Currently buying/selling a house? How is it going? READ MOD NOTE POST #1

Salanky

brisan wrote: »

No he does not

Doesnt make sense sure then they will just keep losing sales. I viewed two other houses and that estate agent said he had to disclose that there was structural damage to one of the houses which put me off it straight away as I dont have a huge budget.

brisan

Salanky wrote: »

Doesnt make sense sure then they will just keep losing sales. I viewed two other houses and that estate agent said he had to disclose that there was structural damage to one of the houses which put me off it straight away as I dont have a huge budget.

Believe it or not some cash buyers dont get surveys done,and there are bad surveyors out there

Alrigghtythen

Salanky wrote: »

Doesnt make sense sure then they will just keep losing sales. I viewed two other houses and that estate agent said he had to disclose that there was structural damage to one of the houses which put me off it straight away as I dont have a huge budget.

I just pulled out of a sale because the seller didn't have the planning documents. One would imagine the sellers solicitors would make sure that the house was saleable early in the process but it didnt come to light until 11 months after the house was put up for sale and 5 months after sale agreed. Estate agents and solicitor I've dealt with just either avoid answering the phone or send half assed replies to letters and drag the process out. Theres not much transparency about the process.

into_the_wild

I have a newbie question. I'm currently in the process of buying a second hand property in which the current owners live. Now I am assuming that the current owners are relying on sale of this property to use those proceeds to buy elsewhere and move. Would that not mean I could be stuck sale agreed in limbo waiting for them to move on? I'm guessing most of second hand homes sell this way so this kinda scenario must be a common one.

Salanky

brisan wrote: »

Believe it or not some cash buyers dont get surveys done,and there are bad surveyors out there

Oh I believe it, there was a cash buyer involved last time it was sale agreed who was gonna buy it without survey but they had bought somewhere in the time it took for the sale to fall through. Im not gonna go with it if something comes up on the survey, sure I'm only planning to do this once so it has to be the right place or I'll regret it.

brisan

into_the_wild wrote: »

I have a newbie question. I'm currently in the process of buying a second hand property in which the current owners live. Now I am assuming that the current owners are relying on sale of this property to use those proceeds to buy elsewhere and move. Would that not mean I could be stuck sale agreed in limbo waiting for them to move on? I'm guessing most of second hand homes sell this way so this kinda scenario must be a common one.

Its a chain
If you are A
A wants to buy B house
B wants to Buy C house
C wants to buy D house
D wants to buy E house
if any one of the last 3 sales fall through or is held up because of
Finance
Survey
Legal delays
AN other
You could be months waiting

Markitron

Markitron wrote: »

He has AIP

AIP doesn't go to the underwriters. Its not the same thing. Hence being called "in principal".

8-10

[Deleted User] wrote: »

AIP doesn't go to the underwriters. Its not the same thing. Hence being called "in principal".

Depends on the bank. KBC do an underwritten AIP

Markitron

Deleted User wrote: »

AIP doesn't go to the underwriters. Its not the same thing. Hence being called "in principal".

Wait so you are saying people shouldn't bid on houses until they have full approval? Doesn't that come after they have a bid accepted?

Corruptedmorals

[Deleted User] wrote: »

AIP doesn't go to the underwriters. Its not the same thing. Hence being called "in principal".

So how would anyone bid then, considering full mortgage approval is done AFTER sale agreed?

Duke of Url

Markitron wrote: »

Wait so you are saying people shouldn't bid on houses until they have full approval? Doesn't that come after they have a bid accepted?

That wouldn't make sense to bid when you have full approval.

To get a loan offer, you need to supply them with the price of the house you intend to buy.

you wont have the price unless you have agreed a price with the vender.

You should get Sale Agreed at AIP level.

Markitron

Duke of Url wrote: »

That wouldn't make sense to bid when you have full approval.

To get a loan offer, you need to supply them with the price of the house you intend to buy.

you wont have the price unless you have agreed a price with the vender.

You should get Sale Agreed at AIP level.

Yea that's what I thought

Duke of Url

Markitron wrote: »

Yea that's what I thought

Im closing next week on a new build.

We had put a deposit down on the house at AIP level.

We also had a Solicitor at AIP level also.

Lolle06

We got an underwritten AIP from our house bank.

The full mortgage approval was granted for a certain property.

There are « quick » AIP’s you can get from some online mortgage calculators. Obviously they are not underwritten and have no value really.

If some banks get AIP from the underwriters then great. It hasn't been my experience. We had to get full approval based on the maximum we can afford, you don't need to be sale agreed or even have a house in mind at that stage. Its literally this is the max mortgage we will give you, fully approved.

If you are bidding on AIP without having been scrutinised by the underwriters then that's very risky. They could take a look at your bank statements, see something they don't like and refuse you a mortgage.

Like I said if some banks do this for AIP then that's great.

mojesius

We got written AIP signed off by underwriters, took a couple of weeks to get it from submitting the initial application. Got it for the max they'll lend us.

For the full approval, we just needed to get the valuation, mortgage protection and a recent utility bill to show we're still at the same address.

8-10

Deleted User wrote: »

If some banks get AIP from the underwriters then great. It hasn't been my experience. We had to get full approval based on the maximum we can afford, you don't need to be sale agreed or even have a house in mind at that stage. Its literally this is the max mortgage we will give you, fully approved.

If you are bidding on AIP without having been scrutinised by the underwriters then that's very risky. They could take a look at your bank statements, see something they don't like and refuse you a mortgage.

Like I said if some banks do this for AIP then that's great.

Yeah at least 3 banks I've dealt with did it like that, when was your approval?

jenno86

I got fully underwritten AIP from BOI this week, took exactly 2 weeks from when I got confirmation they had had all the docs they needed. I did question it and they came back to confirm it.

mimimcmc

got AIP at the start of July.

Made a couple of bids on a house since then, got into bidding war, i emailed EA this morning and said our final offer was x amount.

She has emailed and only now asked for loan offer and and proof of funds as she has this for the other bidders (even though this is our 3rd bid on this property).

So what exactly do i send her, just the AIP letter from the bank with the amounts taken off?? (do i need to take off the term as well or does that make a difference?)
And how do we show proof of funds?

Any help appreciated

woodchuck

So what exactly do i send her, just the AIP letter from the bank with the amounts taken off?? (do i need to take off the term as well or does that make a difference?)

We were able to get our bank to draw up an AIP letter for the exact amount we were bidding (lower than what they were willing to loan us) and for the address of the house in question. They advised us of this when we initially met to discuss AIP - it means you can prove you have AIP for the amount you're bidding, but doesn't let the cat out of the bag that you'd be able to go higher!

guyfawkes5

mimimcmc wrote: »

got AIP at the start of July.

Made a couple of bids on a house since then, got into bidding war, i emailed EA this morning and said our final offer was x amount.

She has emailed and only now asked for loan offer and and proof of funds as she has this for the other bidders (even though this is our 3rd bid on this property).

So what exactly do i send her, just the AIP letter from the bank with the amounts taken off?? (do i need to take off the term as well or does that make a difference?)
And how do we show proof of funds?

Any help appreciated

Her terminology seems a bit mixed up, but giving her the AIP with the amount blanked out is usually acceptable. If she presses for more, you can arrange for her to email your bank advisor with the bid amount to confirm you can meet the amount. The term shouldn't make a difference.

I haven't been asked for proof of funds before. Do they mean deposit? If you have AIP from the bank then this means they have already checked you have the appropriate funds. You may want to ask what she wants to find out here.

Graham

guyfawkes5 wrote: »

I haven't been asked for proof of funds before. Do they mean deposit?

Proof of funds is generally proof that you have the means to complete the purchase (cash/mortgage).

guyfawkes5

Which is a weird thing for as an EA to ask for as this is usually checked by the bank during the approval phase.

Graham

I'd be concerned to discover an EA was accepting offers without proof of funds. There's every chance some of the offers you bettered were little more than wishful thinking.

mimimcmc

guyfawkes5 wrote: »

Which is a weird thing for an EA to ask for as this is usually checked by the bank during the approval phase.

Ya i'm confused as to why she's asking for this.
Should i state that i don't need to prove that as that would already have been covered by the bank in the AIP? or should i ask her exactly what she wants?

Woshy

We bought recently and were asked for proof of funds. I sent a scanned copy of our AIP offer letter from the bank. I covered the amount we were approved up to because I didn't want the EA to know the max we could afford (we had a significant deposit) but left the amount they were willing to lend visible. That was all the EA needed

mimimcmc

Graham wrote: »

I'd be concerned to discover an EA was accepting offers without proof of funds. There's every chance some of the offers you bettered were little more than wishful thinking.

of course, but isn't it already proven is AIP stage by the bank?

It's funny that she's only asking this now on our 3rd and final bid...

guyfawkes5

Graham wrote: »

I'd be concerned to discover an EA was accepting offers without proof of funds. There's every chance some of the offers you bettered were little more than wishful thinking.

EAs usually check AIP, which covers a bank validating proof of funds themselves.

The original post described the EA looking for an 'offer letter' (presume they meant AIP) and proof of funds, which is extremely unusual and redundant even from their point of view. I presume this is crossed wires as it makes very little sense for them to seek this stuff out.

Woshy

oh and we were only asked for it once we had gone sale agreed. We had told him we had AIP etc, but the EA hadn't seen anything until that stage

mimimcmc

Woshy wrote: »

oh and we were only asked for it once we had gone sale agreed. We had told him we had AIP etc, but the EA hadn't seen anything until that stage

I was expecting it at sale agreed stage, as we've viewed a few houses and no estate agent in this area looked for AIP