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Original poster

Sharing proof of decision in principle with estate agent? :/

28 replies

EarthSight · 05/09/2023 21:07

I've found a house I'd like to buy, and am thinking of making an offer. I'm a first time buyer who has waited for a very, very long time for this opportunity.

I really want this house and would like the estate agent to take it off the market as soon as the offer is accepted - that means cancelling current viewings and taking it own their own site and websites like Rightmove. To my understanding this is the vendors decision, but my estate agent has also said they only do this when people can provide proof of a decision in principle.

I'm uncomfortable with doing this as then won't the estate agent know how much of a mortgage I can apply for? I am not maxing out on that amount because if I borrowed the max the bank is willing to lend me, my monthly bills would be really unaffordable, and I also need money put-by to buy furniture and some work on the house is also need. All the bills would be on me as I'm single.

I can show this of course after the seller has accepted the offer, but I guess my worry is that the sale will somehow fall through or the seller will change their mind (not sure how often this happens). The main estate agent of the area will then know how much I'm allowed to borrow which in future dealings might work against me. It's this sort of thing that has so far put me off using in-house mortgage brokers as well.

It's a lot of ifs and buts I guess, but has anyone else experienced that?

OP posts:
PinkFootstool · 05/09/2023 21:08

Very normal. They need to be able to state to your seller that you're a genuine offer and able to go ahead with a prospective sale. No need to justify how much your offer is or how much your AIP is for.

tutormuggins · 05/09/2023 21:08

An offer has to be verified anyway - they ask for proof of funds / mortgage broker - just do it

ssunflowers · 05/09/2023 21:09

Estate Agent here! You won't get that house if you don't show proof of funds. Best to do it asap and get it secured :)

KievLoverTwo · 05/09/2023 21:10

I am always wary too.

You can tell the EA to talk to your conveyencer or mortgage broker to confirm you meet affordability criteria if you like. Whether they chose to accept this or not is anyone's guess.

Montydin · 05/09/2023 21:10

It’s normal, the estate agent just wants the sale done they won’t be interested in trying to get a few more £s from you.

ssunflowers · 05/09/2023 21:11

Also, we don't tell them what your DIP says, you might not be borrowing that much, they tend to be the max you can afford on paper, not neccessarily what you're lending

Clymene · 05/09/2023 21:12

Why would they take it off the market if they don't know you have the money to buy it? Confused

doroda · 05/09/2023 21:13

It's normal. After we made offers verbally I always followed up with an email, attaching the DIP, to show we were serious and organised.

Original poster
EarthSight · 05/09/2023 21:20

Clymene · 05/09/2023 21:12

Why would they take it off the market if they don't know you have the money to buy it? Confused

I'm not saying the request is unreasonable. Just that I don't trust estate agents with that info I guess!

OP posts:
caringcarer · 05/09/2023 21:21

It's usual to share DiP and a recent bank statement showing you actually have the deposit with EA. You won't get the house if you don't.

nogracias · 05/09/2023 21:21

In the process of selling our house.

I wouldn't have accepted the offer without the DIP in place with evidence provided.

Namemchangeforthispostonly101 · 05/09/2023 21:24

This reply has been withdrawn

The OP has privacy concerns, so we've agreed to take this down now.

Lulubo1 · 05/09/2023 21:33

Very normal. We were first time buyers last year. Our DIP was £45k more than the house we put an offer on. The EA knew what our DIP was and took our offer to the sellers. I think most EA's understand that just because your DIP is one value, not everyone wants a mortgage for thar exact value.

CerealUnderachiever · 05/09/2023 21:39

Hi OP,
I bought in May and put in several offers before I got one through. For a couple of offer submissions I had to submit details of AIP and proof of / statement about level of savings, and definitely at the offer accepted stage. Please don't worry it's just part of the process. As you say the AIP is extremely limited and in today's climate when it comes to converting to an actual mortgage offer the level offered is regularly downgraded- so the agent really just wants to tick the procedure box and isn't fussed about any more detail.

Good luck with it all :)

Original poster
EarthSight · 05/09/2023 21:51

Lulubo1 · 05/09/2023 21:33

Very normal. We were first time buyers last year. Our DIP was £45k more than the house we put an offer on. The EA knew what our DIP was and took our offer to the sellers. I think most EA's understand that just because your DIP is one value, not everyone wants a mortgage for thar exact value.

Yeah.....in my case it would just make mortgage repayments unfeesable or very risky. I happen to be on a decent salary right now, but it's a new, unstable industry and I have to be prepared to be on a low wage if I lose my job and need to quickly get another one (I live in a very rural are so jobs are limited and wages on average are very low).

OP posts:
Cami65 · 06/09/2023 13:27

My mortgage broker was happy to provide a letter saying DIP was in place to support an offer of [agreed price] and then EA didn't know how much was available. Didn't cause any issues

Outnumbered99 · 06/09/2023 13:48

We would provide a DIP to a client to support the offer they have made on the property (if appropriate). Having to provide this is standard, and helps stop time wasters which no one wants to have to deal with.

Even if the agent found out you "could" spend more, "my budget is X" or "I am prepared to spend Y on this property" are all you have to say. Best of luck i hope you get it!

Original poster
EarthSight · 06/09/2023 20:40

Cami65 · 06/09/2023 13:27

My mortgage broker was happy to provide a letter saying DIP was in place to support an offer of [agreed price] and then EA didn't know how much was available. Didn't cause any issues

It looks like the best morgages at the moment are directl with HSBC, and I doubt they would provide a letter like this.

OP posts:
Jenala · 06/09/2023 20:42

Our mortgage broker advised us to ask estate agent to confirm directly with him rather than reveal how much we could borrow. Makes sense and was fine with the estate agent - currently purchasing first home.

hgaj · 06/09/2023 20:54

It's also pretty easy to get a decision in principle. If you're really worried about the estate agent just apply for a new DIP for the offer amount from another provider. So long as you pick a mortgage company who only do a soft search then it won't affect your credit rating.

thaisweetchill · 06/09/2023 21:03

'I have a million pounds in the bank'
'Ok prove it'
'No'
'Ok, I believe you'

Read the conversation and keep reading it until you realise why you have to prove you're able to purchase the property. Why should the estate agent trust your word to enable them to take it off the market and dance to your tune?

Original poster
EarthSight · 06/09/2023 21:51

@thaisweetchill Oh chill out. I understand why they want it to accept an offer. My fear was what they might do with the info if for some reaosn the sale fell through.

Learn to read ffs.

OP posts:
BlueMongoose · 07/09/2023 10:35

KievLoverTwo · 05/09/2023 21:10

I am always wary too.

You can tell the EA to talk to your conveyencer or mortgage broker to confirm you meet affordability criteria if you like. Whether they chose to accept this or not is anyone's guess.

Yep, that's what we did.

stardust777 · 07/09/2023 10:40

I'm also hoping to buy my first home. Previously when making an offer, I gave the details of my mortgage broker and a screenshot of the funds in my account (I moved money about so the EA could only see an amount that would cover the deposit and legal fees). I didn't want the EA seeing additional money.

thaisweetchill · 07/09/2023 12:34

EarthSight · 06/09/2023 21:51

@thaisweetchill Oh chill out. I understand why they want it to accept an offer. My fear was what they might do with the info if for some reaosn the sale fell through.

Learn to read ffs.

What on Earth are they going to do with the amount you need to borrow??

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