committed buyer or not?

kmate

Hi,

We are currently in a chain of 4.

1. first time buyer
2. our buyer
3. us
4. our vendor

have heard this week that the first time buyer is refusing to start legal work until he has his mortgage offer through. (it has been 6 weeks since his offer was accepted by our buyer)

I can see that he may be over cautious and not want to spend money unless all is fine with his offer, but shouldnt he have had AIP in place before he started the process?
Does he sound like an over cautious first time buyer to you, or do you think he is not really committed to the move?

Everyone else has had surveys/most searches and reasonably well into things.

Any thoughts? When we were first time buyers ( long time ago) we were really speedy with everything as we were SO excited, and wanted to move asap.

Doozergirl

It's backward thinking really. Looks like he wants the house to be sound before he starts anything else, but the rest of the conveyancing is just as important to uncover potential issues - you just have to get on with it and hope for the best. I don't think it means he isn't committed, just that his logic is arguably a little bit skewed.

FTBs are usually the fastest to be ready in the chain. I doubt that he will hold you all up too much, as long as his survey is carried out quickly and the mortgage offer quick. At least you'll be saved all the foot stamping that often comes with FTBs being ready before everyone else.

cattie

Realistically buyers should have a AIP before they even make an offer & estate agents that are on the ball will normally check this out before booking in potential viewers.

However, some prospective purchasers fail to get the mortgage sorted out first before even starting to look at properties & it does delay things for 2 or 3 weeks or so when they do get round to applying for the mortgage.

Your buyer may be at fault for failing to get the AIP first, but I can see his logic in not wanting to start any legal process untill he has the mortgage offer & woudn't consider it overly cautious in todays mortgage market.

Doozergirl

Oh, Is he waiting for an AIP or an actual mortgae offer? After 6 weeks, if he's still waiting for an AIP, I'd give him short shrift!

kmate

thanks for replies.

I think it is just the mortgage offer he is waiting for, what I meant regarding the AIP is that you would have thought that having AIP would make him feel confident that everything is fine,as most people would take an AIP to mean they were very likely to get the mortgage.
He is far more sensible than I was when FTB !!! I am much more of the mind of "if your going for it - go for it!"

Libra1975

I don't have an AIP, we saw a broker (recommended by 5(!) friends) and he gave us a selection of mortgages we could look at and said we didn't need an AIP as we have a 20-30% deposit and are only borrowing 2 times our joint salary and both have good credit ratings so applying for the mortgage shouldn't be a problem at all. Is this not a good thing? *looks worried*

kmate

As far as I know, you dont HAVE to have an AIP, you just need to be in a position to ensure to the EA and other parties, that you are good for the money, it sounds like you are! I think that AIPs are just a kind of a sign that you have been to a Bank/Broker etc and have looked into the finance side really well - and that you are not aiming for something thats completely out of reach.
As far as Ive been told the EA is obliged to find out if the potential buyer IS in a position financially to go ahead. Probably the EA could call your broker,who would be able to say that you are ok.

Hopefully someone who is actually an expert will back this up - sorry if worried you!

Libra1975

Thanks for the reassurance, slight panic there

Maybe your FTB is being cautious because even if he had an AIP things have changed so much in the last 2 weeks regarding mortgages he wants to make sure he actually gets the mortgage offer before paying out lawyer fees etc.

kmate

Yes you are prob right, Im sure he will be fine. Think I am just getting edgy as the process has been full of obstacles (what chain isnt?) and as we have 3 small kiddies would REALLY love to be in by xmas!!!!!!!
The idea of him starting all the legal searches etc when the rest of chain are all ready to exchange isnt so great!

but for now, I will stay calm!