Got Mortgage Approval today

Stacksey

So i got mortgage approval today for €210,000 from BOI(first time buyer), i have no where in mind at the moment but people keep telling me wait til a few months after xmas, i was going to look into getting an apartment but dont know about this anymore because a) who knows who will be living in your apartment block and b) those bloody maintenance fees are a joke

i have done a search for houses in north dublin and the lowest seems to be in an around the €240,000 mark, do ya think people will sell for €210,000, sorry im new to this

gurramok

Whats it worth to you?

Don't rush in, do some research. If you feel they are worth 210k to you, then offer it. They can only accept or reject. 240k is the lowest house price in a safe area in Dublin. For me, they are not even worth 240k, more like 150k.

Mind you, your friends are correct and you are correct on apts.

the_syco

Stacksey wrote: »

i have done a search for houses in north dublin and the lowest seems to be in an around the €240,000 mark, do ya think people will sell for €210,000, sorry im new to this

Aye, seen a few houses in and around Swords for that amount. They'll fall in price, as they have been falling in price for the past while, abeilt slowly. I'd check out teh different estates, how close they are to the shops, etc, and see if they'll accept €200,000?

seamus

One thing to keep in mind is that you got mortgage approval for €210,000, but that doesn't mean you have to or should use that all up.

At this stage in the game, you're looking for a property that you'll hold onto for at least five years, preferably something you'll hold onto for at least ten. A lot changes in ten years - You don't want to buy a 3-bed apartment now and find yourself in ten years time married with two kids (even if you're single now, this is still a distinct possibility) and going crazy because you've no room.

I would advise going for something with 3 bedrooms at a minimum and a back garden. Don't be afraid to take at least 10% off the asking. If the agent tells you that the offer is too low or there's another higher offer on the place, then move on - there are plenty of other places to look at, and if the agent was bluffing, you'll get a phone call. Win-win for you.

There are literally thousands of apartments sitting unsold in Dublin at the moment (Dublin North is awash with them) and it's going to be years before the apartment stock can be sold off. Homes with their own front/back doors and especially those with gardens aren't quite as plentiful and we're entering a period of baby booms meaning that recession or not, the demand for proper homes with more room is going to go up in the next 2 - 10 years.

Oliver1985

I also got approved for 210k last week!!! Its a buyers market ill be throwing in well low offers

heebusjeebus

Play it cool lads. I got approved for a crazy 340,000 but I took my time and finally settled on a place for 226,000. The difference in repayments between 226 and 340 is staggering.

Theboinkmaster

heebusjeebus wrote: »

Play it cool lads. I got approved for a crazy 340,000 but I took my time and finally settled on a place for 226,000. The difference in repayments between 226 and 340 is staggering.

Yes and especially since interest rates will rise over the coming years - they could well be triple or quadrouple what they are now, in say 5 years time

Stacksey

Thanks lads, i realise now that i have approval i can kind of sit back and take a look around and in the mean time keep saving and living at home with the parents makes the saving a little easier,

Theboinkmaster

Stacksey wrote: »

Thanks lads, i realise now that i have approval i can kind of sit back and take a look around and in the mean time keep saving and living at home with the parents makes the saving a little easier,

Good call - remember every month you wait you:

1) save more of a deposit
2) your target property will likely decline in value

che81

Well done on getting your approval. I got mine last week for 220,000 (first time buyer couple with one wage, with EBS), and didn't play it very cool as we had a house in mind for a while and had been looking before we got approval from the bank.

We looked at houses all around Dublin online, and then viewed in Crumlin, Drimnagh, Kimmage and Ballyfermot. Altogether viewed 22 houses (mostly ex-corporation from the 40s and 50s) and they ranged in prices from 160k for 2 bed terraced in need of work to 250k for 3 bed walk in condition.

We ended up buying in a nice part of Ballyfermot down towards the N4 turn off, Inchicore end. Asking price of 210k which we got accepted at 197k. House is in walk in condition with huge garden. I think definitely take your time to look around, as houses are not shifting too readily and you can drive the bargain harder if you know they've been trying to sell for a long time.

I really think this is the time to pick up a house, and not an apartment in my opinion. It's not nice for the developers, but like another poster said, you're going to be living there for a good few years as it's going to be very hard to sell on in the next couple years.

Oliver1985

Just as a matter of interest how long does an approval last for?

heebusjeebus

I think its 6 months but it's dependent on the institution.

seamus

Stacksey wrote: »

Thanks lads, i realise now that i have approval i can kind of sit back and take a look around and in the mean time keep saving and living at home with the parents makes the saving a little easier,

If you don't already know, find out how long the approval lasts for.

The time from acceptance of your offer to drawing down the mortgage is usually 6 - 8 weeks (unless the buyer is eager for a very quick sale in which case it can be done in a couple of weeks*), so bear that in mind. You have to draw down the mortgage (i.e. complete the sale and own the house) within the approval period. The last thing you want is to have contracts signed, ready for drawdown only to discover that your approval has expired and you've to hurridly jump through the hoops all over again.

I'm not trying to rush you or panic you, but if you're intent on buying, you should be on the lookout fairly constantly as opposed to waiting 4 months and then going house-hunting.

* People will tell you stories of completing a sale in less than a week, but these are very special circumstances and definitely not the norm. Factor in a minimum of 6 weeks for the paperwork to be completed

BC

Stacksey wrote: »

i was going to look into getting an apartment but dont know about this anymore because a) who knows who will be living in your apartment block and b) those bloody maintenance fees are a joke

i agree that a house is usually the better option (mainly for space) but bear in mind that you don't know who is living in your housing estate either. At least in an apartment you have some way of tackling issues. Also maintenance fees are usually only a joke in a badly run management company or one that is not fully completed (granted this is often the case). Many housing estates have maintenance fees also so look out for that.

jimoc

also one point to note is, that wherever you are going to buy, go there this week and see how wet it is there, if its underwater or close to it now, stay well clear.

My own personal recommendation would be to buy somewhere at least 50 feet above sea level on the side of a hill

the_syco

jimoc wrote: »

also one point to note is, that wherever you are going to buy, go there this week and see how wet it is there, if its underwater or close to it now, stay well clear.

Yes. I can see LOTS of VERY F**KING cheap houses coming into the market in a year or two, when they dry out...

none

Oliver1985 wrote: »

Just as a matter of interest how long does an approval last for?

Yes, I'm also curious. In mine, there's aomething about 30 days acceptance term and from talking to the Mortgage person I'm dealing with, I was also told I need to make a decision within one month.

none

the_syco wrote: »

Yes. I can see LOTS of VERY F**KING cheap houses coming into the market in a year or two, when they dry out...

That's one of the reasons I prefer apartments

iguana

none wrote: »

That's one of the reasons I prefer apartments

So that you can live Rapunzel style in your very own island tower?

A 2nd storey+ apartment still becomes unlivable if the groundfloor is flooded. Your stuff won't be in danger but if you can't get in or out your apartment is worthless.

seamus

none wrote: »

Yes, I'm also curious. In mine, there's aomething about 30 days acceptance term and from talking to the Mortgage person I'm dealing with, I was also told I need to make a decision within one month.

That's for the approval in principle. It's effectively an offer of a mortgage, which is subject to approval. When you accept the offer, you will then get your full approval (barring anything serious coming to light) and that will be valid for 6 months or so.

icescreamqueen

Stacksey wrote: »

So i got mortgage approval today for €210,000 from BOI(first time buyer), i have no where in mind at the moment but people keep telling me wait til a few months after xmas, i was going to look into getting an apartment but dont know about this anymore because a) who knows who will be living in your apartment block and b) those bloody maintenance fees are a joke

i have done a search for houses in north dublin and the lowest seems to be in an around the €240,000 mark, do ya think people will sell for €210,000, sorry im new to this

Could I be nosy and ask what kind of salary you're on? I'm trying to get a mortgage approval on my own but I need about 250k to buy the house but that would include an 8% deposit. I'm just wondering if I'd get anywhere near that. I'm 23 and earn about 40k.

fletch

FYI - AIB approval in principle last 3 months

Stacksey

icescreamqueen wrote: »

Could I be nosy and ask what kind of salary you're on? I'm trying to get a mortgage approval on my own but I need about 250k to buy the house but that would include an 8% deposit. I'm just wondering if I'd get anywhere near that. I'm 23 and earn about 40k.

I am on 40K and work in public service and i'm 27, your on very good money for your age

Senna

icescreamqueen wrote: »

I need about 250k to buy the house but that would include an 8% deposit.

Maybe its just they way i'm reading that, but you do know that you have to have the 8% deposit in cash already.


As far as i know, and unless things have changed in the last few months which i doubt, all approvals are approval in principle. When you actually decide on a house and apply for the mortgage your details will be submitted to head office again and can be rejected even if your circumstances have not changed.
Approval in principle should be taken as a guide to how much you might be offered, you should then begin the search for a house, but be prepared to have you paperwork scrutinized again.

Also, i hope banks are more realistic with AIP now, a few months back i got AIP for 375k, but realistically i would only be able to pay a mortgage half that size comfortably. If people are getting AIP for 210k and buying houses for 200k, will they be able to make repayments when interest rates are 5-65?

jeepers101

Oliver1985 wrote: »

Just as a matter of interest how long does an approval last for?

Assuming its AIP you've got, then its not set in stone. We had AIP from a couple of banks but when it came to the crunch they wouldn't budge.

icescreamqueen

Senna wrote: »

Maybe its just they way i'm reading that, but you do know that you have to have the 8% deposit in cash already.


As far as i know, and unless things have changed in the last few months which i doubt, all approvals are approval in principle. When you actually decide on a house and apply for the mortgage your details will be submitted to head office again and can be rejected even if your circumstances have not changed.
Approval in principle should be taken as a guide to how much you might be offered, you should then begin the search for a house, but be prepared to have you paperwork scrutinized again.

Also, i hope banks are more realistic with AIP now, a few months back i got AIP for 375k, but realistically i would only be able to pay a mortgage half that size comfortably. If people are getting AIP for 210k and buying houses for 200k, will they be able to make repayments when interest rates are 5-65?

Yeah I understand that you have to have 8% of a cash deposit. I will have that shortly, hopefully. So, realistically I need a mortgage of 230k but I'm not sure if I'll get that. I have a good savings history but they might hold my age against me?

Senna

icescreamqueen wrote: »

Yeah I understand that you have to have 8% of a cash deposit. I will have that shortly, hopefully. So, realistically I need a mortgage of 230k but I'm not sure if I'll get that. I have a good savings history but they might hold my age against me?

Your age wont go against you from the banks point of view. As long as your job is permanent/stable, and you have been in full employment for at least a year, or more. But you're 23 and you want a mortgage on your own?? WHY??

A mortgage is nothing more than a millstone around your neck, people should really only take on a mortgage if there at that stage of life were they need the stability. Renting is the best thing for a 23 yr old, it gives you the option of moving to where better jobs are and then settling down when you know they sort of house you need.

Anyway, you're looking for 230k on an income of 40k, i cant see any bank giving you that, when interest rates go back to a normal level your repayments would be nearly 50% of your income. In a few years time you will thank that bank for not giving you a mortgage now, stay renting, keep saving, enjoy yourself and only buy when you NEED a house.

Firetrap

OP, I'm not being smart/troll here but do you know if the bank took into account the haircut that your public sector earnings are going to take in the coming months?

AARRRGH

Senna wrote: »

A mortgage is nothing more than a millstone around your neck, people should really only take on a mortgage if there at that stage of life were they need the stability. Renting is the best thing for a 23 yr old, it gives you the option of moving to where better jobs are and then settling down when you know they sort of house you need.

I agree completely.

You'd be mad to buy a house at 23 in a country which is going to be ****ed for decades.

Rent, travel, enjoy life. Get a mortgage when you're older and ready to be trapped in full-time employment in Ireland for 25 years.

Stacksey

Firetrap wrote: »

OP, I'm not being smart/troll here but do you know if the bank took into account the haircut that your public sector earnings are going to take in the coming months?

i actually thought about this alright, was quiet suprised to get the mortgage approval so quickley, i'm really in 2 minds now whether to go ahead and start looking for a place to buy, renting is the new buying, at least if i rent and the country gets worse and more and more pay cuts happen i can just pack the bags and jump on a singapore airlines to oz, i am only 27 at the end of the day and single

AARRRGH

Stacksey wrote: »

i actually thought about this alright, was quiet suprised to get the mortgage approval so quickley, i'm really in 2 minds now whether to go ahead and start looking for a place to buy, renting is the new buying, at least if i rent and the country gets worse and more and more pay cuts happen i can just pack the bags and jump on a singapore airlines to oz, i am only 27 at the end of the day and single

Your pay is definitely going to be cut, and the country is definitely going to get worse. Also if you buy now you will definitely be in negative equity immediately.

I would wait if I were you...

iguana

Stacksey wrote: »

i am only 27 at the end of the day and single

If you are single I'd really reconsider buying just yet. You have no idea who you might meet in the future. You might meet a partner from another country and be stuck with your house.

And I think most people, if they are really, really honest, would shy away from a relationship with someone who was in serious negative equity. Especially if the house was not suitable as a family home or was in a not so good area.

icescreamqueen

Senna wrote: »

Your age wont go against you from the banks point of view. As long as your job is permanent/stable, and you have been in full employment for at least a year, or more. But you're 23 and you want a mortgage on your own?? WHY??

A mortgage is nothing more than a millstone around your neck, people should really only take on a mortgage if there at that stage of life were they need the stability. Renting is the best thing for a 23 yr old, it gives you the option of moving to where better jobs are and then settling down when you know they sort of house you need.

Anyway, you're looking for 230k on an income of 40k, i cant see any bank giving you that, when interest rates go back to a normal level your repayments would be nearly 50% of your income. In a few years time you will thank that bank for not giving you a mortgage now, stay renting, keep saving, enjoy yourself and only buy when you NEED a house.

Thanks for the advice (which I've heard before). However, I feel like I shouldn't have to justify wanting to buy a home (more than a house) in an area that I work and live and have family in. Plus, there isn't a snowballs chance that I'll moving anywhere in the next 10 years. Two years ago, I would never have had the option of buying a house in the area I want to buy because they were double the price they are now. At least now, I can actually consider it. Also, not all 23 year olds like doing the same things and I'm not waiting around for someone to come along to buy a house with.

Senna

It's really not even about your age, in a stable market a house purchase doesn't come with all the pitfall that buying now does. In the past if you bought and, for what ever reason, you needed to sell you could. Purchasing now means you wont be able to back away for the foreseeable future. People who bought up-until 2006 weren't aware this would change, but the information is everywhere today, it up to you to make an informed decision.

icescreamqueen wrote: »

Two years ago, I would never have had the option of buying a house in the area I want to buy because they were double the price they are now. At least now, I can actually consider it.

How will you feel in 2 years time when the house has halved in price again? Many will say that there is no way house prices could drop by 75% (most though 50% drops would never happen), but with each passing day, i dont see how its possible for prices not to drop by that or more, but that topic is for another day.

Best of luck with whatever you decide.

Firetrap

The way I see it, house prices are continuing to fall so you've nothing to lose by waiting. It was different when they were rocketing up and up and people felt they had to buy something, anything just to get on the ladder before prices went out of their range. See where that got so many of them

niceirishfella

OP, would you live in Newbridge or the like, Appts there for 110 to 125K .

hinault

Stacksey wrote: »

Thanks lads, i realise now that i have approval i can kind of sit back and take a look around and in the mean time keep saving and living at home with the parents makes the saving a little easier,

I think you would be wise to wait and see how things pan out.

I think you will see more house prices falling in 2010 - sadly there are a lot of people in financial trouble and I would think you will see a lot of people defaulting on their mortgages.

I think the market will continue to implode which is good for prospective buyers like you.

Good to see the banks giving mortgage : hopefully a sign of better times to come.

whizzbang

If you really really want to buy I suggest you use www.IrishPropertyWatch.com to track the houses you are interested in, it even shows you how long they have been on the market and if the price has been brought down at all.

PeakOutput

icescreamqueen wrote: »

Thanks for the advice (which I've heard before). However, I feel like I shouldn't have to justify wanting to buy a home (more than a house) in an area that I work and live and have family in. Plus, there isn't a snowballs chance that I'll moving anywhere in the next 10 years. Two years ago, I would never have had the option of buying a house in the area I want to buy because they were double the price they are now. At least now, I can actually consider it. Also, not all 23 year olds like doing the same things and I'm not waiting around for someone to come along to buy a house with.

of course you dont have to justify it if its what you decide to do its what you decide to do. that dosnt mean you are not been given good advice.

if you have any friends who are economists(good ones) ask them to explain to you why renting is not always wasted money. then figure out weather or not buying in that area in the current climate is wasted money and could you rent there instead and save money.

it sounds like your going to buy no matter what and to me that sounds like a hangover from the we all need to own our homes days(or at least what should be the hangover for those days i imagine that attitude is still fairly prevelant)

Senna

PeakOutput wrote: »

if you have any friends who are economists(good ones)

The only thing more dangerous than an economist is a good economist!;)

Have a read of the www.thepropertypin.com for some good facts, figures and opinions.

icescreamqueen

PeakOutput wrote: »

of course you dont have to justify it if its what you decide to do its what you decide to do. that dosnt mean you are not been given good advice.

if you have any friends who are economists(good ones) ask them to explain to you why renting is not always wasted money. then figure out weather or not buying in that area in the current climate is wasted money and could you rent there instead and save money.

it sounds like your going to buy no matter what and to me that sounds like a hangover from the we all need to own our homes days(or at least what should be the hangover for those days i imagine that attitude is still fairly prevelant)

Well I absolutely hated renting, most rental properties are substandard in Ireland. The only areas that house prices are going to keep going down in, are the areas that have loads of houses but no one now wants to live in. It's the settled, established areas close enough to the city where house prices are going to stay the same or go down slightly, i.e, where I want to buy. I have been watching the property market in that area for the last 6 months and 8 out of the 10 properties I looked at have been sold, which shows it's still a competitive market but in the areas that people actually want to live now.

IRLConor

If you're buying, it's also well worth thinking about where you're going to be working. The ongoing cost of commuting needs to be considered in money and (more importantly) quality of life terms.

Myself and my girlfriend have recently bought an apartment for similar money to what the OP was looking for. We settled at 85% of the asking price. Many places we saw were substandard but there are well built apartments in well managed buildings if you dig hard enough.

I'd steer well clear of borrowing anywhere near what they're willing to lend you. AIB said they'd be willing to lend us up to 500k and I know a) we wouldn't have a hope in hell of repaying that and b) they wouldn't lend it anyway when push came to shove.

oceanclub

icescreamqueen wrote: »

The only areas that house prices are going to keep going down in, are the areas that have loads of houses but no one now wants to live in..

That's not true. Prices have actually gone down more in the established - places like Dublin 4 - precisely because prices went up the most there initially.

Anyone thinking there are safe areas not effected by macro-economics will get a rude awakening.

P.

iguana

icescreamqueen wrote: »

The only areas that house prices are going to keep going down in, are the areas that have loads of houses but no one now wants to live in. It's the settled, established areas close enough to the city where house prices are going to stay the same or go down slightly, i.e, where I want to buy.

That's nonsense. Some of the biggest falls of all have happened in D4 and D6. The whole market is linked, when bot the top and the bottom are falling the middle must too. If someone who had the cash to buy a nice house in Dundrum can now afford to buy a great house in Donnybrook the house in Dundrum will drop in price or it won't sell.

If someone in an apartment in Sandyford wants to trade up to a house in Dundrum and their apartment has dropped in price the house in Dundrum needs to fall too or nobody will by able to buy it.

Wait. You are single and unless you are sure you want to live in this house forever, possibly by yourself reconsider buying. This property will be an albatross.

icescreamqueen

Houses prices have already come down a huge amount but my point is they won't come down much more in certain areas. For example, I'm looking at buying a house in Dublin 12 that I know was valued at 500k during the peak, now similiar houses to it are being sold around the 250k mark in that area. Plus, houses are not sitting, they are selling. If I took out a mortgage of 230k on my own, it would be manageable and I know that I wouldn't get much more off the asking price.

ssornareik

Hi,

I'm just looking for some opinionated advice here and i think this is the best forum to ask.

I really REALLY want to buy a house, there's a lot of benefits owning a house and i just really want a place that I can call home. After talking to my girlfriend about my thoughts she agrees with me that buying a house would be a great idea however, i half feel that she agrees with me because she can see how much I want a house and how happy i'd be.

When i talk to everyone else about it, everyone says I'm mad and that renting is the way to go. (I've been renting for nearly 4 years now)

I do agree that renting is great as it's very flexible (just pack up and go) but if I had a house, I'd be paying the exact same amount of money to my mortgage instead of someone else's and I'd have a house at the end of it all.

By the way, I'm only 24 years old. To which you are probably thinking "you're mad to be thinking of getting onto the unstable property ladder at your age" to which i'd respond "like paying into a pension, the sooner the better"

Now, I've already done a lot of travel and have seen half the world so it appeals less to me than it does to others.

With all that aside, Can someone please form an unbiased opinion and tell me if I am in fact truly mad and that I should park my intentions for a few years or does anyone out there have the same goal of owning a house?

--
Kieran

Dr_Phil

ssornareik wrote: »

I'm just looking for some opinionated advice here

Bad idea, all you get here is whinging about how screwed the country is, and that you have to wait another 18 months as it's certainlly gonna be a point at which the houses will cost 50 euro/each.

ssornareik wrote: »

I really REALLY want to buy a house

If you really want it - go for it. Calculate, consider risks and benefits and if you still think you want to buy a house that's gonna be a home for you and your family in future - do it.

niceirishfella

icescreamqueen wrote: »

Plus, houses are not sitting, they are selling.

wow - so theres no recession?!?!?!:P
It's all been dreamt up by the meja............:pac:

icescreamqueen

niceirishfella wrote: »

wow - so theres no recession?!?!?!:P
It's all been dreamt up by the meja............:pac:

Do you have selective vision?!

icescreamqueen

ssornareik wrote: »

Hi,

I'm just looking for some opinionated advice here and i think this is the best forum to ask.

I really REALLY want to buy a house, there's a lot of benefits owning a house and i just really want a place that I can call home. After talking to my girlfriend about my thoughts she agrees with me that buying a house would be a great idea however, i half feel that she agrees with me because she can see how much I want a house and how happy i'd be.

When i talk to everyone else about it, everyone says I'm mad and that renting is the way to go. (I've been renting for nearly 4 years now)

I do agree that renting is great as it's very flexible (just pack up and go) but if I had a house, I'd be paying the exact same amount of money to my mortgage instead of someone else's and I'd have a house at the end of it all.

By the way, I'm only 24 years old. To which you are probably thinking "you're mad to be thinking of getting onto the unstable property ladder at your age" to which i'd respond "like paying into a pension, the sooner the better"

Now, I've already done a lot of travel and have seen half the world so it appeals less to me than it does to others.

With all that aside, Can someone please form an unbiased opinion and tell me if I am in fact truly mad and that I should park my intentions for a few years or does anyone out there have the same goal of owning a house?

--
Kieran

I'm in the exact same position as you. I want to buy my own home, am sick of renting and I have done the whole travelling thing. The way people go on here is like if you take out a mortgage, your life is over! However, of course you need to ask some serious questions like- am I in a secure job, will I buy on my own, do I have enough of a deposit saved up, do I have a good savings capacity and are prices in the area I want to live going to reduce anymore. However, I think if you want a home and are committed to it, don't let anyone put off too much but think of the serious aspects of it also.

bangersandmash

icescreamqueen wrote: »

Houses prices have already come down a huge amount but my point is they won't come down much more in certain areas.

That's a matter of opinion. People have been saying the same thing about mature established areas for the last 18 months.

Also I'd argue that estate agents & co are overestimating price drops in the same way that last year they were underestimating them. For instance the Irish Times advertorial recently implied that prices are back to 2001 levels. However from the latest ESRI study and my own observations, we're closer to late 2003 / early 2004 levels. Prices would have to drop considerably more to reach 2001 levels.