agencies in town and often has lots of promising houses so I want to build a good relationship with them but I have no intention of being taken for a mug.

betmunch

I have to disagree I'm afraid.

If the L&C DIP doesnt include a credit check its completely useless.

All the EA is trying to do is determine that you have had your credit checked and that you are likely to get your mortgage.

I wouldnt use the in house advisor, thats asking for trouble, but use someone who will actually do a proper credit check.

huntinghouses

The DIP is useless? So I have to apply for a mortgage and have a credit check before I can see a house that I might be interested in?!
L&C won't make an application until I've actually seen a house and put an offer in, that seemed sensible to me.
Should I ring a second broker, approach a bank directly.....?

GMS

L&C have no idea if you will pass credit scoring or at what level. A proper DIp is needed to ensure you actually pass the lender score. Many lenders will allow amendments without re-scoring so often worth finding the most appropriate lender and getting a DIP