Don't want to ask a silly question to estate agents

[HungryButterfly]

My husband is going to buy me out so when I want to make an offer on a house what do I need to show the estate agent to show that I'm ready to buy?

I remember we couldn't make an offer on this house until we put our first house on the market so wondering what the equivalent of that is when we're not selling.

Thanks

Presumably your husband will need a new mortgage to buy you out? So you'll need to show his AIP for the mortgage.

According to the cash buyer of my last house, you don’t need to show them anything before you put an offer in. Good luck with it.

@WYorkshireRose no he's using some savings to buy me out

@BethTalk2thehandpodcast is a cash buyer someone who can buy the whole house with cash and no mortgage? Because I will be having needing a mortgage, I'll just have cash for the deposit.

You show proof of your finances, not your husband's. You need your Decision in Principle document.

You won’t be a cash buyer unless you have all the funds ready to go for the whole purchase

You presumably need to show proof of deposit (in either yours off your husband bank account) and a mortgage in principal if you are taking one out.

So you could do with talking to some sort of mortgage broker or similar, to get an idea of your affordability. Your husband needs to transfer the savings to you (if they're not in an account in your name already) because you'll need to provide proof of where the funds for your deposit come from. Once you've got an idea of your affordability and maybe an AIP (agreement in principle) along with a deposit in your name you should be good to go and start looking at homes from memory, that's all we were asked for. There might be some details needed around removing you from the current property but that would be worth checking with a broker / solicitor 😊

Are you both on the mortgage now? You won't need an estate agent if so, you just need to get approved for a mortgage in your own name then its transferred to you.

You need to have seen a mortgage advisor, who will be able to tell you how much how are able to borrow. This is a ‘mortgage in principle’, and will show the EA that you are serious, and as ready to go as you can be.

Why are you using an estate agent? Generally their job is to find a buyer and to make sure the sale goes through- so in your case you already have a buyer and the willingness to complete, so don't waste money on EA fees!

Why do you need an estate agent to be involved?

@caramond @Whataretheodds I will be buying a house that is advertised by an estate agent so to view them I will have to do it through an estate agent. My husband and I are not selling the house. He is keeping the house. He is buying me out.

@NancyJoan yes I have spoke to a few mortagage brokers and they have told me what I can afford but they haven't done an official "decision in principle"

Do you mean you’re buying him out? I am confused.

But the equivalent of having an offer on your house is just telling the estate agent you don’t have a property to sell.
The financial bit can come a little later usually.

He is buying me out. He's giving me money and the house will no longer be mine.

Hi OP

So you need to show the estate agent that you are able to proceed with the sale on their timetable. Not having a property to sell puts you in a great position, it makes you an attractive buyer already as you will be the bottom of any chain.

You’ll need to prove where the money is coming from ie show them a bank statement with whatever money you have, plus an agreement in principle from a mortgage lender to lend you up to X. A mortgage broker can sort that out for you easily but you can also go direct to the bank for this document if you have found a good deal on a mortgage comparison site.

Ps but you don’t need the mortgage in principle to make an offer and have it accepted, the key thing is telling the agent you have nothing to sell and are funding the purchase theough a combination of savings and mortgage.

We bought recently after renting for a while after selling a previous property. Put in an offer without having to show anything at all, they just wanted me to instruct a solicitor asap (I assume to show we were serious). This was in the last 2 years. I think it depends on the EA

So your husband in buying you out of your house. You are then going to look to buy another house on your own?

In terms of him buying you out, I assume that your current mortgage is being paid off and he will be taking out a new one on the property in his name only and sounds like hi will also be transferring you some cash?

You will need to get an agreement in principle from a mortgage lender. This will be determined by your earnings/affordability and how much deposit you have.

Few points to note, the estate agent will steer you to their in house mortgage advisor and I would resist that as much as you can. Find yourself and independent mortgage broker who will be able to find you the best deal across the entire market for your circumstances.

Also, don't share anything with the estate agent than you have to about your financial situation. The AIP should be sufficient to show that you are a serious buyer. Remember the estate agent works for the seller, not for you.

So you'll be a chain free buyer.

You'll need to prove to them that you can afford properties you're looking at and to do that you'll need an agreement in principle from a mortgage lender.

Look at some online calculators to work out what you can afford based on your deposit and salary then either talk to a broker, or go direct to a lender for an AIP.

Have you got a consent order drawn up by solicitors saying that he will pay you £x amount and remove you from the mortgage and you will sign over your share in the property?