Proving funds to Estate Agent

Daniel86

We are FTB's, we've made an offer on a property and the estate agent has asked to see proof of our deposit, mortgage in principle and ID etc.
Our offer is lower than the asking price and we're not expecting it to be accepted, the estate agent has told us that, but we're willing to go higher if that's the case.
I'm just worried it reduces our negotiating power if the estate agent see's how much money we have, and what the mortgage in principle is for.

Do we need to show him now? Or could we just say we will show all of this if/when an offer is accepted?

Guest101

I would never show anything, simply put: "my solicitor / conveyancer will be able to confirm I have the required funding options"

Daniel86

Should we have a solicitor already? this is our first bid and it hasn't been accepted yet, I thought we would get a solicitor once we've been accepted, no?

Surrey_EA

It is a wise idea to have a specific solicitor lined up, ready to act on your behalf when you have an offer accepted.

Begin speaking to a few local firms and ask them to send you a quote.

wantonnoodle

When we were asked this by an EA when we offered on a house (we were subsequently outbid, we were unwilling to go above asking), our response was that if they wanted any information on our funds and proceedability financially, they should get in touch with our Mortgage Adviser.

This was on the advice of said adviser when he went through our finances before we started our search, as he is more than happy to field those questions on our behalf. He believes that an AIP is not worth the paper its written on, as they often are only valid for 30 days, so we wouldn't have one to give to an EA even if we wanted to.

The EA in question had no problem with that. We've offered on 2 other properties since (one unsuccessfully, the other we left the offer on the table as we offered asking but the vendor rejected as they wanted more), and neither occasion have we been asked to prove funds. So, I would expect its not that common an occurrence.

Three_Beans

Hi,

We had this situation just this week on a place we are buying- refused to share anything until a provisional offer had been accepted - we agreed with the agent/seller that the house would not come off the market and viewing stopped until I could then get the requested info to the EA which we did same day as offer being accepted.

Good luck with the purchase - exciting times:D

marksoton

Daniel86 wrote: »

Should we have a solicitor already? this is our first bid and it hasn't been accepted yet, I thought we would get a solicitor once we've been accepted, no?

Ideally yes. Use this time to do some research and get a decent solicitor. There's nothing worse than poor legal representation when purchasing.

And no, i wouldn't be showing the EA a thing.

always_sunny

Daniel86 wrote: »

We are FTB's, we've made an offer on a property and the estate agent has asked to see proof of our deposit, mortgage in principle and ID etc.
Our offer is lower than the asking price and we're not expecting it to be accepted, the estate agent has told us that, but we're willing to go higher if that's the case.
I'm just worried it reduces our negotiating power if the estate agent see's how much money we have, and what the mortgage in principle is for.

Do we need to show him now? Or could we just say we will show all of this if/when an offer is accepted?

I got asked and showed them nuffin, provided appropriate contacts (like broker) who could confirm. If they walk, you walk too and another property will come up.

HouseBuyer77

Generally the EA will ask to see such info once you've had an offer accepted before they issue the memorandum of sale (effectively a more formal document confirming the offer acceptance), though not all do.

Asking for such proof before you've even had an offer accepted seems a bit much.

sheff6107

General etiquette is to show the mortgage Decision in Principle to the agent.

But since estate agents are required by law to forward any and all offers, it is only a convention so that the agent can tell the seller that they have seen some evidence of funds.

Any more digging by the estate agent is going too far.

TBagpuss

sheff6107 wrote: »

General etiquette is to show the mortgage Decision in Principle to the agent.

But since estate agents are required by law to forward any and all offers, it is only a convention so that the agent can tell the seller that they have seen some evidence of funds.

Any more digging by the estate agent is going too far.

I'm not sure that it is general etiquette, although it may be common practice on some area, particularly where there is a lot of competition for properties.

If you have a mortgage advisor you can ask them to provide a letter to say that they have had sight of proof that you have sufficient deposit and mortgage AIP for [whatever the amount of your offer is]