Buying a house 2012

MOVER2012

killers1 wrote: »

It really depends on how our combined income of €100k is broken down? Is it €50k each? If you are looking to buy a property on the other side of the country to where you work banks will want to know the rationale behind it, whether it's a commutable distance and may look for some confirmation from your employer that you do have the option to work from home a few days a week....Also, there is a world of difference between a joint mortgage application with 2 incomes versus a sole income, 3 person family application...

Thanks for your reply Killers.
Yes our salaries work out about €50K each.
We'd be thinking of buying around the Athenry/Loughrea area so the commute wouldn't be too bad, if I could work from home half the week.
It also wouldn't be a problem getting a letter from work as I'm pretty sure they don't want to lose me!!:D

So do you think the banks would automatically put us into the bracket of a sole income, 3 person family, even though my wife would be getting full pay while on maternity leave for the best part of 8 months?
Also the banks don't know that my wife isn't going to return to work after maternity leave. (She work's in West Dublin so her commute would be less than mine)
Would they just assume she isn't?

mari2222

Your wife will not be eligible for maternity pay unless she returns - even though she could return and then give notice - perhaps this is what you plan. As far as employers and bank are concerned, she is returning to work.

MOVER2012

mari2222 wrote: »

Your wife will not be eligible for maternity pay unless she returns - even though she could return and then give notice - perhaps this is what you plan. As far as employers and bank are concerned, she is returning to work.

Thanks for that mari,
Yes our plan is for her to give notice when she is due to return.
So you don't think we'll have any problem getting a mortgage.
That's great.

killers1

MOVER2012 wrote: »

Thanks for your reply Killers.
Yes our salaries work out about €50K each.
We'd be thinking of buying around the Athenry/Loughrea area so the commute wouldn't be too bad, if I could work from home half the week.
It also wouldn't be a problem getting a letter from work as I'm pretty sure they don't want to lose me!!:D

So do you think the banks would automatically put us into the bracket of a sole income, 3 person family, even though my wife would be getting full pay while on maternity leave for the best part of 8 months?
Also the banks don't know that my wife isn't going to return to work after maternity leave. (She work's in West Dublin so her commute would be less than mine)
Would they just assume she isn't?

If you tell the bank that your wife is going to be looking for a new job after baby is born they won't factor her current income into the equation. A €50k sole income will be sufficient to gain approval for €225k for a 3 person family on some banks calculators but not others. Also, any repayment capacity that you can currently prove will be based on 2 incomes and the bank's may take the view that you haven't proven how you would cope on 1 income (50% of current level) and have an extra mouth to feed. You're in a strong position now with €100k combined incomes and no kids V 1 income, 50% of current levels and the expense of a child. If you take the approach that you both will commute to work in Dublin the bank will make a decision based on how reasonable/feasible that is for 2 parents of a small child to commute 3 hrs per day to work...

nemo32

Hi All,

We have an appointment with the solicitor on Monday to sign the letter of offer and contracts and he mentioned bringing a 10% deposit but we are approved for 92% and we have paid 5k to the EA already. Anyone know what he means by 10%?

Thanks

blueturnip

Hi All,

Another question from me!

How do you put an offer on a house? Do you just ring the estate agent? Or do you have to write a letter etc?

Thanks!

killers1

nemo32 wrote: »

Hi All,

We have an appointment with the solicitor on Monday to sign the letter of offer and contracts and he mentioned bringing a 10% deposit but we are approved for 92% and we have paid 5k to the EA already. Anyone know what he means by 10%?

Thanks

Ring your solicitor tomorrow and tell them that you are getting a 92% mortgage. Ask them to check with the vendors solicitor whether they will accept an 8% contract deposit instead of 10%. In 999 out of 1000 cases this won't be a problem. You then bring a cheque for 8% of the purchase price less the €5k booking deposit you've paid already payable to the vendors solicitor when you go in to sign on Monday.

killers1

blueturnip wrote: »

Hi All,

Another question from me!

How do you put an offer on a house? Do you just ring the estate agent? Or do you have to write a letter etc?

Thanks!

You just ring the estate agent... Best of luck!:)

shangri la

I am in the process of getting the MIP. You need ALL the bits and pieces! I think I have printed out close to a full tree trying to get it together

I have:
Salary Certs
Payslips
CC Statements
Savings Accounts Statments
Proof of EU Citizenship
Proof of Rental payment

No bank statements etc as we are going with AIB where all our current accounts etc are.

And I am sure I am missing something...

What else is required to get a MIP?

How far backdated do the statements need to be?

In your initial list you mentioned statements and separately mentioned bank statements. What statements are you referring to?

Do I have to give statements from every bank/CU and credit card account I have?

Do I have to list every share and investment I own?

shangri la

Verte11 wrote: »

Heya. It was highlighted on Valuation not structural survey but I had to show the bank both as house over 100 years old.

i would have thought an asbestos roof should be listed on a structural survey?

shangri la

killers1 wrote: »

Thanks, I am indeed. People often debate should they go directly to the Bank's or use a broker... I'd like to think that I've answered that question. It's better to have someone fighting your corner who knows the process inside out when it comes to negotiating with the banks.

What exactly does a mortgage broker do when someone walks into your office and says they want a mortgage?

Do you look at lending institutions whose headquarters would be outside the ROI?

In the majority of cases where the purchase goes smoothly what would be a typical brokers fees?

In the majority of cases will a broker just make a purchasers life easier dealing with the banks/surveyors or can they regularly show a saving to the purchaser?

nemo32

killers1 wrote: »

Ring your solicitor tomorrow and tell them that you are getting a 92% mortgage. Ask them to check with the vendors solicitor whether they will accept an 8% contract deposit instead of 10%. In 999 out of 1000 cases this won't be a problem. You then bring a cheque for 8% of the purchase price less the €5k booking deposit you've paid already payable to the vendors solicitor when you go in to sign on Monday.

Thanks Killers,

So it's the vendors solicitor that look for the 10% that makes sense cause he did say there shouldn't be a problem with accpeting 8% so wasnt sure what he meant. All I kept thinking was who is going to take my extra 2%... lol

killers1

shangri la wrote: »

What exactly does a mortgage broker do when someone walks into your office and says they want a mortgage?

Do you look at lending institutions whose headquarters would be outside the ROI?

In the majority of cases where the purchase goes smoothly what would be a typical brokers fees?

In the majority of cases will a broker just make a purchasers life easier dealing with the banks/surveyors or can they regularly show a saving to the purchaser?

A broker should be able to tell you after a 10 minute discussion about what you are looking to do and your financial circumstances what your chances of approval are. They'll be able to advise as to which banks will offer the most finance, which offer the cheapest rates etc. You'll then get a list of documentation needed to put the application together to submit to the lenders. The broker will be able to see from your details any areas in your finances that may cause concern to an Underwriter and present your application to the lenders in it's best light to enhance your chances of approval.

A broker can deal with any lender they hold an agency from. Some brokers charge anything from €0 to €1,000. There is no difference in a rate offered by a bank either directly to a client or via a broker, the banks advertised rates are the rates on offer. The broker can offer a real saving in terms of the insurance products V the banks offerings. The brokers job is to obtain approval for the amount needed at the cheapest possible rate & make life easier for the borrower in any way possible...

killers1

nemo32 wrote: »

Thanks Killers,

So it's the vendors solicitor that look for the 10% that makes sense cause he did say there shouldn't be a problem with accpeting 8% so wasnt sure what he meant. All I kept thinking was who is going to take my extra 2%... lol

lol! Don't worry, they always accept the 8% deposit where you are borrowing 92%. If for any reason they didn't, basically you would pay 10% on signing the contracts and then when the mortgage issues (for 92%), the remaining 90% is paid over to complete the purchase and you get your 2% back from the mortgage monies...

shangri la

@killers1

Would you recommend asking a broker for a list of lending institutions which they have an agency with to get a better range of mortgage options before hiring them?

killers1

shangri la wrote: »

@killers1

Would you recommend asking a broker for a list of lending institutions which they have an agency with to get a better range of mortgage options before hiring them?

Absolutely! & insurance companies!

blueturnip

shangri la wrote: »

What else is required to get a MIP?

How far backdated do the statements need to be?

In your initial list you mentioned statements and separately mentioned bank statements. What statements are you referring to?

Do I have to give statements from every bank/CU and credit card account I have?

Do I have to list every share and investment I own?

For anything outside my bank I needed 6 months. So for the savings account and our joint credit card it was 6 months.

I never gave them a statement from my CU, I have feck all in there!

I would imagine they would want all your CC statements but someone may correct me.

For the statements I meant, Credit cards ones and savings accounts as these are not with my normal bank (i.e. where my current account is). I also have savings and CC accounts with my bank and I didn't need to provide these.

Flancrest

HI
Myself ad the other half are buying this year(FTB)
We have nearly everything in place and are meeting with a mortgage adviser on Tuesday.
Just wondering how long it usually takes to get AIP after getting info to adviser.

killers1

Flancrest wrote: »

HI
Myself ad the other half are buying this year(FTB)
We have nearly everything in place and are meeting with a mortgage adviser on Tuesday.
Just wondering how long it usually takes to get AIP after getting info to adviser.

Depends on the bank but usually around 10 working days or so...

Felexicon

Hi

We have our deposit saved for a mortgage.

Just wondering do we have to have the money in place for additional fees (solicitor,stamp duty etc.) before applying for AIP.

Also what is the current situation for stamp duty for FTB.


Also this is a really helpful thread thanks everyone for some solid advice.

cork_south

Felexicon wrote: »

Hi

We have our deposit saved for a mortgage.

Just wondering do we have to have the money in place for additional fees (solicitor,stamp duty etc.) before applying for AIP.

Also what is the current situation for stamp duty for FTB.


Also this is a really helpful thread thanks everyone for some solid advice.

http://www.propertyfile.net/stampduty.htm

Felexicon

cork_south wrote: »

http://www.propertyfile.net/stampduty.htm

Cheers man!!!!!!

Unfortunately web blocker in work won't allow me to view this.
I'll check it out later

Yeboah

Felexicon wrote: »

Hi

We have our deposit saved for a mortgage.

Just wondering do we have to have the money in place for additional fees (solicitor,stamp duty etc.) before applying for AIP.

Also what is the current situation for stamp duty for FTB.


Also this is a really helpful thread thanks everyone for some solid advice.

Yeah this is a really helpful thread alright, Killers1 deserves a medal to be fair. Stamp duty for first time buyers is 1% of the price of the property. As far as I am aware they will look for extra funds on top of the deposit to cover legal fees and even furnishing of the property. I had to scrape and borrow the bones of 10 extra grand together to get my approval which was hard. Killers1 is the one to ask though. Still awaiting on title to be sorted on my property...getting a bit fed up of waiting at this stage but just hope it all works out in end

killers1

Yeboah wrote: »

Yeah this is a really helpful thread alright, Killers1 deserves a medal to be fair. Stamp duty for first time buyers is 1% of the price of the property. As far as I am aware they will look for extra funds on top of the deposit to cover legal fees and even furnishing of the property. I had to scrape and borrow the bones of 10 extra grand together to get my approval which was hard. Killers1 is the one to ask though. Still awaiting on title to be sorted on my property...getting a bit fed up of waiting at this stage but just hope it all works out in end

Thanks Yeboah!:)

killers1

Felexicon wrote: »

Hi

We have our deposit saved for a mortgage.

Just wondering do we have to have the money in place for additional fees (solicitor,stamp duty etc.) before applying for AIP.

Also what is the current situation for stamp duty for FTB.


Also this is a really helpful thread thanks everyone for some solid advice.

You don't necessarily have to have the additional funds in place at AIP stage but need to cover off where they are coming from. If you are just looking for a figure you qualify for based on your income and proven repayment capacity the bank will be able to give you an amount that they would be happy to lend to you. You can always say that a parental gift is available to cover stamp duty (which as Yeboah said is 1% of the purchase price) and then by the time you find a property and have an offer accepted if you have the additional money saved then you tell the bank you no longer need the gift as you have the funds required. Nothing to stop you ploughing ahead to get your AIP at this stage...

Felexicon

killers1 wrote: »

You don't necessarily have to have the additional funds in place at AIP stage but need to cover off where they are coming from. If you are just looking for a figure you qualify for based on your income and proven repayment capacity the bank will be able to give you an amount that they would be happy to lend to you. You can always say that a parental gift is available to cover stamp duty (which as Yeboah said is 1% of the purchase price) and then by the time you find a property and have an offer accepted if you have the additional money saved then you tell the bank you no longer need the gift as you have the funds required. Nothing to stop you ploughing ahead to get your AIP at this stage...

Thanks Killers1.

leahyl

Just want to say thanks to Killers1:) I had a thread up a few months ago about whether I would get a mortgage or not and if so how much - Killers1 told me I'd get 135k. My dad went into BOI today just to enquire for me and they said I'd qualify for....135k:) They obviously need to talk to me in person though!

I think if I find the right place then I'm gonna take the plunge this year!

killers1

leahyl wrote: »

Just want to say thanks to Killers1:) I had a thread up a few months ago about whether I would get a mortgage or not and if so how much - Killers1 told me I'd get 135k. My dad went into BOI today just to enquire for me and they said I'd qualify for....135k:) They obviously need to talk to me in person though!

I think if I find the right place then I'm gonna take the plunge this year!

Hi Leahyl,
You're very welcome, I'm glad the figures I gave you were accurate! Don't put all your eggs in one basket though as there are cheaper mortgage rates available out there at the minute... Thanks for your comment, much appreciated!

leahyl

killers1 wrote: »

Hi Leahyl,
You're very welcome, I'm glad the figures I gave you were accurate! Don't put all your eggs in one basket though as there are cheaper mortgage rates available out there at the minute... Thanks for your comment, much appreciated!

Well my own bank PTSB weren't very positive when my dad went in to enquire - they said they were lending and then in the next breath the guy said "we aren't very competitive"! If that's not putting me off I don't know what is!! So I'm not even gonna waste my time with them - they did the same with my brother when he was buying, not returning his calls, fobbing him off basically. They didn't even give my dad any information or anything.

With BOI they gave him a first time buyers pack to read through, which I probably could have got on the internet, but it shows they are interested I think.
My dad said they seemed very positive.

I have heard mixed things about AIB. I know they have the best rate out of the main banks (I think?!) but going on my brothers experience he said they were as bad as PTSB.

killers1

leahyl wrote: »

Well my own bank PTSB weren't very positive when my dad went in to enquire - they said they were lending and then in the next breath the guy said "we aren't very competitive"! If that's not putting me off I don't know what is!! So I'm not even gonna waste my time with them - they did the same with my brother when he was buying, not returning his calls, fobbing him off basically. They didn't even give my dad any information or anything.

With BOI they gave him a first time buyers pack to read through, which I probably could have got on the internet, but it shows they are interested I think.
My dad said they seemed very positive.

I have heard mixed things about AIB. I know they have the best rate out of the main banks (I think?!) but going on my brothers experience he said they were as bad as PTSB.

Hi Leahyl, yes ptsb haven't much interest in lending at the minute even though they did reduce their rates for new business recently showing a sign that they may be looking to get back into the market at some stage. One thing you should never ever do is compare your mortgage application to someone elses. No two applications are the same even where applicants earn the same amount of money. There can be huge differences is how each applicant manages their money which could lead to 2 completely different decisions from the same bank. I take it your brother applied directly to AIB himself....Banks are willing to lend where an application ticks all their boxes and is within credit policy... Best of luck!