Potential issues putting offer in on house?

soplum

MovingForwards said:

Put your offer in, if it's accepted it could take the EA a week or so to send the memorandum of sale out. You then need to provide ID to the solicitor, that takes you to June. Mortgage application then goes in.

Do we tell the seller that we cannot apply for mortgage until start of June?
We are first time buyers with 85% LTV.

soplum

Mickygg said:

You have a MIP so that's fine as it shows you can get the mortgage. 
Put the offer in. 3 weeks will be taken up by price negotiations, sales memo, solicitors details, starting searches. 

Do we tell the sellers that we cannot apply for mortgage until the start of June? 

Lewist123

soplum said:

Mickygg said:

You have a MIP so that's fine as it shows you can get the mortgage. 
Put the offer in. 3 weeks will be taken up by price negotiations, sales memo, solicitors details, starting searches. 

Do we tell the sellers that we cannot apply for mortgage until the start of June? 

I wouldn't. Like others have said - the actual getting the mortgage part of the process generally doesn't take that long compared to contracts/searches etc. If you put an offer in now, it'll probably be a couple of weeks before you even start to see any movement. You will be waiting on MOS, ID checks etc. There's usually nothing 'waiting' on the mortgage - by that I mean the whole process can carry on as normal regardless of when you actually apply for your mortgage, it can happen at any point between offer and exchange. June will come around quickly! Good luck!

Thrugelmir

Putting an offer in doesn't guarantee that it's going to be accepted. One step at a time. 

The vendors may , once you've agreed in principle on a price, need to find a property of their own. Time soon passes. 

soplum

Thrugelmir said:

Putting an offer in doesn't guarantee that it's going to be accepted. One step at a time. 

Of course! But the house has been on the market for a month and a bit, we are FTB, we have extra cash to bid if needed! Just crossing all fingers as we love the house 

AdrianC

soplum said:

AdrianC said:

soplum said:
We are looking at 85% LTV

Not a lot of scope for downvaluation, then.

What does that mean? (sorry for the silly questions)

You offer £200k. 85% LtV means £30k equity, £170k mortgage.
The lender's surveyor downvalues the property to £190k. The lender views the £170k mortgage as 90% LtV. Maybe doable.
But what if the surveyor downvalues it to £185k, 92% LtV? Or £180k, 95% LtV?

soplum

AdrianC said:

soplum said:

AdrianC said:

soplum said:
We are looking at 85% LTV

Not a lot of scope for downvaluation, then.

What does that mean? (sorry for the silly questions)

You offer £200k. 85% LtV means £30k equity, £170k mortgage.
The lender's surveyor downvalues the property to £190k. The lender views the £170k mortgage as 90% LtV. Maybe doable.
But what if the surveyor downvalues it to £185k, 92% LtV? Or £180k, 95% LtV?

Ah I see! We almost have enough for 20% but want some cash for buying furniture etc. 

The properly is identical to others in the terrace and is priced the same as one that sold a few weeks ago there so fingers crossed 

eddddy

I'm not sure that I completely agree with others.  Once you have an offer accepted, if the seller wants a quick sale, a 'good' EA is likely to chase you aggressively about getting your mortgage application started. If you keep trying to fob them off for 2 or 3 weeks, without explaining why, they're likely to get suspicious and think you're a timewaster.

But if the seller isn't after a quick sale, for example because they haven't found a place to buy, they might welcome a 2 or 3 week window to find their next property. And it might take weeks or months for the upward chain to be complete anyway.

I would start off by asking the EA about the sellers position - have they got their onward plans in place? Are they looking for a very quick sale? Or is there likely to be a long gap for an upward chain to form?  Then you can start to formulate your strategy for offerring.

RedFraggle

You said you're applying 3 months before your job start date. Will there be a probationary period to the job? 

soplum

RedFraggle said:

You said you're applying 3 months before your job start date. Will there be a probationary period to the job? 

Permanent contract based on the completion of 2 year newly qualified teacher period. (My broker has worked with teachers before, including a teacher that only had a 1 year maternity cover contract)