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Maybe a stupid question but it's been a while since I bought a house. The missus and I are looking to buy this autumn or next year when we have a 25% deposit saved. We have seen an ideal property in a good location, which is 15% over our max. The wife wants to view it, I'm not so fussed as I'm confident other properties will come down to our level in the coming months. If we did contact the agent for a viewing do we need to show any evidence of our position to buy? We are interested in the house but not to buy now.

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Maybe a stupid question but it's been a while since I bought a house. The missus and I are looking to buy this autumn or next year when we have a 25% deposit saved. We have seen an ideal property in a good location, which is 15% over our max. The wife wants to view it, I'm not so fussed as I'm confident other properties will come down to our level in the coming months. If we did contact the agent for a viewing do we need to show any evidence of our position to buy? We are interested in the house but not to buy now.

Short answer, no.

long answer, nooooooooooooooooooooooo.

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Maybe a stupid question but it's been a while since I bought a house. The missus and I are looking to buy this autumn or next year when we have a 25% deposit saved. We have seen an ideal property in a good location, which is 15% over our max. The wife wants to view it, I'm not so fussed as I'm confident other properties will come down to our level in the coming months. If we did contact the agent for a viewing do we need to show any evidence of our position to buy? We are interested in the house but not to buy now.

You don't even need to show anything when you make an offer.

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You don't even need to show anything when you make an offer.

As I am a cash buyer, when I've made an offer on a house, the EA wanted to see proof of my funds.

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As I am a cash buyer, when I've made an offer on a house, the EA wanted to see proof of my funds.

But if you didn't show them, he would still have to pass the offer on (although he may tell the vendors he couldn't confirm that its a cash offer).

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Short answer no, long answer not yet... It makes sense when you are viewing seriously to see a mortgage advisor early and get an agreement in principle so that you know what you can reasonably afford and that you are not viewing properties completely outside your price range. You won't get a mortgage offer until you have made a full application, had a survey and the application has undergone underwriting.

As I am a cash buyer, when I've made an offer on a house, the EA wanted to see proof of my funds.

An agent has a duty under the ombudsman code to the vendors to ensure that any buyer has the ability to pay the amount offered. This is usually done after an offer has been accepted and can comprise seeing bank statements, mortgage AIP certificates, a letter from solicitor or IFA or evidence of some other form of investment to be liquidated prior to completion.

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But if you didn't show them, he would still have to pass the offer on (although he may tell the vendors he couldn't confirm that its a cash offer).

I will remember that. I find it intrusive that people want to see my bank accounts. The EA's I've dealt with have been a bit snotty about the funds, asking to see it up front. But, I must admit I've not tried an offer without the proof. I will give it a go.

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This is usually done after an offer has been accepted and can comprise seeing bank statements,
So I could say then - if offer accepted I will be forthcoming with my proof of funds, but not before?

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If an agent was to ask to see proof of funds from me, (say a bank statement) my main worry is that they might see I have additional money in the account.

What is to stop them coming back after a fake conversation with the seller, to then say to me "well the seller wants another 20K, they just won't budge", (with the subtext being that they know I can "afford" it?)

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Thanks for the info. If I get an agreement in principal will that effect my credit score?

A formal application defiantly does, I don't think an agreement in principle will but its best to confirm these things with the people you're applying for the mortgage with. I don't think AIP are important, as long as your realisitic about how much you can borrow, as it will still come down to what the surveyor says.

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I will remember that. I find it intrusive that people want to see my bank accounts. The EA's I've dealt with have been a bit snotty about the funds, asking to see it up front. But, I must admit I've not tried an offer without the proof. I will give it a go.

If a "cash buyer" refused to give me any evidence at all of proof of funds I would advise the vendor to keep the house on the market even if they decided to accept the offer.

Put the boot on the other foot, if you were selling your home and the buyer was using his cash status to secure a lower price, I bet you would be mighty p!ssed off two months later to find out that the reason the buyer hadn't exchanged was that he was still waiting for his mortgage offer! Of course it would be the agent's fault for not checking out the buyer properly. We're damned either way.

It has happened to me personally three times where the buyer refused to prove funds and there was problems, because there was mortgages involved. I guarantee the vendors went schizophrenic every time!

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If an agent was to ask to see proof of funds from me, (say a bank statement) my main worry is that they might see I have additional money in the account.

What is to stop them coming back after a fake conversation with the seller, to then say to me "well the seller wants another 20K, they just won't budge", (with the subtext being that they know I can "afford" it?)

This is the main reason I woulnd't do it, say that proof of funds will only be given after an offer has been accepted.

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So I could say then - if offer accepted I will be forthcoming with my proof of funds, but not before?

Sure that seems fine to me. I would be happy to accept that prior to pro-formaing the deal.

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If an agent was to ask to see proof of funds from me, (say a bank statement) my main worry is that they might see I have additional money in the account.

What is to stop them coming back after a fake conversation with the seller, to then say to me "well the seller wants another 20K, they just won't budge", (with the subtext being that they know I can "afford" it?)

Tell him you've just put down a deposit for a new car or something and that it is none of his effing business. Sold a house once to a buyer for about £200k. He pitched up with an HSBC premier statement showing over 2 million quid in the account. The 200k was pocket change to him. The agent is also governed by the data protection act and it would be an offence to tell the vendor how much the buyer had and frankly immoral to tell the vendor he could afford more.

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Thanks for the info. If I get an agreement in principal will that effect my credit score?

Possibly, but AIPs can be offered by some lenders on initial information and the in principle bit is the full credit scoring and underwriting. Ask the advisor in advance if they will run a credit check before getting the AIP. I think it is an offence to run a credit check without warning the applicant.

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Tell him you've just put down a deposit for a new car or something and that it is none of his effing business. Sold a house once to a buyer for about £200k. He pitched up with an HSBC premier statement showing over 2 million quid in the account. The 200k was pocket change to him. The agent is also governed by the data protection act and it would be an offence to tell the vendor how much the buyer had and frankly immoral to tell the vendor he could afford more.

I dont think all estate agents are quite as good/honest as yourself............unfortunately :)

To the OP et al....If it was me I would ask my solicitor to confirm to the agent that sufficient funds were available. PbroAgent is right in that its better for everyone to be sure upfront (after offer accepted of course) to avoid problems later.......have personally been in a chain where more than one person was 'unclear' about financial status!

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Maybe a stupid question but it's been a while since I bought a house. The missus and I are looking to buy this autumn or next year when we have a 25% deposit saved. We have seen an ideal property in a good location, which is 15% over our max. The wife wants to view it, I'm not so fussed as I'm confident other properties will come down to our level in the coming months. If we did contact the agent for a viewing do we need to show any evidence of our position to buy?.

Some people just visit houses for a "fun" afternoon out.

so no!

tim

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You've got to be in it to win it. I also think prices will come down to my price level, but it's a long wait - better to visit places, get an idea of the market and put in some cheeky offers. If one's accepted it could save you a year wait

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Some people just visit houses for a "fun" afternoon out.

tim

it is damn annoying when agents are bringing or dragging anyone they can to view and often you can tell the people are not interested the minute they get in the door - yet to the agent it just implies they are getting interest in property aaaarrrrrr.

Many years ago we were speaking to parents of a school chum of our son and they admitted to just visiting agents and arranging viewings to be nosy and see how folk lived, furniture they had etc.

Fir us we have ajways had a major tidy up just before due visit time and it

t is so annoying to be doing ut fir timewasters

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You only need to provide proof of funds (ie to prove that you have the funds to proceed with the purchase at the accepted offer level) once an offer has been accepted. To do this you should always only use a letter from your solicitor who writes a short letter confirming that you have the funds to proceeed with the purchase of the property. This letter should not provide any details about your finances. A great many Estate Agents are unethical, ruthless, etc. and if they get sight of any information that suggests or confirms that you have more funds available than the agreed price for the property many of them will start messing you about trying to get you to raise the offer further.

When asked for proof of funds I inform the Estate Agent, in a business and polite manner, that they will receive a letter from my solicitor confirming that I have sufficient funds to proceed with the purchase. If they then try to push me into showing a mortgage in principle, Bank statements, etc. I just reiterate that a letter from my solicitor will provide the necessary proof.

My offers are always made on condition that the property be withdrawn from the market. On occassions I have stated, again in a polite and business like manner, that if the property is continued to be marketed then my offer will be reduced by a further 5% off the asking price. I use this also, if another offer mysteriously appears and I am asked if I want to increase my offer - I say no, my offer remains of the table but reduced by 5% unless they get back on track with my purchase within 24 hours. Amazing how 'other' offers can disappear all of a sudden.

Edited by Alfie Moon

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They sometimes quiz you but a lot of the time it's a very casual affair. Gets them out of the office etc...

Unfortunately they keep talking when you're looking around and don't always bring important information with them (when does the lease expire).

Oh, and a lot of them are of the opinion that if you make an offer they consider to be too low, they won't pass it on despite them being legally required to. "Oh, that was a formal offer?".

Anyone can be an EA ;)

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If a "cash buyer" refused to give me any evidence at all of proof of funds I would advise the vendor to keep the house on the market even if they decided to accept the offer.

Put the boot on the other foot, if you were selling your home and the buyer was using his cash status to secure a lower price, I bet you would be mighty p!ssed off two months later to find out that the reason the buyer hadn't exchanged was that he was still waiting for his mortgage offer! Of course it would be the agent's fault for not checking out the buyer properly. We're damned either way.

It has happened to me personally three times where the buyer refused to prove funds and there was problems, because there was mortgages involved. I guarantee the vendors went schizophrenic every time!

Got to say, i always enjoy your posts. Great to see your honest input here.

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My views are:

An agreement in principle can damage your credit score and is only valid a limited time, so if your intention is to buy in the fall or winter, I don't see the point apart the fact that you will know if your project is doable, but if you already know that well don't bother.

I am in the same case, will buy in the fall if I find the right property and will start viewings in April as I want to see what I can afford in different areas.

It absolutly does not mean that you are not serious, you said it yourself you want to buy in the fall or winter!

Good luck

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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