Saving/Applying for a mortgage 2015/16/17/18/19

GingerLily

For my deposit - we transferred it into our current account a week before we thought we had to drawdown, my lender then was able to confirm the funds before sending the mortgage pack to legal. Once that money was sent from our bank to our solicitor we then sent our remaining deposit to our solicitor.

I was advised to do this by my lender, so I don't know if this is the process for all banks.

TheShow

Creamy Goodness wrote: »

Who's the best for home insurance these days? I'm getting the mortgage with AIB and already have mortgage protection with them through Irish Life. Thinking of going with the AIB provider for ease of application and that they have 30% off (according to bonkers).

Also when's the best time to get the home insurance sorted? Can it be done like mortgage protection in that I can sort it all up until the date I get the keys?

just google home insurance and you'll get millions of brokers and get quotes off 5 or 6 and see whats best.
You need to have the policy docs submitted to the bank with their interest noted on the policy before you can draw down your mortgage, so I'd do it as soon as you can. you can specify a start dare in the future for the policy.

z0oT

For married couples does it matter at the AIP stage if the savings are in one of your names only? Our savings are all in my name, is it better to have them split say 50/50 in accounts in both names or joint accounts?

We had to raid my wife's savings for the cost of her first time Car Insurance in her own name on a Learner Permit. :rolleyes:

Just curious as to what other people's experience is with this.

TheShow

z0oT wrote: »

For married couples does it matter at the AIP stage if the savings are in one of your names only? Our savings are all in my name, is it better to have them split say 50/50 in accounts in both names or joint accounts?

We had to raid my wife's savings for the cost of her first time Car Insurance in her own name on a Learner Permit. :rolleyes:

Just curious as to what other people's experience is with this.

Doesn’t matter one iota.

wardides

I'm assuming some in here have had experience of delayed closing dates, just look to understand how things work. Put down a booking deposit on a new build a few weeks ago, so expecting the contracts soon. Broker has told us to hold off on pulling the trigger on application until we need to (when we receive the contracts probably). But if we get a mortgage approved by end of August, for example, does this only last for 6 months? How does this work if the house is not ready until March 2019 say? Couple of key questions really;

Do we need to re-approve for mortgage once 6 months has lapsed, and how complicated is this?
When do mortgage payments start? Currently renting so can't really pay rent and mortgage at same time.

purpleisafruit

wardides wrote: »

I'm assuming some in here have had experience of delayed closing dates, just look to understand how things work. Put down a booking deposit on a new build a few weeks ago, so expecting the contracts soon. Broker has told us to hold off on pulling the trigger on application until we need to (when we receive the contracts probably). But if we get a mortgage approved by end of August, for example, does this only last for 6 months? How does this work if the house is not ready until March 2019 say? Couple of key questions really;

Do we need to re-approve for mortgage once 6 months has lapsed, and how complicated is this?
When do mortgage payments start? Currently renting so can't really pay rent and mortgage at same time.

I know with Bank of Ireland, they allow 12 month full approval once the property is identified on the application.

TheShow

wardides wrote: »

I'm assuming some in here have had experience of delayed closing dates, just look to understand how things work. Put down a booking deposit on a new build a few weeks ago, so expecting the contracts soon. Broker has told us to hold off on pulling the trigger on application until we need to (when we receive the contracts probably). But if we get a mortgage approved by end of August, for example, does this only last for 6 months? How does this work if the house is not ready until March 2019 say? Couple of key questions really;

Do we need to re-approve for mortgage once 6 months has lapsed, and how complicated is this?
When do mortgage payments start? Currently renting so can't really pay rent and mortgage at same time.

You will generally need to provide evidence of mortgage approval before contracts will issue. New builds can be tricky in terms of timing, but rest assured you wont be paying rent and a mortgage as the mortgage will only drawdown when the sale is due to close and you get the keys. Some banks AIP lasts for 6 months and some for 12, not sure which ones, but if your broker is anygood, he will know. if the AIP lapses, you will need to get reapproval and this is not too difficult if your financial position has not deteriorated from the initial approval. generally will need to provide up to date bank statements and playslips etc.
You should talk to the selling agent and ask what the expected timeline is, they will have a rough idea, particularly if a good few houses have sold already. Although I'd imagine that you will need to show evidence of approval very soon, normally within 21 days of paying booking deposit, but it can vary.

Undervalued

We’ve hit a big problem and Don’t know what to do.

Sale agreed, Mortgage approved everything in motion

We were sale agreed at 450k. There were 4 bidders at 440 2 dropped out at 445 and we were joint highest

AIB Valuer report comes in on Friday evening at 420 with a comment that the price is only at 450 because it’s a desirable area with high demand

Can anyone explain this to me. Isn’t demand a part of the equation. If not why are prices going up at all?

Our mortgage adviser (also AIB) was shocked and doesn’t understand the valuation and went to her manager who was also confused

Was too late on Friday to do anything but she will look into it tomorrow

Is there anything we can do from our side?

TheShow

Undervalued wrote: »

We’ve hit a big problem and Don’t know what to do.

Sale agreed, Mortgage approved everything in motion

We were sale agreed at 450k. There were 4 bidders at 440 2 dropped out at 445 and we were joint highest

AIB Valuer report comes in on Friday evening at 420 with a comment that the price is only at 450 because it’s a desirable area with high demand

Can anyone explain this to me. Isn’t demand a part of the equation. If not why are prices going up at all?

Our mortgage adviser (also AIB) was shocked and doesn’t understand the valuation and went to her manager who was also confused

Was too late on Friday to do anything but she will look into it tomorrow

Is there anything we can do from our side?

Talk to your bank, they need to figure it out. You could try to talk tot he valuer, but he/she might not engage in conversation as was appointed by the bank to carry out the valuation.
Have other houses in the area sold for 450? try and do some research on house sales in the area so you can go in all guns blazing!

Bank may only take 420k as the value of the house, which could put you in a sticky situation. are you prepared to pay 30k more than the house is worth?

levi

TheShow wrote: »

Talk to your bank, they need to figure it out. You could try to talk tot he valuer, but he/she might not engage in conversation as was appointed by the bank to carry out the valuation.
Have other houses in the area sold for 450? try and do some research on house sales in the area so you can go in all guns blazing!

Bank may only take 420k as the value of the house, which could put you in a sticky situation. are you prepared to pay 30k more than the house is worth?

Bank may agree to allow you engage a second valuer. Have heard of it happening before in a similar case recently.

Undervalued

TheShow wrote: »

Talk to your bank, they need to figure it out. You could try to talk tot he valuer, but he/she might not engage in conversation as was appointed by the bank to carry out the valuation.
Have other houses in the area sold for 450? try and do some research on house sales in the area so you can go in all guns blazing!

Bank may only take 420k as the value of the house, which could put you in a sticky situation. are you prepared to pay 30k more than the house is worth?

They don’t come up that often in the area. There haven’t been any sold since 2017 and only 2 then. The market was lower then. Don’t really have the extra 30 so in a bind unfortunately

Undervalued

levi wrote: »

Bank may agree to allow you engage a second valuer. Have heard of it happening before in a similar case recently.

Mortgage adviser proposed that too. She is going to talk to some colleagues on Monday about it

Fingers crossed.

Caught us by surprise to be honest

levi

Undervalued wrote: »

Mortgage adviser proposed that too. She is going to talk to some colleagues on Monday about it

Fingers crossed.

Caught us by surprise to be honest

It’s a stressful enough time without this BS... the reality is in a rising market that the price register will be out of date so if the valuer is depending on comparables as opposed to having experience in the area, there is a big risk of this happening.

Fingers crossed it will all get sorted early next week for you!

shamrock55

Roughly how much do mortgage brokers charge to look for a mortgage for you

Tipsy McSwagger

shamrock55 wrote: »

Roughly how much do mortgage brokers charge to look for a mortgage for you

Nothing the bank pays them after sale complete

dudara

shamrock55 wrote: »

Roughly how much do mortgage brokers charge to look for a mortgage for you

Some charge a fee, mainly to weed out time wasters, some don’t. We met with two brokers, one quoted a fee, one was free. We liked both, but went with the free one as we liked her better. My advice, go with one who you think will work for you.

bush

Interested Observer wrote: »

Decided to accept a new job so I've basically invalidated all our mortgage approvals.

Guess nobody has experience of banks giving out a mortgage while on probation?

Couldn't turn down the job so guess we'll be waiting 6 months.

PTSB told me if I changed job then my approval would still stand. They said I would only have to reapply if I wanted to apply for more money if the salary was higher. Its worth checking with whoever has given you approval.

limnam

dudara wrote: »

Some charge a fee, mainly to weed out time wasters, some don’t. We met with two brokers, one quoted a fee, one was free. We liked both, but went with the free one as we liked her better. My advice, go with one who you think will work for you.

We had a similar situation but went with the one charging the fee.


In the end it was worth every penny. Agree with the above, go with the one you feel most comfortable with

TheShow

shamrock55 wrote: »

Roughly how much do mortgage brokers charge to look for a mortgage for you

Dont ever pay a mortgage broker, they get paid commission by the banks. some crooks do try to charge also, just ask them upfront and walk if they do charge.

hanaimai

Can anyone who has been through the AIP process advise if they consider it worthwhile to get underwritten AIP? My understanding was that I would have to apply for AIP with all required documents (statements, P60s, salary certs, payslips etc.) and these would be assessed by the bank and then AIP granted. However, one bank granted me AIP over the phone based only on the figures I provided them for salary etc. They advised that I can apply with all documents for 'underwritten AIP' if I want, or I can just wait until I have found a property and then apply with all docs for a loan offer.

What do people think? Is it fine to just proceed with this AIP or should I apply for a proper assessment? Do all banks offer this AIP without checking documents or is this one bank an anomaly? I've been gathering all my documents to get ready to apply for AIP with the other banks but now I'm not sure if I even need them or not!

Any advice or experiences of people who applied for AIP themselves welcome!

Creamy Goodness

Isn’t AIP over the phone without underwriting just the same as the online calculators?

Get underwritten AIP, it’s the next step anyways so you might as well get it.

hanaimai

Creamy Goodness wrote: »

Isn’t AIP over the phone without underwriting just the same as the online calculators?

Get underwritten AIP, it’s the next step anyways so you might as well get it.

Seems so in terms of information provided, except they sent me an official letter saying I've been approved in principle for X amount.

Undervalued

hanaimai wrote: »

Seems so in terms of information provided, except they sent me an official letter saying I've been approved in principle for X amount.

I think it’s better to provide documentation etc and get the underwritten offer. Avoids any surprises in the future when you may have already found somewhere you like

seamus

The underwritten offer is useful on three counts;

1. It means you've provided all your documentation and there's no scramble then to get it all together when you go sale agreed. You convert an underwritten offer into a formal offer with less fuss.
2. It puts you in a stronger bidding position - it's as good as a loan offer, so the estate agent knows you have the funding. Approval in Principle isn't worth the paper it's written on, from the vendor's point of view.
3. It gives you more surity. AIP gives you a ballpark figure of what you can borrow, but the final amount may be €10k short. Which means you have to drop out and start again. The underwritten offer lets you know exactly what you can borrow, giving you more confidence in placing bids.

hanaimai

Thanks all for the advice so far. I was thinking the same myself in terms of clarity but was confused as the advisor did not seem to think it was necessary to apply for underwritten AIP.

I doubt I'll be going with this bank anyway (they don't have the best rates) but I'll make sure I just get straight up underwritten AIP from the others.

TheShow

hanaimai wrote: »

Can anyone who has been through the AIP process advise if they consider it worthwhile to get underwritten AIP? My understanding was that I would have to apply for AIP with all required documents (statements, P60s, salary certs, payslips etc.) and these would be assessed by the bank and then AIP granted. However, one bank granted me AIP over the phone based only on the figures I provided them for salary etc. They advised that I can apply with all documents for 'underwritten AIP' if I want, or I can just wait until I have found a property and then apply with all docs for a loan offer.

What do people think? Is it fine to just proceed with this AIP or should I apply for a proper assessment? Do all banks offer this AIP without checking documents or is this one bank an anomaly? I've been gathering all my documents to get ready to apply for AIP with the other banks but now I'm not sure if I even need them or not!

Any advice or experiences of people who applied for AIP themselves welcome!

AIP over the phone doesnt mean anything really. Its more an opinion based on what youve told them. You should go for underwritten AIP - its holds far more water.

z0oT

hanaimai wrote: »

Any advice or experiences of people who applied for AIP themselves welcome!

We're both going for AIP with BOI now.


It's a case of getting all the required documents together (Statements, Salary Certificates, and Payslips) and then it gets submitted to the underwriters. I've been told after that happens it'll be a period of 6-8 days until we get approval or not.


It seems a very small price to pay to get the underwritten AIP. It shouldn't be too much hassle to get what they're asking for together too.

Undervalued

So it looks like the bank are going to go with the lower valuation

Having seen ithe valuation it makes no sense to me still as he has compared prices of properties in a completely different area but there seems to be nothing we can do

We now have to restart our mortgage application which is more bs

We will have to inform the vendor of course.

I assume we can offer a lower amount based on the valuation but does this go through our solicitor or do we need to contact the agent again?

TheShow

Undervalued wrote: »

So it looks like the bank are going to go with the lower valuation

Having seen ithe valuation it makes no sense to me still as he has compared prices of properties in a completely different area but there seems to be nothing we can do

We now have to restart our mortgage application which is more bs

We will have to inform the vendor of course.

I assume we can offer a lower amount based on the valuation but does this go through our solicitor or do we need to contact the agent again?

Sorry to hear that, awful being so close but yet so far based on something that you cant control. You can go through the agent to make a new offer, explain the circumstances. obviously its up to the vendors to accept or not. Presuming you're only sale agreed, you can get full deposit back without recourse if the sale falls through. Would the bank entertain a second valuation from a valuer on their list of appointed valuers?

Undervalued

TheShow wrote: »

Sorry to hear that, awful being so close but yet so far based on something that you cant control. You can go through the agent to make a new offer, explain the circumstances. obviously its up to the vendors to accept or not. Presuming you're only sale agreed, you can get full deposit back without recourse if the sale falls through. Would the bank entertain a second valuation from a valuer on their list of appointed valuers?

Asked advisor on second valuer but doesn’t sound hopeful.

Only option really is to go back with lower offer and hope they think that others Will have the same issue and at least consider it