Do you need to have a mortgage offer to start houseviewing?

sugarpants_2

Do you need to have a mortgage offer in place to start houseviewing?

We have our IFA looking into deals for us and we have done the credit checks but hes advised us to wait another month as our credit filw will be even better which means more mortgage?

I am so desperate to move asap (we are in renting and hate where we are living) and want to become home owners in early 2015.

How long will it take from the mortgage offer until completion date if we found a house that was no chain?

S

Hoploz

You don't need anything before you start looking. Anyone can do it. People who don't intend moving at all do it for kicks at the weekend! Just get out there and start looking. Agents will be thrilled to have someone to view a house at this time of year as a lot of people are thinking only of Xmas!

If no chain then it can be 6 weeks but that is extremely optimistic and in reality it will probably take much longer.

Hoploz

BTW even if there a chain it can be quick. We were in a chain this time and we moved in about 8 weeks. Depends if everything goes smoothly and everyone is committed.

sugarpants_2

Thats very helpful. Maybe well look into chain houses too. Hubby keeps telling me to hold off the househunting but he isnt the one stuck in a tiny house with 3 kids 24/7 as hes at work in the glorious countryside. LOL:mad:

Hoploz wrote: »

BTW even if there a chain it can be quick. We were in a chain this time and we moved in about 8 weeks. Depends if everything goes smoothly and everyone is committed.

ReadingTim

No, you don't, but....

- you'll be taken a lot more seriously as buyers if you have an agreement in principle sorted out - it would be a shame to find a wonderful house then not be able to proceed as the vendor and their agents thought you were time wasters and accepted an offer from someone else who seemed a more serious buyer than you did.

- you'll have a good idea what your budget is - it would be a shame to find the perfect house then realise you can't afford it.

nubbins

I would agree with Tim. Just say tomorrow you actually find the house of your dreams, its absolutely perfect, you love it, that feeling inside says do not let anyone else have it, I want it at all costs. You tell the EA you are interested,they tell you another 2 people are also interested, what position are you in. You say, well I am just looking really but we might be able to get our mortgage sorted next month but not 100% or you lie and say we have a mortgage sorted to which the EA replies can we have some proof of the mortgage in principle. Who do you think the EA is seriously going to deal with?
Its fine going to have a look and checking properties out but be prepared for the above scenario, thats probably why hubby is saying hold off.

d0nkeyk0ng

Definitely get a DIP. I had a chat with my bank who said they'd give me 4x income based on 10% deposit. For six months, I looked at houses in one price range. When I started putting offers in I got a DIP and found lender would give me 5x income. At the same time I had an offer accepted on the house that I bought right at the top of my price bracket.

In some ways, if I'd known I'd have been given a higher amount, I would have looked in the next price bracket up. At the same time, it means I'm nowhere near stretching myself even if rates doubled.

G_M

Anyone can window shop...

And there's nothing to stop you offering to buy.

Of course, if you don't have the money, either in cash or in the form of a loan lined up, the seller might consider you a bit of a wide boy (or girl).

Boogiecat

Tough one. As a buyer myself I only viewed unoccupied houses for sale till I was in a position to make an offer. As a seller I found it annoying spending a day cleaning etc to make it look perfect, only for someone to come round, say they love it but aren't in a position to make an offer. But the other half of me thinks at least when she is ready mine's a contender. But to be honest after that I took it off the market and am going to rent it out.

But do check out properties on the likes of Rightmove etc. There isn't a house or flat for sale in my chosen area that I don't know about after looking so much, so I am confident that I now know what I can get for my money, what's a bargain and what isn't. Visit the area. See what's not visible in the photos ( it's amazing how big and ugly a building you can hide by careful picturetaking!) Knowledge is power.

bristol_pilot

A minority of sellers will take you more seriously if you have an AIP in place, however that is because they do not realise that an AIP has little to do with whether you will actually get the mortgage - this you will not find out until you apply for one and the application has been through the underwriting process.

What an AIP will do however, is it tells the seller/agent what you can afford and this seriously damages your negotiating position when it comes to price negotiations.

Personally if you are intending to borrow a reasonable multiple of your income I'd not bother with an AIP. If you are 'stretching', you might get one for your own purposes but I certainly would not show it to the seller/agent!

Peronihull

I started looking without a mortgage or an DIP for a few reasons.

Having spoken with my IFA I had a rough idea of what I could afford and comfortable with in terms of repayments etc. However as I hadn't found a property I didn't want to start all the process to have to keep repeating it as often these AIP's / mortgage offers expire.

I was not in a hurry so didn't Want the pressure of this to have a bearing on what I decided to go for.

When I found something, and had offer accepted and was asked who my mortgage was with... I gave my IFA details.

From there it took a week to turn round my DIP and less than 4 to get my full offer incl a valuation.

Some EAs may suggest they won't book you in until you have a DIP but if I was a vendor I wouldn't hold that against you....