Proof of funds & ability to perform the agreed purchase price

Sunrise_Sunset

Hi All,
So I have the approval in principle. Can I just forward this to cover the Estate Agents' request?
Which parts should I redact? I do not want them seeing everything. For example, we have the ability to pay more but bargained them down a few k and don't want them to know that.

stdidit

If they have requested it, I would just send it to them.
I wouldn't hide anything either, there is nothing wrong with bargaining down the price a little. Your offer should be based on what the property is worth to you, nothing to do with how much you are approved in principle for.
If you want to be cautious, make sure you have some proof of the agreed price.

tigger123

Sunrise_Sunset wrote: »

Hi All,
So I have the approval in principle. Can I just forward this to cover the Estate Agents' request?
Which parts should I redact? I do not want them seeing everything. For example, we have the ability to pay more but bargained them down a few k and don't want them to know that.

I'd redact the amount you're approved for. It's none of their business, and it doesn't serve you in anyway them having that info.

Balanadan

tigger123 wrote: »

I'd redact the amount you're approved for. It's none of their business, and it doesn't serve you in anyway them having that info.

How will the estate agent know what you've been approved for then?

As has been said before, estate agents couldn't give a toss about who you bank with, how much you have in your account, etc. as long as you can afford the property that you're bidding on.

Dolbhad

You can give the details to your solicitor and your solicitor can confirm you have funds to purchase the property for agreed amount. I’ve done this and auctioneer has never had any issues. If I was selling a property I would want auctioneer to check this with purchaser

Sunrise_Sunset

Dolbhad wrote: »

You can give the details to your solicitor and your solicitor can confirm you have funds to purchase the property for agreed amount. I’ve done this and auctioneer has never had any issues. If I was selling a property I would want auctioneer to check this with purchaser

Do you remember how much your solicitor charged for this?

Dolbhad

Sunrise_Sunset wrote: »

Do you remember how much your solicitor charged for this?

It wasn’t extra. They charged a flat fee for the purchase. Had gotten a quote with their fee and outlay at the start and bill was the exact same on closing. My solicitor was in Cork.

the_syco

Sunrise_Sunset wrote: »

Which parts should I redact?

The banks are usually okay with giving a letter saying that you can pay X amount, with X being the amount that you are bidding.

If you show your hand, the EA will use silly tricks to up the price, as remember; the seller is the EA's client, not you.

Sunrise_Sunset

Are there any ploys I could use to delay paying a booking deposit on one property, while waiting to hear back from the underwriters if I can borrow extra funds to buy our first preference property?

Fol20

the_syco wrote: »

The banks are usually okay with giving a letter saying that you can pay X amount, with X being the amount that you are bidding.

If you show your hand, the EA will use silly tricks to up the price, as remember; the seller is the EA's client, not you.

Do you have any proof of this or is it a chat in the pub where a friend of a friend said it. As another poster mentioned, all they care about is closing the deal so they get their cut. They wont risk a deal falling through for a small amount of money. A 10k increase in bidding is worth a lot to the seller but to the ea its only an extra 100e.

Fol20

Sunrise_Sunset wrote: »

Are there any ploys I could use to delay paying a booking deposit on one property, while waiting to hear back from the underwriters if I can borrow extra funds to buy our first preference property?

If your really worried about an ea to do some dodgy dealing, ask your solicitor to confirm you have funds without revealing your total available pot.

If you start delaying paying the deposit now at the early stages, you can potentially cause the deal to fall through. I have both bought and sold properties and if i get the feeling it wont close on wither side, ill drop out myself. I wouldnt care the reason, i just dont want to waste my time.

Sunrise_Sunset

Fol20 wrote: »

If your really worried about an ea to do some dodgy dealing, ask your solicitor to confirm you have funds without revealing your total available pot.

If you start delaying paying the deposit now at the early stages, you can potentially cause the deal to fall through. I have both bought and sold properties and if i get the feeling it wont close on wither side, ill drop out myself. I wouldnt care the reason, i just dont want to waste my time.

What I mean is, we are interested in more than one property. We made bids on both. Our first preference property as things stand, we haven't been approved for the money for, we are waiting to hear back from the underwriters. Our mortgage advisor told us it shouldn't be a problem. We have the savings and the means to pay it, and we are only asking for 5k more to borrow. We are still giving a 16% deposit and are borrowing less than 3.5 times the salary.

However, in the meantime, the EA from our second preference property came back to us and said the vendor has accepted our offer. On the basis that things move along pretty quickly. They want the booking deposit asap. I know that this is refundable but I'd still rather not pay it when I could find out within a day about our first preference property.We do risk losing our second preference though if we stall.

Are there any ploys I can use to stall this? Or should I just let the second preference property go. They do have another offer on it that they would accept. Also, will I burn my bridges with this EA?

Dav010

I understand what you are asking op, but you are bidding on a property you don’t have mortgage approval for, and reluctant to pay the deposit on one you do. If your bid on the second one was accepted based on the sale going through without delay, the EA/seller will see it as a bad omen that you delay the first step, paying the deposit. I suspect this would indeed burn bridges with the EA.

Has your bid been accepted on your preferred property?

Claw Hammer

Sunrise_Sunset wrote: »

Are there any ploys I could use to delay paying a booking deposit on one property, while waiting to hear back from the underwriters if I can borrow extra funds to buy our first preference property?

Try that and you will be filed under M for messer. Pay the deposit and stall signing contracts through you solicitor if you are trying to keep your hand in for another property. You can take your deposit back before signing if needs be.

SozBbz

Find out exactly how long you'll need to hold out. You could possibly stall by a day or two by feigning work commitments. I just paid a deposit a few days after verbally agreeing, but due to the value my bank wanted to post me an authorisation code which took a few days. As has been pointed out deposits are fully refundable prior to signing contracts so this shouldnt be an issue, but you are acting in bad faith.

But be honest with yourself here, you are messing these people around. They'll not be happy when you (likely) pull the plug. If you're not that mad on this house, why are you trying to hold on to it?

Sunrise_Sunset

We got approved today and just went sale agreed for the first preference property.