What comes first....?

guestiee

What comes first get a Mortgage in Principle or make viewings and an offer?

I'm a bit confused and reading conflicting things. Our property is ready on the market.

lee111s

You can't really make an offer on a property until you have a buyer for yours. You'll find that most people won't accept an offer unless you're in a position to actually progress.


You need to visit a few mortgage lender websites and use their calculators to get an idea of how much you can borrow. They're not 100% but they'll give you the ballpark which you can aim for. From that, you can work out what value of property you're going to be able to look at (taking into consideration any equity from your property).


Some lenders will give you a DIP when you tell them what value of property you're looking at (YBS did with me). I then got them to amend the DIP when I had an offer accepted to show they would lend me the amount needed to buy the property (you don't want them to show the maximum you can borrow as they MAY cause the estate agent to inform the seller that you can afford to pay more).

guestiee

Thanks for your reply. So from what I gather I should sit tight until I have a buyer for my property? Apart from doing some mortgage calculators, which I've already done.

I was told by my estate agent to start looking and viewing houses - is there no point in this then?

So to get it clear in my head you recommend:

Step 1: Sell property
Step 2: Get Mortgage in Principle (only once house is sold)
Step 3: get viewing
Step 4: Make an offer and hope the buyers don't mind waiting?

Thanks,
Matt

stephenni1971

guestiee wrote: »

Thanks for your reply. So from what I gather I should sit tight until I have a buyer for my property? Apart from doing some mortgage calculators, which I've already done.

I was told by my estate agent to start looking and viewing houses - is there no point in this then?

So to get it clear in my head you recommend:

Step 1: Sell property
Step 2: Get Mortgage in Principle (only once house is sold)
Step 3: get viewing
Step 4: Make an offer and hope the buyers don't mind waiting?

Thanks,
Matt

Put it this way - would you accept an offer on your property from someone who is still to get a buyer for theirs?

By all means do some research now but you really wont be in prime position to put in an offer until you have accepted one on yours. A DIP will let you know exactly what you budget is and it will be the first thing an agent asks for if you do place an offer on another property.

guestiee

OK, I understand. The last few properties that have been put on the market in my target area recently have been sold within a week. So I guess the way forward with that would be to get a mortgage in principle now? Ready in case the opportunity arises.

Thrugelmir

guestiee wrote: »

I was told by my estate agent to start looking and viewing houses - is there no point in this then?

There's no harm in looking. Particularly if you are looking at a particular locality. As it's not just the house in my view. Places are very different at certain times of the day.