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Offer accepted, but still awaiting mortgage approval

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  • 28-07-2015 6:24pm
    #1
    lobber
    Registered Users Posts: 163 ✭✭


    The background is we had been looking at a new development coming to the market later in the year so had not submitted an application as yet to allow ourselves time to get more of a deposit. A house came on the market last week we were interested in and things have moved much quicker than we even thought and the owner has accepted our offer price. Thing is we will only be submitting the full mortgage approval tomorrow morning and even if everything is good on that we will be a month before we have it across the line.

    We at no point gave the estate agent the impression we had mortgage approval, to the point that I reiterated that we had only been given approval in principal on a sum and we would likely be talking to a broker or a few different banks.

    Has anyone else been in this situation and how did it play out? I would hate for this to fall through at such an early stage!


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    #2
    ted1
    Registered Users Posts: 23,321 ✭✭✭✭ted1


    lobber wrote: »
    The background is we had been looking at a new development coming to the market later in the year so had not submitted an application as yet to allow ourselves time to get more of a deposit. A house came on the market last week we were interested in and things have moved much quicker than we even thought and the owner has accepted our offer price. Thing is we will only be submitting the full mortgage approval tomorrow morning and even if everything is good on that we will be a month before we have it across the line.

    We at no point gave the estate agent the impression we had mortgage approval, to the point that I reiterated that we had only been given approval in principal on a sum and we would likely be talking to a broker or a few different banks.

    Has anyone else been in this situation and how did it play out? I would hate for this to fall through at such an early stage!

    Putting in an offer would imply you have the money either with Cash or mortgage ready to go.
    You are wasting their time


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    #3
    Supercell
    Registered Users Posts: 15,335 ✭✭✭✭Supercell


    You shouldn't have been bidding. I hope you didn't cause a decent couple that were approved out of getting a home. <MOD SNIP>
    https://www.loughlinstown.ie

    Have a weather station?, why not join the Ireland Weather Network - http://irelandweather.eu/



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    #4
    enfant terrible
    Registered Users Posts: 4,560 ✭✭✭enfant terrible


    lobber wrote: »
    The background is we had been looking at a new development coming to the market later in the year so had not submitted an application as yet to allow ourselves time to get more of a deposit. A house came on the market last week we were interested in and things have moved much quicker than we even thought and the owner has accepted our offer price. Thing is we will only be submitting the full mortgage approval tomorrow morning and even if everything is good on that we will be a month before we have it across the line.

    We at no point gave the estate agent the impression we had mortgage approval, to the point that I reiterated that we had only been given approval in principal on a sum and we would likely be talking to a broker or a few different banks.

    Has anyone else been in this situation and how did it play out? I would hate for this to fall through at such an early stage!

    My full approval took less than a week when I had everything ready(payslips, p60, savings record, salary cert etc)


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    #5
    gaius c
    Registered Users Posts: 3,528 ✭✭✭gaius c


    lobber wrote: »
    The background is we had been looking at a new development coming to the market later in the year so had not submitted an application as yet to allow ourselves time to get more of a deposit. A house came on the market last week we were interested in and things have moved much quicker than we even thought and the owner has accepted our offer price. Thing is we will only be submitting the full mortgage approval tomorrow morning and even if everything is good on that we will be a month before we have it across the line.

    We at no point gave the estate agent the impression we had mortgage approval, to the point that I reiterated that we had only been given approval in principal on a sum and we would likely be talking to a broker or a few different banks.

    Has anyone else been in this situation and how did it play out? I would hate for this to fall through at such an early stage!

    Nice one. So when your bid falls through for lack of finance or because you don't get as much as you assumed, you'll have forced up the price for other bidders who did their prep work.
    <MOD SNIP>


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    #6
    athtrasna
    Closed Accounts Posts: 13,420 ✭✭✭✭athtrasna


    Mod note :

    As ever the A&P charter applies here. Particularly the sections about attacking the post and not the poster, and also the part about not making work for the mods. Thanks


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    #7
    sapper
    Registered Users Posts: 421 ✭✭sapper


    In fairness to the OP he could have thrown in a low ball offer and the seller took it due to absence of any other bids.

    You should be fine - most of the time the solicitors take ages to get to a point where you can sign a contract, although depending on your situation it can take months to get a loan approval especially over the summer, that said things have slowed down lately.

    You only need to have the loan offer at the point you sign the contract. If you sign without a loan offer you can cause a lot of trouble. At that stage you can delay things by not signing but it depends on how much of a hurry the vendor is.

    I would definitely go through a broker as they will be able to tell you pretty quickly if your application has a good chance and can help push it through

    When I sold my house this year I insisted that the buyer produce proof of finance - the seller is taking a risk accepting your bid (not your problem!)


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    #8
    davo10
    Closed Accounts Posts: 6,926 ✭✭✭davo10


    For those who ask, why do Sellers prefer cash buyers, or why do sellers accept lower bids from cash buyers? this is the reason why.

    Op, there are fairly strict criteria now for applying for mortgages, the 20% deposit and the multiple of your income that the bank will lend. It is easy to work out how much the bank will lend you so you should apply for mortgage approval before bidding. As others have said, the seller may be willing to wait (unlikely) that is the best case scenario, worst case is that the seller will put property back on the market and you have increased the starting price for others. You can't bid with money you don't have.


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    #9
    howyegettinon1
    Registered Users Posts: 318 ✭✭howyegettinon1


    If the mortgage is only approved in principal you should be making the offer "subject to loan approval"

    I am in the same boat now and wouldn't want to waste sellers time by making offers with money I don't yet or may not have.


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    #10
    Sun in Capri
    Registered Users Posts: 211 ✭✭Sun in Capri


    OP my estate agent asked me for proof from my bank that I have the funds to buy the property, including mortgage amount and deposit. They will not go sale agreed until they have this information and the booking deposit.


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