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sallygreen100

First Time Buyer/offer Advice Wanted

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Hi

I'm a first time buyer and just made my first offer.

Just need some advice.

here are the facts/info:

(west yorkshire)

the house price = 135k

price of last house sold = 110k

my offer = 105k or bank value

I have a deposit (25K, 27 if pushed) plus discussed mortgage with bank.

The estate agent asked me if i had a deposit and I said yes - they want to meet with me to discuss finances. is that normal practice? what should I do?

thanks.

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Lots of estate agents have mortgage brokers who work within the estate agency. EAs will try and persuade you to use their mortgage broker so that their company can get the commission from your mortgage. The other advantage for the EA is that he can walk over to the mortgage broker and ask him exactly how much you can afford (so they know if you are able to raise your offer). Bear in mind that EAs represent the seller, not the buyer.

Personally, I dislike and distrust EAs and would never use their mortgage broker. The maximum mortgage you could possibly get is none of their business.

If you feel the same way as I do, you might tell the EA that you have a long relationship with your bank and wish to get a mortgage with them, and that they've offered you a good deal etc (but do shop around yourself, trying independent mortgage brokers too).

It may be that the EA is just trying to establish how solid your offer is - if you haven't got a mortgage agreed in principle with your bank, it might be worth doing this so that they can see that you are serious.

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Lots of estate agents have mortgage brokers who work within the estate agency. EAs will try and persuade you to use their mortgage broker so that their company can get the commission from your mortgage. The other advantage for the EA is that he can walk over to the mortgage broker and ask him exactly how much you can afford (so they know if you are able to raise your offer). Bear in mind that EAs represent the seller, not the buyer.

Personally, I dislike and distrust EAs and would never use their mortgage broker. The maximum mortgage you could possibly get is none of their business.

If you feel the same way as I do, you might tell the EA that you have a long relationship with your bank and wish to get a mortgage with them, and that they've offered you a good deal etc (but do shop around yourself, trying independent mortgage brokers too).

It may be that the EA is just trying to establish how solid your offer is - if you haven't got a mortgage agreed in principle with your bank, it might be worth doing this so that they can see that you are serious.

I think I have the same dis-trust.

I have a mortgage agreed in principle document with my bank (although a few months out of date, but can get a new one quick easily).

Do I meet with them? do I show them the mip docs?

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Imagine if you went to buy a car, but the price was not fixed. Then the salesman says - before we sell you the car, we want you to speak to our car loan arranger who can work out how much you can afford. Don't worry! I promise he won't tell me the most you can spend.

********, you would say, do you think I was born yesterday.

And yet people do exactly this at estate agents.

Just say that you have a suitable deposit, and a suitable mortgage, and you don't trust estate agent mortgage brokers after what happened to your close mate when the police had to be involved......

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The agents need to do due diligence on you, so they can tell whether to recommend your offer to the vendor.

If they know you can realistically raise the money you've offered (and come across as serious about it in general), then they can put you forward as a good buyer. Meaning they'll work hard to bring the vendor's price expectation down (as well as your offer up) to get a sale. If not, they're more likely to recommend dismissing you as a probable time-waster.

So it's definitely worth your while to demonstrate you have the means to raise the money. One way to do that is to see their mortgage broker. Paperwork from elsewhere - short of an expensive solicitor's letter - may or may not do the job.

Take with a pinch of salt. I don't know any of that: it's just what I'd guess.

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I think I have the same dis-trust.

I have a mortgage agreed in principle document with my bank (although a few months out of date, but can get a new one quick easily).

Do I meet with them? do I show them the mip docs?

Personally, I wouldn't meet them. I would emphasise that I have a long relationship with my bank and that they have given me a good deal, so I'm not interested in going elsewhere . I'd emphasis that I have a mip and am prepared to prove it. If the mip docs don't have any financial information on them, then I'd show them (but definitely not if the mip is greater than you have offered).

The best way to do it might be to ask your bank to send the EA a letter stating that "Sally has a mortgage in principle for £105k". Even if you have a mip for £110k.

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they want to meet with me to discuss finances. is that normal practice? what should I do?

I just wanted to echo the advice given in this thread. DO NOT MEET WITH THE EA'S FINANCIAL ADVISER.

You have a mortgage agreed in principle, you need nothing else. Put your offer in and wait.

Remember that they will probably turn down your offer. This always happens. Then they will ask you if you are willing to increase your offer. REFUSE and WAIT. Tell them you have seen another property and want to put an offer in their first. They will usually phone you back presto to say the seller has changed their mind.

There is another fantastic thread on this forum. I would recommend having a read through that as well:

http://www.housepricecrash.co.uk/forum/index.php?showtopic=159925

And good luck. I wish you all the best :)

Edited by 98% Chimp

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I just wanted to echo the advice given in this thread. DO NOT MEET WITH THE EA'S FINANCIAL ADVISER.

You have a mortgage agreed in principle, you need nothing else. Put your offer in and wait.

Remember that they will probably turn down your offer. This always happens. Then they will ask you if you are willing to increase your offer. REFUSE and WAIT. Tell them you have seen another property and want to put an offer in their first. They will usually phone you back presto to say the seller has changed their mind.

There is another fantastic thread on this forum. I would recommend having a read through that as well:

http://www.housepricecrash.co.uk/forum/index.php?showtopic=159925

And good luck. I wish you all the best :)

I think i'll follow the general advice on this thread - i won't meet with them.

I'll ring them up tomorrow and ask why they wanted to see us (my husband answered when they rang and made the offer - thats when they asked all the questions and asked for a meeting).

I'll turn them down using the reasons mentioned on this thread if its to met a financial adviser and ask them to relay our offer.

I'm not too fussed if it gets turned down as we are not in any rush and are casually looking - but will buy if the price is reasonable.

Thanks for all the advice.

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  • 239 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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