Estate Agent Requesting Financial Info

lindsay.doherty

I have put an offer on a property alongside others and the Estate Agent has asked on the request of the vendor that we speak to their financial advisors so that they can make a financial recommendation on who to offer the property to. Is this normal?

If it is, how much should I be giving away to them? My full mortgage and deposit that I’m prepared to put in is more than I have offered on the property so I don’t want to leave myself in a position where they try to get me to up the offer because they know I can afford it. Conversely because I’m not maxing out my mortgage then I should be in a good position?

Any advice would be welcome.

foxy-stoat

The vendor has no right to ask you to do this - it is probably the estate agent trying to sell you a mortgage or trying to find out if you can increase your offer if you can afford it.

If you have a DIP or AIP then show them that - that should be sufficient along with proof of funds if its in a bank account.

AdrianC

Have you provided any information on your financial situation to the EA? They have a duty to their customer, the vendor, to ensure that you are a proceedable buyer, not a skint time-waster.

Just because you can afford more doesn't even mean you will pay more, so if you think your offer's being rejected as too low, make it clear that you aren't playing games, and if that's not enough, you'll walk.

G_M

Have you selected a coneyancer?


Show your conveyancer your financial records - he'll need to see it anyway foranti money laundering reasons.


Then ask him to email/write to the agent confirming that you have the funds to cover your offer.


If you reveal all your financial assets, the seller/agent is in a stronger position to negotiate the price up as they know you can afford it.

lindsay.doherty

foxy-stoat wrote: »

The vendor has no right to ask you to do this - it is probably the estate agent trying to sell you a mortgage or trying to find out if you can increase your offer if you can afford it.

If you have a DIP or AIP then show them that - that should be sufficient along with proof of funds if its in a bank account.

No they haven't yet asked me for anything which is why I think it sounded reasonable. I have an AIP and can provide proof of deposit. Not been through the process so difficult to know how much info to give away.

lindsay.doherty

G_M wrote: »

Have you selected a coneyancer?


Show your conveyancer your financial records - he'll need to see it anyway foranti money laundering reasons.


Then ask him to email/write to the agent confirming that you have the funds to cover your offer.


If you reveal all your financial assets, the seller/agent is in a stronger position to negotiate the price up as they know you can afford it.

I haven't yet selected a conveyancor. It's my first property so I thought I could arrange that after the offer was accepted, otherwise I would start to be charged? Am I being naive?

badger09

lindsay.doherty wrote: »

I haven't yet selected a conveyancor. It's my first property so I thought I could arrange that after the offer was accepted, otherwise I would start to be charged? Am I being naive?

I don't think you're being naive, but I'm not aware of any reputable conveyancer who would charge you before starting any work. It might be an idea to get a few quotes and choose one asap so you're ready to go as soon as your offer is accepted.

Whatever you do, don't choose one suggested by the EA. They are almost certainly receiving commission - and it won't be the EA paying it;)

theartfullodger

Say you quite understand the vendors reasonable request which you will comply with after the vendor speaks to your financial adviser.

£5 says vendor made no such request and it's just agent wanting commission for flogging you a mortgage.

pinkteapot

G_M wrote: »

If you reveal all your financial assets, the seller/agent is in a stronger position to negotiate the price up as they know you can afford it.

I see this comment a lot but personally I disagree, because there's a difference between what someone can pay and what they're willing to pay.

I've shown EA's proof of funds before that have clearly shown we could be buying a much more expensive house. We say that our best offer for this property is £x, with reasons if there are specific reasons for offering less than asking.

[Deleted User]

Friend of mine just had a purchase collapse because the agents saw an AIP but didnt actually get confirmation that it was valid to buy the property my friends were selling.

What does an agent know about mortgage criteria? Nothing.

If someone shows an AIP for 5% deposit and a savings statement for 5% deposit then all good to go right?
.
What about if they are buying a flat? Does the agent know that the AIP with that particular lender wouldnt be approved?

I agree with everyone that the agents are trying to flog a mortgage appointment but its also to show you are proceedable as so many things go in to make a mortgage AIP turn in to a mortgage offer. 99% of mortgage brokers are honest and reputable people who (i hope) wouldnt trick you in to doing business with them.

Either go in and show what you have done so far. They will ask a few question around your circumstances to sanity check the numbers and approve your offer as proceedbale. Or ask to speak to the broker on the phone and see if he/she can speak directly to your broker.

At the end of the day, if you had the chance to check your buyers could proceed wouldnt you take it as a vendor? Just gives you that bit more confidence.

And obviously, you cant be sold to if you dont want to so they cant make you use their mortgage advisor.

Pretty much all my clients are asked to confirm their ability to proceed in some way. I dont have any issue with is. If its a small independent I usually call them and explain how the deal is made up, if it is a big agent with their own broker they usually try get them in to do it but my clients just give them my details and i do it for them

davidmcn

pinkteapot wrote: »

I see this comment a lot but personally I disagree, because there's a difference between what someone can pay and what they're willing to pay.

Indeed, it only makes sense if people always buy the most expensive property they can afford - or if people with more money are for some reason happier to pay over the odds. All it does is perhaps remove the "I can't pay more because I can't afford it" argument.