First Time Buyer

[Deleted User]

What Would You Do

I have an offer on a house which has just been accepted.  Therefore I now have moved to sales agreed status.  This is on the condition that I must wait on the existing home owners finding a property. I was told that they had bid on a bigger property but last minute were out bid slightly and so there search resumes.

How long should I give them ? I understand it could take weeks even months to find a home they want, I know I have been looking a few months for a property like this to come on the market.  The estate agent suggested I get in contact with a solicitor soon .  If I did want to pull out can I in a few weeks if no progress is made ?

When should I get to a mortgage broker ? Would a mortgage broker do an application now for maybe a property that will eventually not progress for a couple of months ?

 

babyblade41

My advice is don't do anything until a full chain has completed, carry on looking at other properties whilst waiting

newsgroupmonkey_

Others may disagree, but in your position, I'd do the following:

1. Look for a solicitors that you fancy. You don't need to spend money straight away, but they usually like a retainer - a few hundred quid that they'll put towards the final bill.

2. There are a number of ways to get a mortgage. If you go to MoneySupermarket.com (or similar), you can find out the cheapest mortgage for your circumstances if you've got a decent credit history and deposit.
Or you can go to an independent mortgage advisor (Personally, I'd prefer one that you pay up front because as you'll find, they'll push you onto a mortgage that pays them the most). Or find an online one. Many use Town and Country. I used Habito and found their service excellent.

3. Get a mortgage in principle. It'll tell you what you're capable of borrowing and give you an idea of costs.

[Deleted User]

babyblade41 said:

My advice is don't do anything until a full chain has completed, carry on looking at other properties whilst waiting

Even though I have told the estate agent I'm ok with the arrangement ? Looking back now Im a bit worried I commited too early...is there any consequences or anything if I phoned the estate agent next week and say I've seen another house etc and want to pull my bid ? Maybe this happens quite regularly?

cymruchris

You've offered to buy on a place, but have no idea yet if you can get a mortgage? You haven't got an agreement in principle from anyone? 

If I was in your position I would at least make sure that I could actually get a mortgage for the value you've offered before doing anything else. How do you plan to choose your mortgage provider? Will you be using a broker?

gwynlas

People pull out of buying right up to the point of exchange. You could continue to look at and offer on other properties if you were inclined. Until you know that you can obtain a mortgage you cannot proceed anyway and as offers are made subject to survey this might throw up issues that frighten you away from this propert. If you are keen on this particular property and do not need to move from where yoou are you could wait for everything to tie up. Alternatively you could set a time of say three months for the sellers to find somewhere. Either way you are possibly not looking at moving for six months so use this time to sort out furnishings using all MSE avenues.

Myci85

If you pull your offer now, the sellers aren't going to be able to progress as no one will take an offer from them if their house isn't under offer. So I'd leave your offer in, and in the mean time keep looking at other places until either the seller finds somewhere and you can then start moving with mortgage/solicitors, or you find somewhere else you like that is chain free. 
You won't lose anything by retracting your offer until you have started solicitor work. 

RHemmings

[Deleted User] said:

babyblade41 said:

My advice is don't do anything until a full chain has completed, carry on looking at other properties whilst waiting

Even though I have told the estate agent I'm ok with the arrangement ? Looking back now Im a bit worried I commited too early...is there any consequences or anything if I phoned the estate agent next week and say I've seen another house etc and want to pull my bid ? Maybe this happens quite regularly?

OP, what is your current situation. Are you, for example, living with family? Are you living in rented accommodation and paying a high rent? Or something different? Are you single, or wanting to form a household with a partner. Are there children or children on the way? Is your current home suitable for your circumstances? 

I.e. if you end up waiting, is this a big problem or a small problem? 

If I was in your situation, and this is the house for you, then I would wait as others said, and get my own ducks in a line while waiting. If you haven't yet got a mortgage offer, then I would pursue that. So that you're ready if the chain suddenly forms (e.g. your seller finds another seller with no onward purchase.) Even if you don't end up buying this house, the process of arranging a mortgage may be good practice and give you more confidence for the future. 

Also, if I was you, I would approach the (seller's) estate agent, and say that I am a first time buyer and can they explain the process of forming a chain, and how long it typically takes. And ask them if it sometimes happen that the chain never forms (e.g. if other people give up.) I'd do that without saying that I'm in a hurry or having regrets; I'd leave it up to the EA to give me an idea of what's reasonable. Then, later on if things are not happening as expected, you have something to contrast the situation against. 

ReadySteadyPop

cymruchris said:

You've offered to buy on a place, but have no idea yet if you can get a mortgage? You haven't got an agreement in principle from anyone? 

If I was in your position I would at least make sure that I could actually get a mortgage for the value you've offered before doing anything else. How do you plan to choose your mortgage provider? Will you be using a broker?

Yes, get a lender`s valuation before planning how much to offer, chances are they will "down-value" now anyway.

TheJP

ReadySteadyPop said:

cymruchris said:

You've offered to buy on a place, but have no idea yet if you can get a mortgage? You haven't got an agreement in principle from anyone? 

If I was in your position I would at least make sure that I could actually get a mortgage for the value you've offered before doing anything else. How do you plan to choose your mortgage provider? Will you be using a broker?

Yes, get a lender`s valuation before planning how much to offer, chances are they will "down-value" now anyway.

A lender is not going to value a property unless a MOS has been issued. I think you mean a DIP/PIP.

ReadySteadyPop

TheJP said:

ReadySteadyPop said:

cymruchris said:

You've offered to buy on a place, but have no idea yet if you can get a mortgage? You haven't got an agreement in principle from anyone? 

If I was in your position I would at least make sure that I could actually get a mortgage for the value you've offered before doing anything else. How do you plan to choose your mortgage provider? Will you be using a broker?

Yes, get a lender`s valuation before planning how much to offer, chances are they will "down-value" now anyway.

A lender is not going to value a property unless a MOS has been issued. I think you mean a DIP/PIP.

I mean making your final decision how much to offer.