Mortgage / Agreement in Principle Confusion?

Adamc

I got an Agreement in Principle from Halifax, however, I've been advised to see an independent broker to see if I can find a better mortgage. The Halifax agreement has now expired.

I just wondered, is it worth me forking out the fees to see a broker now as the AiP is said to be valid for 90 days? It's very unlikely I'll find a house within that period but I need to have one ready to be able to make an offer when I do find the right house.

Or should I get another 'free' MiP from a bank and then see a broker and find the best mortgage available when I am ready to make an offer? Just a bit confused about how I should go about this.

Apologies for any misunderstandings - first time buyer. :money::o:money:

ACG

If you are not going to find a property any time soon then why get an AIP/MIP? Leave it until you are ready.

Adamc

ACG wrote: »

If you are not going to find a property any time soon then why get an AIP/MIP? Leave it until you are ready.

I am looking but am in no rush. If the right house came up I would be willing to buy. It's just that the good ones are taken almost instantly and then there can be a spell of very few potential houses.

Is there a way to be ready while also waiting for the right property?

Cheers

ACG

Just by being ready. Have your payslips, bank statements at the ready. If you are going through a broker, get the factfind completed. If you are going with a bank, there is not much you an do.

We are talking less than a week between finding a property, making an offer and then submitting an application. Having an AIP is not going to make the slightest difference in those time frames.

Adamc

ACG wrote: »

Just by being ready. Have your payslips, bank statements at the ready. If you are going through a broker, get the factfind completed. If you are going with a bank, there is not much you an do.

We are talking less than a week between finding a property, making an offer and then submitting an application. Having an AIP is not going to make the slightest difference in those time frames.

Many thanks for the response.

Just as an example: A house went on the market this Saturday which I liked the look of. Called up the agents this morning at 10 am who said they'd already been offered over the asking price and the vendor had agreed to 'hold' off other viewings. How does this kind of thing happen? One week lead times sound great but it seems there's people making offers after one hour of the agents re-opening after the weekend.

ACG

They may have made an offer which has been accepted, but they would not have made an application until probably the monday at the earliest.

Adamc

ACG wrote: »

They may have made an offer which has been accepted, but they would not have made an application until probably the monday at the earliest.

To make an offer they need an Agreement in Principle?

Do you get clients coming to you before they have potential house to buy?

amnblog

You don’t need an AIP to make an offer. A number of Estate Agents will tell you they won’t put an offer forward without one as it is a good way of them trying to secure the mortgage business.

If you were dealing with a broker they would have you well placed and ready to offer when you found the right property and managing the agent for you.

ACG

Adamc wrote: »

To make an offer they need an Agreement in Principle?

Do you get clients coming to you before they have potential house to buy?

You dont need an AIP to make an offer. Some agents may insist on one, but usually it goes along the lines of "you need an AIP to put your offer forward" at which point you can get one as it seems quite likely your offer will be accepted or it is a not a million miles out.

Most people I speak to come before they have found a property. Occasionally it is after they have found a property and everything is a bit of a rush job.

Adamc

ACG wrote: »

You dont need an AIP to make an offer. Some agents may insist on one, but usually it goes along the lines of "you need an AIP to put your offer forward" at which point you can get one as it seems quite likely your offer will be accepted or it is a not a million miles out.

Most people I speak to come before they have found a property. Occasionally it is after they have found a property and everything is a bit of a rush job.

How do you deal with the ones in my position: quite picky about houses but want to be able to close quickly when the right one comes up?

ACG

I have a credit report on file, bank statements, payslips and a factfind. That way when you are ready I have already done the research and know if you are a "vanilla" case where you can chase the rate or if you have anything we need to overcome and need a more flexible lender. I have them listed on your file and then I am more or less ready to go.