Timeline of mortgage finances

Meathlass

Just wondering at what stage of the bidding/sale agreed process that you have to present your finances?

Bidding on a house is at €300k. My mortgage and savings currently get me to €295k (possibility that mortgage offer may increase due to raise in salary which would cover shortfall). I'm saving €600 a week so I would expect by the time contracts are signed I will have the total amount. Or once my bid is accepted will the estate agent look for proof of all the funds immediately.

GoldFour4

Sounds like you should pull out of the bidding as you can't afford the property. You will have solicitor, stamp duty, surveyor etc on top of the €30k needed for the deposit.

Estate agent really should have asked for proof of funds before registering a bid.

The EA should/will look for proof of funds. You will also need solicitor fees and stamp duty.

silver2020

€600 a week savings is superb.

From sale agreed to actually purchasing takes 10-12 weeks normally and 16-20 weeks is not unusual.

I purchased a small investment property in 2020 and even at a push and no bank involved and no paperwork delay, it still took 7 weeks from booking deposit to purchase.

It's a very slow and cumbersome process.

So 10-12 weeks and a bit of a squeeze, you'll be ok.

EA will just want to see that it's mostly there. They won't be checking for every cent.

Kurooi

Estate agent normally asks for proof of funds at your first bid, but they often don't. Most will do it by time the bidding gets serious as they have to start choosing. Being short a few grand is OK you can just say you have the cash handy. If your mortgage approval contains a gift you can say that you got a cash rich family that will help out. If your approval did not say that DO NOT tell them you require family help.

The mortage approval should be more than sufficient in most cases, I sort of understand EAs when they see you need 100-200k deposit to bridge but if he wants proof that you've got a deposit of 30-60k - you could just say no, your bank has already verified you have a deposit. Of course that doesn't put you in the best terms with the EA and they might favor a bidder that did show their papers - but I've done this and it went OK EA wanted proof of funds beyond the mortgage approval I told them I won't share my statements with them but the bid is still on. They fussed a bit then accepted regardless.

So it's possible to buy time. Been there done that. But will you have the money in 1-2 months time when it comes time to pay up is a serious matter. If you're really counting on that pay increase you'd need that to come through very quickly and get the mortgage re-approved they don't just automatically give you more cash. If I were you I would be very wary on which point any deposit is non-refundable, or solicitors start charging fees. Don't cross that threshold if you don't have all the cash you need (incl solicitor fees and stamp duty)

Meathlass

Thanks for your comments. I should just clarify that I got the salary increase last summer but never went back to the bank about increasing my AIP which I'm really kicking myself about now as it would bring my savings and mortgage up to over €310k! I have a deposit of €50k and I have another separate €8k set aside for solicitor/stamp duty/surveying etc so I was really looking to bridge the €5-8k gap. Anyway, after much thinking and a sleepless night I am letting this property go even though it's perfect for me. I couldn't deal with the stress of trying to delay things while I pull the money together and I don't want to needless push the price up on the other party if they're going to outbid me regardless.

This is the 8th house I've been outbid on in a year, including twice to a cash underbidder. Getting depressing but onwards to the next viewing.

AmberKat

Sorry but letting a house that is "perfect for you" go for the sake of updated paperwork seems strange to me.

If it's the house for you get the updated AIP, it doesn't take long. Then if you are outbid at least you tried.

Having things updated means, you'll also be in a better position for the next one.

Meathlass

https://www.boards.ie/discussion/comment/118665180#Comment_118665180

Broker said that it would take Avant several weeks to review my AIP application so I doubt the estate agent or the other bidder was going to hang around for that. I have put in all my paperwork so the application is in progress for the next time and if the current bidder pulls out of this house. The house went sale agreed to the other party on Friday afternoon - 10 days after it was put on the market and 7 days after the first viewing.