Sale Agreed before Mortgage Approval

S

shipibo

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A Chairde,

Am selling a house presently, and agreed a sale on property in mid september. No deposit is paid yet, and after a lot of enquiring was told purchaser is waiting for mortgage approval.

Is this common practice, if not what do you think ..
 
I have gotten used to issuing contracts and not ever expecting to see them ever again.

Either (a) your purchasers are very sensible people who are trying to organise their loan but are finding the banks very reluctant to deal formally or (b) they are naive/dreamers who have no chance whatever of securing finance and cannot yet believe that this is happening.

It is remarkable to have anyone interested in the property at all so be very careful before you shoo them away. BUT at this stage you need to know are they capable of ever closing this deal or not? If not, then they should stop wasting everyones time and fess up. And, if they can close, when exactly will that be? Can they please sign contracts and agree a closing date so that everyone can just move on?

If they can't sign contracts and subsequently complete , you are likely to find a serious dearth of purchasers out there.

mf
 
It is common practice in my experience.

The seller should insist on proof that the prospective purchaser has mortgage approval i.e an approval in principle (AIP) before accepting the offer but with some sellers desperate to sell, this is not always done.

Many estate agents will speak to the mortgage broker for confirmation the buyer has an AIP before allowing the seller to accept the offer.
 
Thanks MF, Norf,


Understand in this market the auctioneer needs to take some risks, was just wondering if this is normal ...
 
When you say no deposit do you mean no contractual deposit or no booking deposit (the one given to the auctioneer) If nothing at all has been paid I would suggest that the buyers are not genuine and you should consider keeping the house on the market until at least some money has been paid while bearing in mind as has been pointed out buyers are lacking in numbers at present.
 
Did,nt know there were 2 deposits to be paid, will check this out and get back.
 
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