First time buyer mortgage -what to do

Ozvaldo

hi- im thinking of buying a house and applying for a mortgage im totally clueless in this what should i look out for whats he best bank to get one-which type mortgage is the best

thanks for any info

Geuze

Prepare all your documents:

Six months payslips

Six months current a/c statements

Six months savings accounts statements

Six months CC statements

P60 from last two years

List out all your assets and liabilities

Put your figures into a mortgage calculator to see what you can afford

Make appointments with the banks: AIB, BoI, ptsb, maybe Avant (through a broker)

Look up the Best Buy mortgage rates on AAM

And the hardest part: find the right house.

Ozvaldo

https://www.boards.ie/discussion/comment/119200222#Comment_119200222

Brilliant many thanks

bendy1911

Jumping on this thread, hope you don’t mind OP.

Hoping someone can help shed some light here.

Wife and I went house shopping without AIP, saw a home we wanted, and put in an offer on the house (Accepted 26th April) , paid a €10k booking deposit. (28th April)

We are waiting on two banks to come back to us (PTSB should be back this week (June 17th). It’s looking likely we’ll get approval but vendor is putting extreme pressure on us to close the sale immediately.

So we need to now tell them we don’t have approval yet (it hasn’t been asked yet, but is clearly coming) I suppose?

What would you do in this instance? Estate agent is ringing every second day, vendor’s solicitor is contacting our solicitor etc etc. Our solicitor received contracts on May 17th.

Would love some advice. We are expecting an answer in the next day or two and are avoiding answering calls until we hear.

Thanks 🙏

OscarMIlde

https://www.boards.ie/discussion/comment/119207494#Comment_119207494

Hold tight. We had AIP arranged through a broker when we went sale agreed on the house we eventually bought. Even though we knew everything was fine, our solicitor wouldn't let us sign the contract until we had been given full approval from our mortgage provider. Ask your solicitor to convey that you are fully committed to the sale and that you will sign as soon as you have been given full approval on the mortgage for that house. You could arrange your surveyor also and begin to apply for mortgage protection insurance in the meantime to speed up the process.

Geuze

@bendy1911

in my experience of buying two houses, contracts are signed maybe 6-8 weeks after going Sale Agreed.

I would not sign contracts unless you have a Loan Offer.

Lenar3556

Good advice above, keep in touch with your solicitor and have them manage the situation with the vendors, hopefully the lender will have loan offer ready shortly and the sale can progress.

Note, somebody commented in the other thread that you were at risk of losing your booking deposit - this of course is not the case. If the worst comes to the worst your exposure is quite limited and the booking deposit is refundable in full.

bendy1911

Thanks so much for all yer advice!

I’ve been made feel like we’ll be held liable for time wasted etc if we don’t get approval.

estate agent and vendor made an assumption we had it all sorted so we said nothing and are hopeful PTSB come back in the next 48hours with good news. But we are petrified if they come back with a NO. Does it put us in bad standing with the estate agent (main one in our area) etc.

Jim2007

https://www.boards.ie/discussion/comment/119212053#Comment_119212053

According to your previous post, you have a solicitor and you paid a 10k deposit. Did your solicitor not advise you as to the consequences of going ahead with the transaction, not having financing approved?

Hopefully you did not sign up to a non refundable deposit clause.

Lenar3556

https://www.boards.ie/discussion/comment/119215034#Comment_119215034

He said he paid a booking deposit, two days after the vendor accepted his offer. He almost certainly paid it to the property services professional acting for the vendor. This is entirely refundable should the sale not proceed (for any reason).

Thereafter, any such purchase would be subject to finance, and no solicitor would permit their client to be bound by a non-refundable contract deposit particularly when they had no finance in place in the first instance. Incidentally a contract deposit which is non-refundable is highly unusual in a private treaty sale enviroment, and would tend to arise only in very specific circumstances.

Auctions are different ball game, there is no booking deposit and contract deposits are not normally refundable.

Jim2007

https://www.boards.ie/discussion/comment/119218895#Comment_119218895

As I said, hopefully he did not sign up to a contract with a non refundable clause. Irish courts have recognized the right to the return of a deposit only in the absence of such a clause.

Such contracts were not that uncommon back in the late 70s - early 80s when inflation was as high as 20%. I hope things never get that bad again.

macvin

https://www.boards.ie/discussion/comment/119212053#Comment_119212053

Why on earth did you go looking at houses if you don't even have approval in principle for a mortgage. THIS is why agents look for details before allowing viewings because there are those out there that really can't be arsed understanding the very basics of buying a house.

And the funny thing is this will cost you THOUSANDS! Why, because by the the time you finally get things together interest rates will have risen and the lower fixed mortgage rates will be gone as it is the rate on draw down that applies.

That it has taken 8 weeks for you to get approval in principle would suggest that you do not see any urgency in this and the seller should find another buyer that is a little more interested in being decent and honourable in their dealings

Thistley

https://www.boards.ie/discussion/comment/119212053#Comment_119212053

How did you get on with this? Did it all come good in the end?