House Buying Question

tntcoder

tntcoder

tntcoder

Soldato
Joined
7 Apr 2004
Posts
4,212
Hi,

If you want to make a standard subject to contract offer on a house, how/when does the mortgage fit into the buying process?

Guess I'm really asking can I make an offer with only a verbal agreement from a bank on a mortgage amount? Or does the estate agent require some kind of formal confirmation of a mortgage offer in order to pass it onto the seller & take it off the market if they accept?

Hoping I can just do it with a simple phone call to the agent and then if they agree to the amount I can actually start things off with the bank.

Thanks :)
 
correct, they will provide a letter of "agreement in principle" when you have that then you should be ok to make an offer
 
Rotty said:
correct, they will provide a letter of "agreement in principle" when you have that then you should be ok to make an offer
Click to expand...

In theory. I had my agreement in principle, made my offer, had it accepted, and when I went to borrow what HSBC had agreed to lend me, they were suddenly like "ooh err, we're going to have to think about this". :confused:

It turns out, upon asking around after the fact, that HSBC's agreements in principle aren't worth the paper they're written on, and they pull stunts like this all the time. After a week or two of being given the run-around, I did eventually get them to lend me what I asked for, but only by threatening to go to another bank if they didn't give me a decision by the end of the day.
 
Letter to show your mortgage promise is ideally what you need so they don't waste time taking it off the market. It takes literally an afternoon to do, just take two copies of ID, your most recent payslips for past 3 months and you're good to go.
 
SlyReaper said:
In theory. I had my agreement in principle, made my offer, had it accepted, and when I went to borrow what HSBC had agreed to lend me, they were suddenly like "ooh err, we're going to have to think about this". :confused:

It turns out, upon asking around after the fact, that HSBC's agreements in principle aren't worth the paper they're written on, and they pull stunts like this all the time. After a week or two of being given the run-around, I did eventually get them to lend me what I asked for, but only by threatening to go to another bank if they didn't give me a decision by the end of the day.
Click to expand...

Its an agreements in principle the bank can refuse to offer you a mortgage afterwards.
 
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