Get AIP and/or find solicitor before finding a property??

achan891

My husband and I are FTBs looking to purchase in a very specific area. We started looking properly about a month ago (just checking online ads before that) and there isn't too much coming up, though the properties that do come up seem to sell very fast (sometimes).

We are currently renting with a fixed term until end of March 2016. We aren't in a huge rush to buy and would rather wait for the 'right' property for us. But if the right place comes up, we'd be happy to put in an offer very soon.

We are a little confused however about whether we should, at this stage, get an AIP and/or find a solicitor. My husband thinks we shouldn't because an AIP will only be valid for a limited time and so if we are still looking in 3 months or 6 months (or whatever), we will have to get multiple AIPs to continuously have a valid one - which (apart from the hassle) means multiple credit checks. Or could we say to an estate agent that we have an AIP from 6 months ago so we know we can afford a given property? I know we don't necessarily have to go with the lender that offers us the AIP (presumably it would make sense to check again whether it was the best deal for us).

I should add that we have both checked our credit records (all fine) and have done very detailed calculations of what we can afford, along with multiple online affordability calculators which all point in the same direction. But we haven't yet approached a bank/broker.

I'm also not sure if we ought to find a solicitor yet - would it be weird to say 'we're wanting to buy sometime in the next 12 months - but it could be tomorrow - will you take us on?' I don't even know how we ought to choose a solicitor. I know not price alone - as speed matters too - but then how do you choose? What info is a solicitor likely to want if we haven't yet found a property? ID checks, presumably - anything else? Will they charge us for just taking us on while we look for a property, or only once we actually get them to do something?

Thanks for any help.

[Deleted User]

Your solicitor will largely depend on which lender you go with as some only have a specific panel of lawyers you can use (or rather you can use your own but they'll insist on one of theirs as well so you'll pay twice) so I wouldn't worry about that as no agent will ask/care if you have one until you have an offer accepted somewhere. Most solicitor quotes will require information on which property you intend to buy anyway, so you wouldn't get far with one without this information.

You need to get an AIP before you start looking so you know how much you can afford to borrow. Some lenders only do a soft search so it won't effect your ability to get credit in the future- some may do a hard search but AIPs are normally valid for a while and some lender will let you extend them (as ours have). If you find a property you like the first question an agent will ask you is if you have an AIP- of course you could always lie, but it just saves a step if you already actually have that in place.

Have you got all three copies of your credit reports (Equifax, Experian and Call Credit) and checked them for any discrepancies? I'm not talking about the score, but the history- check with all three that there are no unknown missed payments or defaults, as these things will impact your ability to get a mortgage and it's best to read them now so you can try and sort out any issues in the coming months before you start looking properly and apply for your AIP. Also- go to a broker if you can.

Brown_Eyed_Girl

So I spoke to my mortgage adviser who gave me an idea of what I could afford. He then said just go view things and when you see something you like put in an offer. They also suggested a solicitor who sent me a quote based on what I was looking to buy.

Found a place and once the offer was accepted we did the AIP and then the mortgage within a few days (now being held up due to annoying surveyor). Also contacted the solicitor the same day that the offer was accepted to get the ball rolling. They've been brilliant.

Being a FTB is a bit of a jump into the dark unknown so i'm really glad I have a mortgage adviser I can just call and check things with. He also chases everything, which was a godsend when the first surveyor was being a pain. Some are free, others cost - but might be worth having a chat with one

benjus

To some extent it depends on how much of a seller's market it is. If there's a lot of competition for properties it's good to do everything you can to show you're serious and organised, including having an AIP and a solicitor lined up.

There is the question of whether the solicitor is on the lender's panel, but if you choose one that's accredited by the Conveyancing Quality Scheme you stand a good chance of them being on the panel. Even if you have to change solicitor later, it's good to be able to give the Estate Agent something if they ask. You can get an estimate based on approximate purchase price.

Neither the AIP nor a solicitor's quote puts any obligation on you to actually use those services, but are good things to be able to show to the agent. And it's better to choose a solicitor that you think will do a good job rather than be persuaded to use one that gives the agent (or even your mortgage broker) a kickback.

Hoploz

Get an AIP as it will clarify what you can borrow. And then you'll be in a good position if you need to jump quickly.

You can sort a solicitor pretty quickly when you need one. Have a little look round, maybe ask friends or family who might have moved whether they would recommend someone to you. That's the best place to start.

J_i_m

I spoke to London & County today and got myself an decision in principle and am now advised to find somewhere and put an offer in.

Once the offer is accepted, go back to the broker who'll support me through the rest of the mortgage application.

-taff

You have six months before you can get out of your tenancy, so if you did make an offer, they likliehood is that the vendors won't accept it unless they too don't want to move till March.....