Estate Agent Requesting Financial Info

MysteryMe

The opening sentance is a little confusing but my reading is that the OP and other interested parties have put offers in on the same property?

In that case I can understand that the vendor will want to base whose offer to accept not just on amount offered but also who is in the best position to proceed.

Does it really matter if your offer is not the maximum you could go up to? Reading some of the responses it seems some people are assuming you are incapable of just saying no if the vendor comes back wanting more money or no to a mortgage appointment.

System

MysteryMe wrote: »

Does it really matter if your offer is not the maximum you could go up to? Reading some of the responses it seems some people are assuming you are incapable of just saying no if the vendor comes back wanting more money or no to a mortgage appointment.

You can just say no, but it is still unwelcome hassle if the estate agent starts playing games to try to get you to pay more because they have seen you have access to more money. Some estate agents might be very good at it - why put yourself in that vulnerable position if you can avoid it?

eddddy

Diocletian_II wrote: »

I have previously come across agents asking for proof of funds as a cash buyer, before they will even allow a viewing.

I guess that might be to deter 'sightseers'.

I can believe that EAs would do that if it was an unusual building that people wanted to see inside, or a celeb's house etc.

(Or if you just didn't look like the type of person who could really afford a £5m mansion, for example.)

System

eddddy wrote: »

I guess that might be to deter 'sightseers'.

I can believe that EAs would do that if it was an unusual building that people wanted to see inside, or a celeb's house etc.

(Or if you just didn't look like the type of person who could really afford a £5m mansion, for example.)

Not an unusual property. I suspected he was just trying it on to get to see how much money *he* potentially had access to. I told him where to stick it.

jjmmww1

We had 2 houses to look at with 1 particular estate agent always pushing us to go in with them for a mortgage check in the end we just stopped looked at houses with them as they were the only estate agent to ask we already had our AIP sorted and showed them

[Deleted User]

hazyjo wrote: »

But that's just an AIP then isn't it? Unless they are going to run a full application, how on earth are they going to say they're any more able to buy the property they're offering on? Most people will offer, get a complete chain, then apply for a mortgage along with the other stuff.


So if you're saying you would wait until negotiations were done, what's the difference in applying for an actual mortgage against what you're suggesting? In both scenarios, they'll have an offer accepted, get a complete chain, then either (a) apply for mortgage or (b) have indepth checks to see if they're able to buy it. Or are you saying you'd do that before a complete chain? Isn't that pointless too? Rates, criteria, etc can change. Just cos you can buy it today doesn't mean you'd be able to buy it in two months' time.

When i worked EA based they kept trying to get me to see people prior to putting offers forward but it just wasted everyones time (unless the buyer is actually looking for advice). So it was moved to neogiating on the property and then getting offers accepted subject to verification. This removed the worry that EA were going to use the information against the buyer but also did the checks before the vendor started spending money on their own onward move (and most importantly stopped wasting my time :-) ).
Nothing is perfect but that seemed a better fit than dragging 10 people in when only 1 is going to buy it

And the AIP is a very limited document. It shows they have an income that multiplies up and it shows they can pass a credit check (which is why no applications need to be run cause we already know you can pass a credit check).
Its a case of seeing what their plans are to make sure nothing will trip that applicaiton up that hasnt been part of the AIP checks. (this always applied more for people who had online AIP direct from bank)

• Any retained properties (might affect LTV of the onward purchase)
• Where is the deposit coming from? (if its a loan there is a good chance the lender will decline on application)
• Is the lender the AIP is with going to be happy with the type of property on valuation?

Just af ew examples of the 'sanity checks' done. Nothing invasive and nothing ground breaking. If a local broker was involved more often that not i would just call and check with them they were aware of all the details about the property. If its an online AIP or branch based 'AIP' from a cashier then id want to be sure the AIP had a good chance of going through to offer. Most of this can be done in a 10 minute phone call though

G_M

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?

Not naive, just unfamiliar with the process!


There is a difference between selecting a solicitor, and 'instructing' him. It does no harm to shop around early and decide who you plan to use. In my case I'd always visit them for a chat and make sure I was happy with them.


You are then in a position to move rapidly once you have selected a propety and had an offer accepted- you can give the estate agent/seller your solicitor's details immediately, which shows you are serious.


You will not actually be charged till you contact the solicitor, sign and return their terms of business, and 'instruct' them to start work.

kingstreet

eddddy wrote: »

The Property Ombudsman tells estate agents that they must do the following...

So does the EA Act 1979, but sadly, the Act is silent on how "qualification" should be achieved!