Mortgage approval

Zane97

We have approval over the phone there Thursday from our bank manager. We are looking to buy a 4 bed new house that recently came down 70 grand last week.

The manager wants us to go to a main brave to organise life assurance or what ever we need.

We went in to the bank Monday with our p 60's , pay slips etc and it was very quick getting offered it by Bsnk of Ireland

Going to try A.I.B because they say they offer a 92% mortgage.

House is on sale for €160000 . Should we offer less and should we have no problem getting the mortgage through with Bank of Ireland as they have most of our details?

killers1

For the sake of digging out some more paperwork I'd say you should pursue it with AIB as their rates are more competitive at present. not to sure what some of your post meant 'manager wants us to go to a main brave to organise life assurance or whatever we need'?

D3PO

approval over the phone means nothing in this day and age.

Its worthless OP. Until you actually go in with your details and apply and get a confirmed mortgage offer you dont have one.

95% of this approval in principle offers dont convert to mortgage offers these days.

killers1

95% of this approval in principle offers dont convert to mortgage offers these days.[/QUOTE]

Totally inaccurate percentage but agreed that Approval in Principle isn't worth the paper it's written on.. It's merely an indication and the documentation to back up the details given need to be in accordance with the Bank's credit policy before they'll issue a formal approval & loan offer which nowadays needs a valuation on the property you are buying upfront. You don't have a formal commitment from the Bank until they issue a loan offer to your solicitor.

D3PO

killers1 wrote: »

95% of this approval in principle offers dont convert to mortgage offers these days.

Totally inaccurate percentage but agreed that Approval in Principle isn't worth the paper it's written on.. It's merely an indication and the documentation to back up the details given need to be in accordance with the Bank's credit policy before they'll issue a formal approval & loan offer which nowadays needs a valuation on the property you are buying upfront. You don't have a formal commitment from the Bank until they issue a loan offer to your solicitor.[/QUOTE]

It was said as a generalisation and not an exact percentage. Most people would get that. But for the sake of appeasing you the majority do not convert to offers.

Zane97

We had all our details in. They called then two Days later after all of our stuff went to Dublin

Sorry , stupid I phone txt. We had to go in main Branch I ment in Drogheda to organise life assurance. Also today I handed in my details Aib wanted

killers1

Robbie G wrote: »

We had all our details in. They called then two Days later after all of our stuff went to Dublin

Sorry , stupid I phone txt. We had to go in main Branch I ment in Drogheda to organise life assurance. Also today I handed in my details Aib wanted

Hold out for an approval from AIB (cheaper rates) & then talk to a Broker re cheapest life cover etc..

inovo

My gf and I went through this with BOI recently and there were no problems or stumbling blocks. Tried AIB several times and it was nothing but hurdle after hurdle.

Learpholl

inovo wrote: »

My gf and I went through this with BOI recently and there were no problems or stumbling blocks. Tried AIB several times and it was nothing but hurdle after hurdle.

Out of curiosity, what kind of hurdles? I'm in the process of applying with both at the moment but my intention is to go with AIB.

killers1

inovo wrote: »

My gf and I went through this with BOI recently and there were no problems or stumbling blocks. Tried AIB several times and it was nothing but hurdle after hurdle.

Every mortgage application is different & banks will have different requirements in terms of documentation required. Some underwriters will ask questions that another banks underwriters don't even think of. This is not an AIB failing but more dependent on whichever underwriter assesses the application in any bank. The only 'hurdles' will be additional documentation in some form or other to support your application or address a query that arose as a result of documentation submitted.

Zane97

I was told by Aib today that they will know by Next Tuesday / Wednesday. It's so annoying knowing that you have clearance with Boi and not these. I have a deposit on the house too and solicitor is picked

killers1

Robbie G wrote: »

I was told by Aib today that they will know by Next Tuesday / Wednesday. It's so annoying knowing that you have clearance with Boi and not these. I have a deposit on the house too and solicitor is picked

Robbie just hang in there, at this stage you are probably not going to have to sign contracts on the property till the New Year so can afford to wait for response from AIB next week, best of luck!

inovo

Learpholl wrote: »

Out of curiosity, what kind of hurdles? I'm in the process of applying with both at the moment but my intention is to go with AIB.

Build up X amount of money, when that was done the goal posts then moved to a bigger amount. Open an account with us and save x amount with us for 6 months to show you can pay a mortgage and it would speed up the decision process......no it didnt.

In the end AIB turned around to us after 9 month arsing around and said try again in 6 months..

BOI no probs, smooth application process, approval process and draw down of mortgage. I would highly recommend them and no i am not affiliated in any way with any Bank

Supercell

Robbie, I would wait for Aib to be honest if you can. A couple of weeks here or there in terms of the potential lifetime spent in your new home is nothing.

What isn't nothing is the difference in interest rates between AIB and the rest!! AIB will save you 1000's over the lifetime of your mortgage (if they continue to have the lowest rate, and being state owned they have no choice but to continue that way for the foreseeable) and that's worth waiting a few extra weeks unless you are loaded.

killers1

inovo wrote: »

Learpholl wrote: »

Out of curiosity, what kind of hurdles? I'm in the process of applying with both at the moment but my intention is to go with AIB.

Build up X amount of money, when that was done the goal posts then moved to a bigger amount. Open an account with us and save x amount with us for 6 months to show you can pay a mortgage and it would speed up the decision process......no it didnt.

In the end AIB turned around to us after 9 month arsing around and said try again in 6 months..

BOI no probs, smooth application process, approval process and draw down of mortgage. I would highly recommend them and no i am not affiliated in any way with any Bank

Inovo, basically you were declined by AIB and told they'd look at your application again in 6 months if you did a, b & c. When you applied again their credit policy had probably changed and your application still didn't meet the criteria. Boi had a smooth process for you because your application was within their credit policy. Sometimes how smoothly everything goes can boil down to the person you are dealing with in the respective banks. Ultimately I still advise the OP to wait for a decision from AIB as at the end of the day it's all about borrowing the money at the cheapest possible rate...

inovo

killers1 wrote: »

Inovo, basically you were declined by AIB and told they'd look at your application again in 6 months if you did a, b & c. When you applied again their credit policy had probably changed and your application still didn't meet the criteria. Boi had a smooth process for you because your application was within their credit policy. Sometimes how smoothly everything goes can boil down to the person you are dealing with in the respective banks. Ultimately I still advise the OP to wait for a decision from AIB as at the end of the day it's all about borrowing the money at the cheapest possible rate...

Well I would go one better again and apply to both AIB and BOI. Wait for a decision from more than one bank OP. If the first turns you down at least the waiting period for a decision from another bank is eliminated,

Zane97

Aib called today and only offered €100000 . Going with. BOI now

daltonmd

Robbie G wrote: »

Aib called today and only offered €100000 . Going with. BOI now

Just out of interest - did you provide the price and details of the house?

Zane97

Did indeed

daltonmd

Robbie G wrote: »

Did indeed

Well that tells me that the bank think that prices have a bit of a way to fall.

Zane97

Well the house did drop from €230000 to €160000 only 3 weeks ago so I think it's worth going for now

daltonmd

Robbie G wrote: »

Well the house did drop from €230000 to €160000 only 3 weeks ago so I think it's worth going for now

Not saying you shouldn't - it just seems to be a big cushion that AIB are looking for and that would indicate to me that they think more falls are on the way.

Best of luck with it.

Learpholl

Robbie G wrote: »

Aib called today and only offered €100000 . Going with. BOI now

Strange. AIB offered me €35k more than BOI did.