Solicitor/conveyancer fist or mortgage first

truffle

Hi

Im trying to work out quite urgently the order in which things need to be done to buy my first home.

Do I arrange the solicitor/conveyancer first or do I apply for the mortgage first?

On a checklist for the mortgage I have seen that they ask for details of the legal team but I thought that each lender had a selected panel of legals which you could use without incurring additional costs. I see that some lender charge extra when you use legals that are not on their panel.

It seems a bit of a chicken and egg situation.....very confusing

all answers gratefully recieved:T


Also Ive been doing some comparisons for mortgages but I do not know where to go to select the legal side and I really dont know anyone who has bought a house recently for any recommendations so i guess im at the mercy of the web.......advice much appreciated!!

kingstreet

You need to make sure your chosen solicitor is on your chosen lender's panel.

Ask your solicitor to open a file, then do nothing until you tell them.

You give the solicitor's details to the selling agent. The agent issues the memorandum of sale so the vendor's solicitor knows where to send the draft contract.

Until that arrives on your solicitor's doormat, there is nothing they can do anyway.

In the interim, if your vendor has found somewhere and the chain is complete, make a start on your mortgage.

Once the mortgage offer is issued, instruct your solicitor to do searches. If you need speed, have both going concurrently, but be wary of wasted money if the purchase fails.

Bippityboppity

We ran both concurrently, as vendor wanted as fast a sale as possible. We were made aware of risks of losing money in fees but to us it was worth the risk. Our broker basically rang the solicitor across the road from him while we were doing the mortgage application and we nipped in to give her our i.d once we'd signed the mortgage application and solicitor got the ball rolling right away. Searches ran whilst mortgage was being arranged and final offer arrived last week at the same time as the final search.
Took 5 weeks from making offer on house to morthage offer and this point.

kingstreet

Worth remembering, in many/most cases the purchaser's solicitor cannot request searches without the title plan which is attached to the draft contract by the vendor's solicitor.

That's why you at least give solicitor's details to selling agent as early as you can.

truffle

Thanks Kingstreet

Would there typically be a fee for the solicitor to set up the file?

My situation is somewhat unusual as there is no chain as i am hoping to buy the property i currently rent . but it has been put on the market to get the best price.

I am trying to put myself in the best position to get the property by setting up the finance and legals asap so I am 'good to go' if my offer is the best offer

kingstreet

You need to ask your solicitor its policy.

truffle

So in order of this for me to do as i understand....

1. Speak with broker to identify mortgage/lender to apply to.

2. Find out which legals are on their panel to appoint

3. Investigate reviews for legals and choose which one

4. MAKE MORTGAGE APPLICATION

5. Valuation

6. Receive Offer (hopefully)

7. Instruct Solicitor

8. Legal Searches

.........check title? contract etc (unsure what the legals do entirely?)

Bippityboppity

You could do step 4 and 7 together so 8 runs alongside 5/6 speeding up the process ��

kingstreet

Purchase process

House purchase process runs like this;-

Offer agreed
Solicitors instructed
Sales memorandum issued by estate agent
Purchaser applies for mortgage
Vendor's solicitor prepares and issues draft contract to purchaser's solicitor
Vendor completes seller's enquiry forms and returns to their solicitor
Valuation/survey carried out
Purchaser pays their solicitor for searches
Searches requested by purchaser's solicitor
Renegotiation of price due to survey findings - if required
Mortgage offer issued
Purchaser's solicitor receives seller's enquiry forms and raises any enquiries with vendor's solicitor
Searches returned to purchaser's solicitor
Responses to enquiries from vendor's solicitor to purchaser's solicitor
Purchaser visits solicitor to go through paperwork, hand over ID and deposit
Completion date agreed between all parties
Contracts exchanged
Purchaser's solicitor sends purchase funds to vendor's solicitor
Completion takes place
Vendor's solicitor receives purchase funds and authorises key release.

The order might be a little out in one or two places and some things can take place concurrently, rather than consecutively to save time.