Financial vetting process by estate agent

[LilMissSunshine9]

Hi

I am a first time buyer and want some advice about the process of buying.

I have offered on a house which was accepted but not taken off the market.

The estate agent is asking me to come in and see their financial advisor to verfiy I have the money to buy. I have already got an agreement in principle for a mortgage and have deposit money ready.

The estate agent has seen my agreement in principle but says I need to prove I have the deposit money and wants me to bring in bank statements proving I have the deposit money.

I am confused because I thought once my offer is accepted I simply phone my bank tell them to progress my application for mortgage and provide them with the estate agent details to contact them etc.

The estate agent was really rude to me forcing me to attend this meeting otherwise she cannot guarantee to her client (the seller) that I have the funds available.

It just seems strange as none of my other family members/ friends who recenlty bought had to do this.

On top of that I checked with one of their other branches about the vetting process and they said I only need to show my wage slips and proof of address and not funds.

I went back to my estate agent as I had to move the appointment and i asked her what I needed to bring and she said that only my AIP and proof of deposit and that if I don't she cannot say to the seller that they have seen evidence of complete funds. She went on to say that three others who have offered on the same house are coming in to be vetted for the house - but why would they if the vendor has accepted my offer.

anyone been through something similiar? Is this the norm now?

[crazyhead]

With ours, the EA asked us to have a chat to the financial adviser in the agency to clarify we weren't fantasists and were likely to get the mortgage, but no proof! (though we are selling to buy so a bit different).

Is it possible that your sellers have been stung before and have demanded this?

It is irritating, but I'd probably just do it if I liked the house and mutter under my breath about it....

[mum23girlys]

Not much help to you I'm afraid but we've not long accepted an offer on our house and our agent is refusing to mark it under offer because he has only seen the purchasers mortgage agreement in principle and no proof of deposit. We've had 2 other lower offers and both these people have asked me if we're sure we've accepted an offer as house still advertised. Our purchasers are also 1st time buyers so not sure if maybe it's the norm now. We've had our offer accepted on another house and never even had a mortgage in principle when offering. The agent has never asked. Both offers are in in writing now and both say pending mortgage application or somesuch.

Just keeping everything crossed that things work out for us

Best of luck

[kensingtonkat]

An AIP letter and proof of deposit is standard.

Any more than that, (appointments and so on) you're being played because they want you to sign up to their in-house mortgage provider.

Just tell them nicely that your finances are already in place and you weren't born yesterday .

IF the EA isn't happy with this, put a note through the door of the house you want to view with your contact details and ask the vendor to get in touch with you directly.

[BerthaTheBogBurglar]

We need to show the AIP letter and bank statements showing we had the deposit - I sent both to the EA via email.

As Kensington says, they are insisting on an appointment because they're hoping to sell you a mortgage and take a cut.

If the vendors have had 4 offers, they'll be taking the one they think is most likely to proceed. Until they've checked you all out, they don't know who that is.

[PigletJohn]

The financial adviser is actually a sales(wo)man who will try to get you to take out a loan, insurance or other product on which they will make a fat commission.

In their capacity as agents for the seller they do however want to see evidence that you are in a position to buy the house and not waste their time.

If you are taking in documents, write on them in large letters "this is provided to (Bloggs & Co Estate Agents) for the purpose of confirming my ability to purchase (27 Blogg Street) and for no other purpose."

That indicates that they are not permitted to use your personal and financial information to help them sell stuff to you.

[LilMissSunshine9]

Thanks all for your advice.

I stuck to my guns and told them they won't be seeing my bank statements and if I lose the house so be it. I used to be an estate agent so I am aware not to get emotionally tied to the house.

They swiftly rang back at the end of the day to say the vendor is still going ahead with me.

The EA now talks to me with alot of disgust in his voice when I ring to keep them updated on where I am in terms of instrucintg a valution and survey. I discovered that the EA is part of Countrywide Group and that my mortgage advisor (Bank) uses Countrywide Group for vlauation and survey - guess they are annoyed they aren't going to get any extra commission.

Ah well all is well in the end - ifngers crossed it all goes through now.

[vez123]

Good for you to stick to your guns! We are just in the process of buying our first house and we did not have to do any of these things. All that the EA hassled me for were the details of our solicitor.
I have heard of EAs making you speak to one of their financial advisors who just asks a few questions regarding income and savings but not actually asking for any proof.