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Question about timelines on house purchase and banks

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  • 23-01-2014 10:49am
    #1
    TheDriver
    Registered Users Posts: 12,417 ✭✭✭✭


    So we viewed a house that we have now learned is at contract signing stage with another buyer but the seller would be happy to sell to us and tell them to go away (don't ask why!!!) but she wants a push on how quickly we can get things signed etc.
    So I will have no problem with mortgage but what type of timeline is realistic in current climate. Will it be really 4 weeks until I would be in a position to sign the contract to buy the house?
    She obviously has someone else to sign and doesn't want that to go....


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    #2
    splashthecash
    Registered Users Posts: 2,308 ✭✭✭splashthecash


    TheDriver wrote: »
    So we viewed a house that we have now learned is at contract signing stage with another buyer but the seller would be happy to sell to us and tell them to go away (don't ask why!!!) but she wants a push on how quickly we can get things signed etc.
    So I will have no problem with mortgage but what type of timeline is realistic in current climate. Will it be really 4 weeks until I would be in a position to sign the contract to buy the house?
    She obviously has someone else to sign and doesn't want that to go....

    Have you a solicitor in place and does the bank have all paperwork? If the bank has only given approval in principal I wouldn't take it for granted. It is very hard to get mortgages at the moment so my best advice would be to go to a broker and let them do the heavy lifting. Given all the back and forth we went through, 4 weeks is in no way enough time...double it at the very least


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    #3
    jon1981
    Registered Users Posts: 4,359 ✭✭✭jon1981


    TheDriver wrote: »
    So we viewed a house that we have now learned is at contract signing stage with another buyer but the seller would be happy to sell to us and tell them to go away (don't ask why!!!) but she wants a push on how quickly we can get things signed etc.
    So I will have no problem with mortgage but what type of timeline is realistic in current climate. Will it be really 4 weeks until I would be in a position to sign the contract to buy the house?
    She obviously has someone else to sign and doesn't want that to go....

    all depends

    have you arranged a valuer? surveyor? solicitor? life assurance? house insurance? all this needs to be in place before a bank will issue the cheque.

    Have they all their compliance certs with building reg in order? The survey likely to yield any issues?

    from booking deposit to close it took us 6 weeks but we had a very good broker who chased everything (valuer, surveyor, life assurance...etc) and also our solicitor was very prompt. The main delay on our side was the vendors solicitor who was **** and kept forgetting to send our solicitor required docs, they were very slow in amending the contract. Also they had to go searching for certificates relating to renovation and extension works.


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    #4
    TheDriver
    Registered Users Posts: 12,417 ✭✭✭✭TheDriver


    I have nothing in place as am public servant, permanent on very good salary so bank said to just apply when ready as there would be no issue with my savings


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    #5
    jon1981
    Registered Users Posts: 4,359 ✭✭✭jon1981


    TheDriver wrote: »
    I have nothing in place as am public servant, permanent on very good salary so bank said to just apply when ready as there would be no issue with my savings

    hmmm well i'd say 4 weeks is not going to happen. You are at the earliest stage in the process. Never mind what the banks say now, it will be a different story when you apply and they are looking for all sorts of documentation off you. Would you not engage a broker to speed it along?

    Also the savings is just the part of it, in order for the banks to be comfortable with the risk they are taking on they need all of the stuff above i outlined.


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    #6
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    If you haven't applied for a mortgage yet I think you are looking at minimum 6 weeks to complete purchase. I wonder why the vendor is pulling out when contracts are ready to be signed. More than likely the purchaser's Solicitor may have raised queries on the title or perhaps the buyers are not mortgage approved yet however you are in a similar situation.

    If you are serious about the purchase you need to (1) place a deposit on the property (this is repayable once contracts are not signed) (2) Employ a good Solicitor - Once a deposit is paid the contracts will be issued to your Solicitor who will check title and issue queries on same - this is where a delay can be incurred due to vendors Solicitor slow in answering queries and submitting documents. (3) Apply for a mortgage - you can borrow up to 92% of the purchase price so will need 8% plus legal fees and 1% stamp duty of purchase price as savings.

    Lender will look for evidence of earnings - Salary Certificate, P60 and 3 recent payslips, 6 months current and savings statements, 12 months statements on short term borrowings, 6 months credit card statements.

    Best of luck


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