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Should you reveal mortgage approval value?

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  • 18-12-2020 12:03pm
    #1
    justindublin
    Registered Users Posts: 345 ✭✭


    Myself and my partner are hoping to get a deposit down on a new home this Jan, but I'm a little unsure (and perhaps even paranoid) on one aspect.

    This second phase is likely to be a little more expensive than the first phase, but also the unit we're interested in also lucks out with a bigger front and back garden so I expect that to bump the price up a little more too.

    Our approval is well above what we need, so considering we're gonna be one of the first ones to try hold I'm concerned that once I reveal the approval value to the agent they'll ramp up the price because they think we have. Is that a thing? Am I being stupid?

    I feel like I'm going up to the shop counter and asking 'How much for this?' and the cashier saying 'Well how much do you have?'


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    #2
    un5byh7sqpd2x0
    Closed Accounts Posts: 1,862 ✭✭✭un5byh7sqpd2x0


    If it’s a new house, the price is the price. It doesn’t matter what your approval is for.


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    #3
    TheBoyConor
    Closed Accounts Posts: 3,292 ✭✭✭TheBoyConor


    Don't reveal how much you are approved for. That is a rookie mistake. Never show your cards.

    If they want to have proof of an approval, then give a copy of the approval with the amount redacted. if they ask, tell them that the amount is confidential information.


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    #4
    woodchuck
    Moderators, Society & Culture Moderators Posts: 15,409 Mod ✭✭✭✭woodchuck


    Ask your bank to provide you with an approval in principal letter for the exact amount. That's what we did. It shows you have the money required, without giving away that you can afford more.


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    #5
    Dubhurler4
    Registered Users Posts: 24 ✭Dubhurler4


    You could also asked your solicitor to write a letter confirming that you have mortgage approval at the level sufficient to buy the house.


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    #6
    dotsman
    Registered Users Posts: 3,635 ✭✭✭dotsman


    justindublin wrote: »
    Is that a thing? Am I being stupid?

    No you are not being stupid because, yes, it is unfortunately very much a thing. It should be illegal for them to ask, but unfortunately it is not. However, you do not need to (and should not) answer this question.


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    #7
    e.r
    Registered Users Posts: 415 ✭✭e.r


    Ask for the price of the new house, secure with a deposit & if they look for written mortgage approval you can show them.
    it will be irrelevant as you will only be drawing down what you need.


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    #8
    badboyblast
    Registered Users Posts: 753 ✭✭✭badboyblast


    You are far from paranoid and no question is ever stupid. Id be telling no one what you are approved for but a builder in limerick advised some people who had deposits down that the asking price was going up as the interest was crazy for some houses being released.

    Get everything in writing.


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