Be a "qualified" buyer?

Reggie_uk

Hi Guys,

I'm in the process of buying my second house. Its a good size 3 bedroom house that needs a LOT of work... No central heating for starters.

Anyway.. I have made an offer to the estate agent yesterday, well below the asking price. The haven sent me an email asking that I come in to be "qualified".

"We are asking for all potential buyers to come in to be qualified. This does not mean you need to do an AIP but there are some documents my mortgage advisor will need to see.

When you would you be able to come in to do this? My mortgage advisor will also be able to see whether or not he can get you a good deal."

I called them, they said i'd need to come in with bank statements, payslips etc...

I explained I already have a AIP arranged by my mortgage advisor. (Who I trust and have known for a long time, we go out for meals at least once a year to catch up etc.)

To me this seems like a scam for the estate agent to sell me a mortgage. The agent's mortgage advisor is calling me today, I'd like some advise before they call.

Is this a common practice? I made an offer (which fell through) in September with another agent... There was no qualification process.

Any Help or advice would be great!

Pixie5740

Some estate agents try this on even when potential buyers tell them they already have an AIP. As a vendor I'd be very cheesed off if I was losing out on potential buyers because of this shenanigans.

nubbins

I would ask them which documents they require and you will send them on. Its just a way of getting their foot in the door and I certainly would not be using a broker,solicitor or surveyor connected with the agent that I am buying a property through. Tell them to get lost.

hazyjo

Just be very firm with them. In 7 purchases, I've never had to do one. Once they start, just say 'no I'm not interested thank you - I have my MIP arranged through a broker who's a family friend'. End of. If they say they can't proceed with your offer, go to the vendors (or tell them that's against the law and you will be making a formal complaint/taking it further). Not the best footing to start off with, and hopefully it won't go that far and a no will be a no.


Jx

stator

It's pretty standard practice by some estate agents. You can go in and tell them no thanks or you can tell them no thanks over the phone. Either way you'll probably end up annoying them. But if you're not annoying the estate agents then you're not doing it right

Reggie_uk

Thanks guys for all your input. I certainly think is a conflict of interest for the company I'm bargaining with to know the full extent of my financial details.

lessonlearned

Give them the name of your broker. They can "qualify" you that way.

Alternatively you can get your solicitor to email them to confirm that you have sufficient funds to make the purchase.

Either way the EA does not have the right to insist you see their mortgage dept, neither can they refuse to forward your offer to the vendors.

It is against the law. All offers have to be passed to the vendor unless the vendor as has given specific instructions for example, no offers under £xxx

In reality the term "qualified" in this instance should mean that the purchaser simply is in a position to proceed. This means that there is no dependent sale ie you have no house to sell to release funds or that the sale of your house is proceeding, secondly that sufficient funds are available.

You do not have to buy any of the EAs ancillary products, ie solicitors, mortgage, house insurance etc EAs will chance their arm and try and flog you the lot.

They may try and offer you a "package" to "keep things simple". These rarely work to the purchaser's advantage, better to shop around and have your own team working in your best interests.

G_M

Do not send or provide your financial details: thi can be used against you in any price negotiations.

Once they know exactly how much money you have available they can push you to increase the price.

A letter from your mortgage adviser or solicitor stating that 'my client has sufficient funds for this purchase'. Send it to the agent and send a copy to the seller too!

Gonzo1987

Tell them you will get your broker to call the office to confirm your ability to proceed. EA has done their job and made sure you are able to proceed with the purchase, you have given proof. everyone is happy.

Flashmanchop

Just give them you AIP.

Job Jobbed. That's you qualified.

ACG

G_M wrote: »

Do not send or provide your financial details: thi can be used against you in any price negotiations.

Once they know exactly how much money you have available they can push you to increase the price.

A letter from your mortgage adviser or solicitor stating that 'my client has sufficient funds for this purchase'. Send it to the agent and send a copy to the seller too!

I completely echo this.