Solicitor contract or Mortgage offer first?

ajide

Hi everyone,

I am a first time buyer and already made an offer on a property which has been accepted verbally.
Now I have found a solicitor and also want to apply next week for the mortgage.
The solicitor has sent in the contract for me to sign and also send my ID and statements.
Should I wait for the mortgage offer first or sign the solicitor contract now before I get the mortgage offer. I am also trying to fully get my deposit by next month and so do not want to send in my bank statement now.

Another thing, I loaned my girlfriend £2000 last year and now she has paid part of it (£1000) which will go towards my deposit. How do I tell the solicitor about this? I don't believe this will class as a gift.

G_M

Why do people mess about? Just instruct your solicitor to start work; sign/send back whatever he needs; apply for your mortgage; get a survey booked;

and sort out your finances.

Why wait?

harrys_dad

G_M wrote: »

Why do people mess about? Just instruct your solicitor to start work; sign/send back whatever he needs; apply for your mortgage; get a survey booked;

and sort out your finances.

Why wait?

G_M your advice on this board is appreciated by many, and ignored by others at their peril. In the last couple of days however I have noticed you developing "Victor Meldrew" tendencies, which I can easily recognise because I have them myself

Patience, dear boy, patience

Loopy28

Does your solicitor offer a no move no fee cover? If so then you can instruct them without worrying. If they don't then you can either change to one who do or instruct them but ask them not to start any searches etc until you have your mortgage offer through to minimise the costs in the event that things fall through.

This could hold things up a bit though.

If it were me and I was concerned about solicitors fees if things fall through, I would opt for a no move no fee solicitor. I got lots of quotes recently and didn't find them to be any more expensive in most cases.

ajide

I will send in the mortgage application next week and the solicitor contract as wellbut won't be able to send in my statement as I don't have one yet.

stator

It depends if you want speed or if you want to save your money if things fall through. You will have to give your solicitor a deposit, so if you go ahead and the mortgage is declined you will lose some money. If you wait it will delay the purchase and may annoy other people in the chain.
You can complete the ID checks, sign the contract with your solicitor etc and get that all sorted but ask them not to start any work, and don't pay the deposit yet. Then you can tell them to go ahead later on.
But it may take weeks to get the mortgage offer, and to get the mortgage valuation, so you will definitely be holding things up.
As has been mentioned above a "no move no fee" solicitor would be safer, but you might still lose some money on disbursements if he has already paid for the searched.
Another option is to take out house buyers insurance, which would refund some of the fees if the sale falls through, a company called Bespoke Finance sells this but I don't know how good they are

TheCyclingProgrammer

You borrowed your girlfriend? I hope you gave her back!

ajide

TheCyclingProgrammer wrote: »

You borrowed your girlfriend? I hope you gave her back!

Thanks for the correction.

AdrianC

Do you have AIP from your lender? If not, how do you know that the lender will accept your application?

ajide

AdrianC wrote: »

Do you have AIP from your lender? If not, how do you know that the lender will accept your application?

Yes, I have an AIP from the lender

deanparkr

I'm in the same position as you OP. Waiting on mortgage approval and have just had the survey completed (but documents not received)

Solicitor forms filled out and handed in but not sure whether to pay their deposit until having got the go ahead from the lender.

Hmm