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.

marksoton

Personally i'd get the AIP now ( It puts you in a much stronger position when offering ) and quite often only requires a "soft" search so shouldn't impact your credit reports.

A solicitor i wouldn't bother engaging yet. But i would speak to family and friends to get recommendations so you have an idea who to use when the time comes.

HouseBuyer77

AIPs are fairly meaningless, they shown you've passed a brief credit search and your self declared finances look OK, a proper mortgage application has far more scrutiny involved. They do at least demonstrate you've thought about mortgages and don't have awful credit.

You can get them online easily, nationwide will do you a 3 month one in about 5 minutes.

EAs will vary in what they ask for, not all of them will ask for AIP but you do want to be able to say yes when they ask if you have one (for some this will be before viewing, for others this will be when you offer).

So getting one before you start seriously viewing houses would be a good plan, find a 3 month one to hopefully avoid having to reapply. Note that getting an AIP from one lender doesn't mean you have to get your mortgage from them.

Malmo

achan891 wrote: »

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.

There is no harm in obtaining an AIP now. It will not be a problem if it expires and you apply for another one. This doesn't imply desperate credit application behaviour for any lender reviewing your credit history.

For solicitors, try the search below, which is through the Law Society's official database.

Law Society Search

Contact several of the firms listed, ideally with 2 or more senior partners, with your requirements. I sent an email to each requesting a quotation and heard back quickly. You can use the template below, which may be useful.

Also, check that each firm's conveyancing practice is not a hotbed of formal complaints by reviewing the Legal Ombudsman's decision data - see this link, filter on "Residential Conveyancing" and sort by OMBUDSMAN REMEDY REQUIRED in descending order.

Then read this article to understand what "good" looks like for conveyancing quotations and what to expect from a good quotation.

=====
Hello,

Can you please provide detailed quotations for I]both sale & purchase[/I, split out by:
a) your basic conveyancing / legal fee (including VAT)
b) all itemised disbursements (please specify which searches are included) & other charges (including VAT where applicable & estimated SDLT)

We also have some questions to which we'd like responses to help us evaluate our options.

1) On what basis is your basic conveyancing fee for processing the transaction(s) payable? (fixed-fee OR scaled to the sale & purchase prices OR per hour)
2) Do you operate a "no move, no fee" policy?
3) What costs (if any) are payable upfront for both sale & purchase and at what point in the process? For example, what costs (if any) should I expect to pay prior to preparation of draft contracts and would there be any costs simply to open a file?
4) For our purchase, are you able to specify which lender's panels you are currently approved on (or not approved on, if that list is easier or shorter to answer)?
5) Are you available by email & direct dial number?
6) In the event that the solicitor representing our case is absent for any reason, would you handover to another representative at the firm?

Our Details
Number of Applicants: [X]

Purchase Postcode or Local Authority: [...]
Purchase Amount: [£...]
Purchase Tenure: [...]

Sale Postcode or Local Authority: [...]
Sale Amount: [£...]
Sale Tenure: [...]

I look forward to your response.
Many thanks,

[Your Name]