Buying a house 2012

DavyD_83

Kristinew wrote: »

I did start the process backwards i must admit, a house came on the market locally as the owner passed away, i was not looking to buy a house but asked the EA could i take a look at it.
I phone a mortgage advisor, gave all my details and asked what my chances of getting a mortage and what i could borrow.
I rang AIB on the 12th and filled in my details over the phone and they sent out a mortgage pack.

I placed an offer on the house before i had approval in principle There was two weeks back and forth before my offer was accepted. I filled in the form with the house details and sent it to AIB on the 18th. However they did have most of the details from the day i phoned them. I ran a credit check on myself on the 13th and when it arrived in the post it showed that AIB had requested it on the 12th, the day i phoned them first about applying for a mortgage.

Everything has run smoothly considering i started the process a bit backwards and im praying that it all doesnt fall apart. I hope by early next week that i will have approval in principle and then will need the valuers report to send back to AIB and then hopefully Loan offer!!!!

It all seems a bit crazy and i am under no illusions that there are a hundred things that can go wrong. I told the EA when i paid the booking deposit that i had just applied for approval in principle and that i hadnt received it yet. He told me the deposit was fully refundable and asked had i spoken to a mortgage advisor and what was the outlook. He probably should not have accepted my offer without approval but there is nothing that can be done now and i know now that its not the way to do things and i can see how if i was selling a house what a nightmare this could become. :eek:
still praying it turns out good for both me and the seller!!!!

We went completely backwards on things too.
We placed offer on house and even went sale agreed without having applied for mortgage at all
All worked out ok in the end because the process takes so long end to end. We probably could have closed a couple of weeks earlier if mortgage had been in place to begin with, and I definitely would have been less stressed about posibility of things falling through.
We now own a house for just under 2 months though, so it can work

killers1

DavyD_83 wrote: »

Kristinew wrote: »

I did start the process backwards i must admit, a house came on the market locally as the owner passed away, i was not looking to buy a house but asked the EA could i take a look at it.
I phone a mortgage advisor, gave all my details and asked what my chances of getting a mortage and what i could borrow.
I rang AIB on the 12th and filled in my details over the phone and they sent out a mortgage pack.

I placed an offer on the house before i had approval in principle There was two weeks back and forth before my offer was accepted. I filled in the form with the house details and sent it to AIB on the 18th. However they did have most of the details from the day i phoned them. I ran a credit check on myself on the 13th and when it arrived in the post it showed that AIB had requested it on the 12th, the day i phoned them first about applying for a mortgage.

Everything has run smoothly considering i started the process a bit backwards and im praying that it all doesnt fall apart. I hope by early next week that i will have approval in principle and then will need the valuers report to send back to AIB and then hopefully Loan offer!!!!

It all seems a bit crazy and i am under no illusions that there are a hundred things that can go wrong. I told the EA when i paid the booking deposit that i had just applied for approval in principle and that i hadnt received it yet. He told me the deposit was fully refundable and asked had i spoken to a mortgage advisor and what was the outlook. He probably should not have accepted my offer without approval but there is nothing that can be done now and i know now that its not the way to do things and i can see how if i was selling a house what a nightmare this could become. :eek:
still praying it turns out good for both me and the seller!!!!

We went completely backwards on things too.
We placed offer on house and even went sale agreed without having applied for mortgage at all
All worked out ok in the end because the process takes so long end to end. We probably could have closed a couple of weeks earlier if mortgage had been in place to begin with, and I definitely would have been less stressed about posibility of things falling through.
We now own a house for just under 2 months though, so it can work

A large percentage of people do it backwards in so far as they go sale agreed prior to applying for the mortgage but it's no problem at all doing it that way so long as the mortgage gets approved!

killers1

cassiedoll wrote: »

I post in this forum already but a quick update. Signed my contracts 2 weeks ago, i'll give the vendor another week to 10 days and then i'll start pushing for return of contracts.

i've complied with all the terms of the loan offer and everything has gone smoothly as far as the title deeds and banking end of this but ive a gut feeling the vendor is going to start dragging their heels a bit.

My concern at this point is if it drags for too long, i'll be cutting it fine to avail of the TRS. Afaik you mortgage must be drawn down and used/made a payment prior to the 31/12/12.

Fingers crossed, it's just my nerves

Funds just need to have been issued by the bank to your solicitor by year end to qualify for TRS irrespective of whether you close or 1st payment is made in 2013.

Was there a proposed closing date mentioned in the contracts to work towards? What makes you think they are going to drag their heels? It wouldn't be unusual for contracts to be exchanged anytime right up to closing

cassiedoll

killers1 wrote: »

Funds just need to have been issued by the bank to your solicitor by year end to qualify for TRS irrespective of whether you close or 1st payment is made in 2013.

Was there a proposed closing date mentioned in the contracts to work towards? What makes you think they are going to drag their heels? It wouldn't be unusual for contracts to be exchanged anytime right up to closing

Home Loans taken out in 2013 or later do not qualify for mortgage interest relief. Tax relief is available in respect of interest paid on a qualifying loan, taken out on or after 1 January 2004 and on or before 31 December 2012, which was used to purchase, repair or improve a qualifying residence. Taken out prior to 31 December 2012 means that the loan has been drawn down and used by you on the qualifying residence (e.g. purchase of site plus building costs) before that date.



if you see the post above that is from the revenue website. i don't get the impression that i can draw down my mortgage for example on the 22nd of December, finish up for the xmas break and come back close my purchase on the 5th of January.

the closing date in the contract is this friday so that will come and go. I think they will drag their heels because i got my contracts from them in July and i was told that they only found a property to buy at the end of august. I am now in a chain, as they say, i am buying from somebody who is buying and selling and they are buying from somebody who is buying and selling....and around and around we go. It's not unusual but it gets messy when trying to agree a closing date.

killers1

cassiedoll wrote: »

Home Loans taken out in 2013 or later do not qualify for mortgage interest relief. Tax relief is available in respect of interest paid on a qualifying loan, taken out on or after 1 January 2004 and on or before 31 December 2012, which was used to purchase, repair or improve a qualifying residence. Taken out prior to 31 December 2012 means that the loan has been drawn down and used by you on the qualifying residence (e.g. purchase of site plus building costs) before that date.



if you see the post above that is from the revenue website. i don't get the impression that i can draw down my mortgage for example on the 22nd of December, finish up for the xmas break and come back close my purchase on the 5th of January.

the closing date in the contract is this friday so that will come and go. I think they will drag their heels because i got my contracts from them in July and i was told that they only found a property to buy at the end of august. I am now in a chain, as they say, i am buying from somebody who is buying and selling and they are buying from somebody who is buying and selling....and around and around we go. It's not unusual but it gets messy when trying to agree a closing date.

There is nowhere on the TRS application form where you need to input the closing date and likewise the closing date is not specified to the lender so as long as you have drawdown before year end you will receive TRS. The only 'date specific' question on the TRS application form is the date of first repayment which is in month form i.e. 'Jan 2013' I'm not suggesting people should drawdown their mortgage if they are not ready to close but there will be the odd case where it was due to complete in December but through some delay or other gets put back till after the holidays and applicants will still receive TRS.

Sounds like your purchase might ramble on a bit. To be honest, putting pressure on the vendor to exchange contracts may be pointless as they will only be in a position to do so whenever their own purchase moves forward etc.. You still have the best part of 3 months so you'd be very unlucky if it dragged on longer than that. Fingers crossed!

efb

Could be signing tomorrow- Engineer went well today!!!! So excited!

Felexicon

Done and dusted!!!!!!!!
Got the keys today, and just so everyone knows, it feels great turning the key in the door of your own house.
It only took about 8 weeks from the offer being accepted.

Glenbhoy

cassiedoll wrote: »

What is the position if I take out a loan in 2013 or later?

Home Loans taken out in 2013 or later do not qualify for mortgage interest relief. Tax relief is available in respect of interest paid on a qualifying loan, taken out on or after 1 January 2004 and on or before 31 December 2012, which was used to purchase, repair or improve a qualifying residence. Taken out prior to 31 December 2012 means that the loan has been drawn down and used by you on the qualifying residence (e.g. purchase of site plus building costs) before that date.
September 2012

From Revenue.ie

Buyers should bear in mind that this is the CURRENT position, there is a budget in December and there is plenty of speculation around that this might be extended.

In the event that it is not extended, there is the possibility that house prices will be forced to drop to make allowances for this and it doesn't take much of a drop to wipe out any savings made in interest relief.

What many people forget is that whilst the relief is restricted to 10,000 per person (20,000 per couple), not many people will be able to take advantage of that level of relief, in other words, very few people drawing down mortgages nowadays will be paying €20,000 p.a. interest. For example, if we take the average mortgage as €200,000 over 30yrs at 4.5% interest, the interest paid will be approx. €9000 p.a. for the seven qualifying years (are there still seven, or does it scheduled to stop in 2017 regardless?). The relief available therefore will only be 25% of that or €2,250 in cash terms p.a. over 5 years (further reading, it's scheduled to stop in 2017) that's only €11,250, which equates to a 5% drop in value.

So, whilst it'd be nice to get the relief, it's probably not so attractive that one should be basing a purchase on it or throwing an extra €10K at a house in order to close quickly.

quarryman

Glenbhoy wrote: »

Buyers should bear in mind that this is the CURRENT position, there is a budget in December and there is plenty of speculation around that this might be extended.

In the event that it is not extended, there is the possibility that house prices will be forced to drop to make allowances for this and it doesn't take much of a drop to wipe out any savings made in interest relief.

What many people forget is that whilst the relief is restricted to 10,000 per person (20,000 per couple), not many people will be able to take advantage of that level of relief, in other words, very few people drawing down mortgages nowadays will be paying €20,000 p.a. interest. For example, if we take the average mortgage as €200,000 over 30yrs at 4.5% interest, the interest paid will be approx. €9000 p.a. for the seven qualifying years (are there still seven, or does it scheduled to stop in 2017 regardless?). The relief available therefore will only be 25% of that or €2,250 in cash terms p.a. over 5 years (further reading, it's scheduled to stop in 2017) that's only €11,250, which equates to a 5% drop in value.

So, whilst it'd be nice to get the relief, it's probably not so attractive that one should be basing a purchase on it or throwing an extra €10K at a house in order to close quickly.

This post is spot on.

The relief will very quickly be wiped out by a small price drop in the asking price. People shouldn't get too hung up on making December to avail of the MIR.

killers1

quarryman wrote: »

Glenbhoy wrote: »

Buyers should bear in mind that this is the CURRENT position, there is a budget in December and there is plenty of speculation around that this might be extended.

In the event that it is not extended, there is the possibility that house prices will be forced to drop to make allowances for this and it doesn't take much of a drop to wipe out any savings made in interest relief.

What many people forget is that whilst the relief is restricted to 10,000 per person (20,000 per couple), not many people will be able to take advantage of that level of relief, in other words, very few people drawing down mortgages nowadays will be paying €20,000 p.a. interest. For example, if we take the average mortgage as €200,000 over 30yrs at 4.5% interest, the interest paid will be approx. €9000 p.a. for the seven qualifying years (are there still seven, or does it scheduled to stop in 2017 regardless?). The relief available therefore will only be 25% of that or €2,250 in cash terms p.a. over 5 years (further reading, it's scheduled to stop in 2017) that's only €11,250, which equates to a 5% drop in value.

So, whilst it'd be nice to get the relief, it's probably not so attractive that one should be basing a purchase on it or throwing an extra €10K at a house in order to close quickly.

This post is spot on.

The relief will very quickly be wiped out by a small price drop in the asking price. People shouldn't get too hung up on making December to avail of the MIR.

+1 to this. TRS shouldn't be the sole motivating factor to buy a house this year but anyone who has gone sale agreed should be doing their upmost to close in time to avail of it in case it's not extended in the budget.

Glenbhoy

killers1 wrote: »

+1 to this. TRS shouldn't be the sole motivating factor to buy a house this year but anyone who has gone sale agreed should be doing their upmost to close in time to avail of it in case it's not extended in the budget.

Yeah, I'd agree 100% with that, just wanted to remind people that it's not worth throwing extra money at a property in order to hurry the process along.

King Lobster

Hey Guys

I am currently looking to buy a house in South Dublin (D6W/D12/D16).

I have got Approval In Principle and am viewing a number of houses. At this stage, I would like to find a solicitor and surveyor which I will use once I have made an offer.

Any recommendations on a suitable solicitor and/or surveyor in South Dublin? (PM me)

I have heard stories and my bank manager said that some solicitors can be very slow in dealing with you. So promptness as well as price a price is important, I guess?

Any assistance is greatly appreciated.

orlaanne

dublin8681 wrote: »

Hey, We got our valuer out on 20th and confirmed with AIB yest that they received it.... did they tell you estimate of how long to hear back from them after they review the valuation ?

Just got confirmation from the broker today that our loan offer has issued. So that was 5 working days total. Signing next week if all goes to plan!

thehamo

Hi folks, I was just wondering if anyone could shed some light on this situation. Basically we were told that we could get a mortgage of 200,000 or 90% which ever was cheaper. We have seen a house and used it as the address to apply for the mortgage. The house needs to be done up so had a bit of money left over to do the works. However, the bank rang and said the underwriter says that the property would only qulaify for 83% of a mortgage, regardless of how much we are going to pay for it. This was never communicated to us, and leaves us in a position now that we can buy the house, but cant afford to do it up. Its the first time ive ever heard anyone saying this about an 83% mortgage. cant quite get my head around it. Its with BOI, do we have any recourse, or should we just look else where? Do other banks work off this policy as well?

Many thanks.
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killers1

thehamo wrote: »

Hi folks, I was just wondering if anyone could shed some light on this situation. Basically we were told that we could get a mortgage of 200,000 or 90% which ever was cheaper. We have seen a house and used it as the address to apply for the mortgage. The house needs to be done up so had a bit of money left over to do the works. However, the bank rang and said the underwriter says that the property would only qulaify for 83% of a mortgage, regardless of how much we are going to pay for it. This was never communicated to us, and leaves us in a position now that we can buy the house, but cant afford to do it up. Its the first time ive ever heard anyone saying this about an 83% mortgage. cant quite get my head around it. Its with BOI, do we have any recourse, or should we just look else where? Do other banks work off this policy as well?

Many thanks.
thehamo is online now Report Post

The bank have agreed to lend you €200k or up to 90% of the purchase price, whichever is the lower based on your buying a turnkey property. Has a valuation report been sent to the bank for this property? If so, has the Valuer indicated essential repairs needed to be carried out to the property and put a cost of these repairs? or has a strucural survey been done and sent to the bank? It would be unusual for them to make assumptions regarding the costs of works without either of those two reports. The bank then 'hold back' this amount pending completion of the works and release a further stage drawdown to pay for the works once they have been completed. It's not that the bank have an '83% ltv' policy is a figure relating to the cost of making this property suitable security for the mortgage.

thehamo

killers1 wrote: »

The bank have agreed to lend you €200k or up to 90% of the purchase price, whichever is the lower based on your buying a turnkey property. Has a valuation report been sent to the bank for this property? If so, has the Valuer indicated essential repairs needed to be carried out to the property and put a cost of these repairs? or has a strucural survey been done and sent to the bank? It would be unusual for them to make assumptions regarding the costs of works without either of those two reports. The bank then 'hold back' this amount pending completion of the works and release a further stage drawdown to pay for the works once they have been completed. It's not that the bank have an '83% ltv' policy is a figure relating to the cost of making this property suitable security for the mortgage.

AS far as I know there have been no valuers reports done on the property, definitely not on our behalf. I had a builder out with me ( I know not a valuer but) and he said its all just internal modernisation more so than any structural problems. WE literally got a phone call from the bank on Friday telling us that the underwriter has been on and said that the house would only qualify for 83% mortgage of the asking price, but at no stage called out to the house or did a physical survey. We are literlly just at the stage of Mortgage approval "in principal" and used this house as our property to get the mortgage. However, no offers have been accepted and we have not got a loan pack sent to solicitors or anything. Is it possible for us to get our own surveyors report to try qualify for a higher percentage of the mortgage?

killers1

thehamo wrote: »

killers1 wrote: »

The bank have agreed to lend you €200k or up to 90% of the purchase price, whichever is the lower based on your buying a turnkey property. Has a valuation report been sent to the bank for this property? If so, has the Valuer indicated essential repairs needed to be carried out to the property and put a cost of these repairs? or has a strucural survey been done and sent to the bank? It would be unusual for them to make assumptions regarding the costs of works without either of those two reports. The bank then 'hold back' this amount pending completion of the works and release a further stage drawdown to pay for the works once they have been completed. It's not that the bank have an '83% ltv' policy is a figure relating to the cost of making this property suitable security for the mortgage.

AS far as I know there have been no valuers reports done on the property, definitely not on our behalf. I had a builder out with me ( I know not a valuer but) and he said its all just internal modernisation more so than any structural problems. WE literally got a phone call from the bank on Friday telling us that the underwriter has been on and said that the house would only qualify for 83% mortgage of the asking price, but at no stage called out to the house or did a physical survey. We are literlly just at the stage of Mortgage approval "in principal" and used this house as our property to get the mortgage. However, no offers have been accepted and we have not got a loan pack sent to solicitors or anything. Is it possible for us to get our own surveyors report to try qualify for a higher percentage of the mortgage?

Does the online ad for the property say that works are needed to be done to the property? The underwriter has obviously looked it up and decided that the house needs work to make it marketable security. You need to get a valuation report done, a structural survey and a builders estimate for the works to be completed I.e the essential repairs noted by the Valuer and or structural surveyor. The bank will look for both these reports and generally hold back the cost of the repairs until the work is done. In reality this works as follows; Valuer values property in its current condition and gives a current valuation (generally the purchase price) and you discuss with the Valuer the proposed works and they give a value on completion. The bank release whatever amount they agree as a percentage of the purchase price with a further commitment to lend the remaining funds on completion of the works. You then use your own money to buy the house. You complete the proposed works and the Valuer visits the property again to confirm the proposed works have been completed and the bank then release the next stage to pay for the works.

thehamo

killers1 wrote: »

thehamo wrote: »

killers1 wrote: »

The bank have agreed to lend you €200k or up to 90% of the purchase price, whichever is the lower based on your buying a turnkey property. Has a valuation report been sent to the bank for this property? If so, has the Valuer indicated essential repairs needed to be carried out to the property and put a cost of these repairs? or has a strucural survey been done and sent to the bank? It would be unusual for them to make assumptions regarding the costs of works without either of those two reports. The bank then 'hold back' this amount pending completion of the works and release a further stage drawdown to pay for the works once they have been completed. It's not that the bank have an '83% ltv' policy is a figure relating to the cost of making this property suitable security for the mortgage.

AS far as I know there have been no valuers reports done on the property, definitely not on our behalf. I had a builder out with me ( I know not a valuer but) and he said its all just internal modernisation more so than any structural problems. WE literally got a phone call from the bank on Friday telling us that the underwriter has been on and said that the house would only qualify for 83% mortgage of the asking price, but at no stage called out to the house or did a physical survey. We are literlly just at the stage of Mortgage approval "in principal" and used this house as our property to get the mortgage. However, no offers have been accepted and we have not got a loan pack sent to solicitors or anything. Is it possible for us to get our own surveyors report to try qualify for a higher percentage of the mortgage?

Does the online ad for the property say that works are needed to be done to the property? The underwriter has obviously looked it up and decided that the house needs work to make it marketable security. You need to get a valuation report done, a structural survey and a builders estimate for the works to be completed I.e the essential repairs noted by the Valuer and or structural surveyor. The bank will look for both these reports and generally hold back the cost of the repairs until the work is done. In reality this works as follows; Valuer values property in its current condition and gives a current valuation (generally the purchase price) and you discuss with the Valuer the proposed works and they give a value on completion. The bank release whatever amount they agree as a percentage of the purchase price with a further commitment to lend the remaining funds on completion of the works. You then use your own money to buy the house. You complete the proposed works and the Valuer visits the property again to confirm the proposed works have been completed and the bank then release the next stage to pay for the works.

Thanks for your replies. Tbh looking online you would not think much needs to be done at all to the property. The advert doesn't mention that it needs modernisation or works to be done. I don't really know where they came up with the figure for the 83%. I'm going to go into the bank tomorrow and see what they say about it.

BornToKill

Property Price Register launched earlier today:

http://www.propertypriceregister.ie/website/npsra/ppr-home-en.html

kingQuez

I've seen a few places listed on the alsop auctions that look interesting, and at other auctions too (not sure exactly whos behind them - on the advert it just lists a time/place). Is it possible to purchase a property that's up for auction with a mortgage? If so, anyone have any details about what the process looks like re: viewing/having structural survey done/bank valuation of the property etc?

Based on some of the reserves, and the prices property has gone at in previous auctions, it looks like there is the chance of getting something reasonably priced if you're in a position to do it on the day. Maybe im mistaken thoguh..

dublin8681

This website is good along with:

google maps to determine details of a house

websites like collaspo and irishpropertywatch - you can see what the asking price of the houses were compared to sale prices

BornToKill wrote: »

Property Price Register launched earlier today:

http://www.propertypriceregister.ie/website/npsra/ppr-home-en.html

Thanos

BornToKill wrote: »

Property Price Register launched earlier today:

http://www.propertypriceregister.ie/website/npsra/ppr-home-en.html

Well this is very interesting.

I looked up a house that we were bidding on, asking was just under 350k.
There were a few people bidding on it (so we were told) our last offer was for 337500. I now look at the web site and see it sold for 330000?????

How can that be right, we were told it went for close to the asking price by the estate agent........................

Am I missing something?

Roxee

Thanos - perhaps the structural survey threw up issues which made the buyer force the price down.

I reduced my accepted offer after survey revealed kitchen extension was in worse nick than I thought. Got a decent amount off.

So perhaps there's nothing more sinister at work than that?

Thanos

Roxee wrote: »

Thanos - perhaps the structural survey threw up issues which made the buyer force the price down.

I reduced my accepted offer after survey revealed kitchen extension was in worse nick than I thought. Got a decent amount off.

So perhaps there's nothing more sinister at work than that?

Maybe, but if the price was dropped below my offer, should I not have been asked or informed and had the chance to offer my amount?

I would have thought so..............

imfml

Roxee wrote: »

Thanos - perhaps the structural survey threw up issues which made the buyer force the price down.

I reduced my accepted offer after survey revealed kitchen extension was in worse nick than I thought. Got a decent amount off.

So perhaps there's nothing more sinister at work than that?

As someone who has been outbid on property more than once recently, I would be severely pissed off if I heard of this happening.

DavyD_83

BornToKill wrote: »

Property Price Register launched earlier today:

http://www.propertypriceregister.ie/website/npsra/ppr-home-en.html

Useful site alright.
Nice to see we paid 10-130K less than other people in the estate

Ours needed more work than any of them, but only 30K worth to get it up to same condition as houses that sold for 80K more. Makes me feel even better about our purchase!

folan

just a quick question, but what exactly can i expect the structural engineer to do?

for example, i already know there is an issue with the build on one of the outside doors, but its with the door itself afaik. can i expect that type of thing to turn up?

or a leak that we hadnt noticed before?

or if the attic is properly insulated?

just wondering if its worth it, since we know the house is pretty well built.

orlaanne

At what point should I expect to get a list of everything the current owners are leaving in the house? Should that be before or after contracts are signed? I met the vendors in person once and they told me they are leaving everything that is screwed down including a few bits of furniture they said I could have but it would be nice to get this in writing.

Lenny

HI folks, going to be visiting 2 houses tomorrow.
first time viewing, how long should it be? should we be checking a lot of stuff like on the aib mortgage site says(check the windows etc.)
Should we make an offer there, a reduced offer at first of course, how much would be a reasonable ammount to offer off?
or do we call them in the morning with an offer, i feel it'd be easier for them reject an offer.
I assume all deposits are refundable, how much should we give? if we give a deposit does that secure it for us, or will the estate agent still show people & let them make an offer for it? if they accept our reduced offer(say for example 10k) and give a deposit, would some people try get it a bit lower(I know if we got it accessed and if their was structure damage there would be a reduction)

efb

Contracts signed. Drop them into Vendor sols tomorrow. Not long now, fingers crossed.