Putting down deposit before applying for mortgage

HairySalmon

I’ll be applying for a mortgage next month as I need a full 6 months of clean saving. There’s a development I love that’s nearly gone, so I’m considering putting a booking deposit down.

Is this something that can be done on the developer’s side with AIP, and how will the bank look at potentially taking from savings to do so?

If it’s more trouble than it’s worth I’ll just leave it.

joeguevara

Is it a booking deposit which is refundable as opposed to an actual deposit?

HairySalmon

https://www.boards.ie/discussion/comment/118009305#Comment_118009305

It would be a booking deposit yeah

Seth Brundle

You may be aaked to prove that you have the necessary funds in place before your bid is accepted

joeguevara

https://www.boards.ie/discussion/comment/118009305#Comment_118009305

If it’s a booking deposit it would be refundable up until you sign contracts.

There shouldnt be an issue with booking deposit

HairySalmon

And could there be an issue dipping into savings from the bank’s perspective even if it’s for the purpose of buying a house?

Emma2019

Both your booking deposit and your full 10% deposit are refundable until both you and the vendor have signed contracts and the contracts have been returned to you.

https://www.boards.ie/discussion/2058212794/putting-down-deposit-before-applying-for-mortgage

What do you mean by "clean saving"?

The bank doesn't care if you take cash out of your savings, as long as you still have enough to cover the balance of your deposit, and as long as you're not dipping into savings for the purposes of regular expenditure (e.g. groceries).

G_R

https://www.boards.ie/discussion/comment/118009754#Comment_118009754

No.

Also, talk to a bank/broker. It's not an automatic decline if you don't have 6 months savings. You may well be able to apply and get approval now.

C14N

https://www.boards.ie/discussion/comment/118009754#Comment_118009754

No, definitely not. When the banks looks at your savings they will have an actual person go through and review the transactions in the statements. If something looks odd to them (like one big withdrawal), they'll call or email you to find out what it was about. If you tell them it was to put a deposit down on the property you're looking for, that will almost certainly be an acceptable excuse (unlike, say, if you put it into your current account a day before spending that amount at a race track or on a night out).