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FTB Booking Deposit

  • 07-03-2022 10:13am
    #1
    FTBnewb
    Registered Users, Registered Users 2 Posts: 18 ✭


    Hi,

    I am awaiting mortgage approval through my broker. I am fairly confident I will be approved. I have applied As there is a new phase of a development I am interest in being built. I will be availing if the HTB.

    EA have contacted me about the houses seeing if I am keen or not.

    My question is: is it worth paying the booking deposit (€5000) now for the house even though I’m not mortgage approved yet? Also, will it look bad if my savings are cut by €5000 before I have been approved, even though it is for the booking deposit?



Comments

  • #2
    Creamy Goodness
    Registered Users, Registered Users 2 Posts: 26,584 ✭✭✭✭Creamy Goodness


    The EA should be looking for proof of funds to purchase the house via what's called Approval in Princpal (AIP) from your mortgage provider (this is a simple document to say the bank will lend you a maximum of €xxx,xxx over xx years takes a few days to get once you start talking to a bank).

    The bank will count the booking deposit as part of your savings, but it will look a little suspect to them if they haven't even given you the AIP letter yet.



  • #3
    FTBnewb
    Registered Users, Registered Users 2 Posts: 18 ✭FTBnewb


    Thanks!

    I’ve been waiting 2 weeks for AIP and I’m just terrified that the houses will be gone in the meantime.

    Impatience is a curse 😂



  • #4
    Creamy Goodness
    Registered Users, Registered Users 2 Posts: 26,584 ✭✭✭✭Creamy Goodness


    https://www.boards.ie/discussion/comment/118744588#Comment_118744588

    Get it in writing from the EA that the booking deposit is refundable and subject to loan offer, otherwise you'll be down €5k and it'll set you back a month or two savings.



  • #5
    ddarcy
    Registered Users, Registered Users 2 Posts: 589 ✭✭✭ddarcy


    https://www.boards.ie/discussion/comment/118744598#Comment_118744598

    this is what you do. I’ve put a deposit d down on a house but was told that I can get it refunded. It’s non refundable once contracts are signed. I’m waiting on AIB to approve me now, but the expected build date isn’t for another 6 months and now all houses are reserved. So you’re not the only one



  • #6
    kev_s88
    Registered Users, Registered Users 2 Posts: 2,641 ✭✭✭kev_s88


    yeh as a standard the booking deposits are fully refundable until contracts are signed (im sure not in all cases, but most).

    we put down our booking deposit without AIP as we were able to demonstrate to the EA that we were just waiting on the bank to come back to our broker with our AIP. the main reason the EA will want to see an AIP is so that you can show proof of funds, and that they're not wasting their time with someone who is just taking a punt, and taking an available house off the market. EA will always want to sell the houses as soon as possible, and not be waiting around for people who have booking deposits down, but no AIP in sight.



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