Deposit for mortgage question loan possible

Bikerguy

Long story short

I am on approx 60+ and wife 30+ we have been paying high rent 1000+ a month plus we are saving 2k a month... I am 10k short from deposit. 350 cost of house... I have saving history as said before i am saving 2k a month...

Do bank perform credit check after you get fully accepted i mean between accept and drawn down... My parents can borrow me the money for a week only...just to present it.... But i would like to get short term loan from CU between the drawn down and acceptance period... As house we are after just appeared to be for sale and if i dont act quickly it will not be available... I wil pay the loan within a year... Without issues whatsoever...

Did. Anybody borrow for the down payment when signing off the mortgage?

ELM327

https://www.boards.ie/discussion/2058338891/deposit-for-mortgage-question-loan-possible

10k short at 2k per month is only 5 months. If you get approved and go sale agreed now it is likely to take 3-4 months in processing anyway. You can't borrow a deposit, the credit union loans show up now when banks check the register. Yes they will check between approval and drawdown

Bikerguy

https://www.boards.ie/discussion/comment/121848122#Comment_121848122

I know...the house wont last that long and i am ready to put deposit down... As its perfect... Have kids in school, job wise etc.

Anybody else? Are you sure bank check twice between credit approval and drawn down? As i would have the deposit available to show from my parents.... I know the run credit and backround check but do they do it twice?

Thank you

ELM327

https://www.boards.ie/discussion/comment/121848675#Comment_121848675

I've bought two properties with mortgage, 2017 and 2022, and they checked both times. Both took 4-5 months from offer accepted to close.

Bikerguy

https://www.boards.ie/discussion/comment/121848720#Comment_121848720

Thats me then there... Will have to wait or find someone who can lend me 10k and take loan after the drawn down or pay them back in 2k a month

XsApollo

Have you even got approval in principle or been to the bank yet?

if you haven’t then if you are saving 2k a month , you will more than likely have the 10k saved by the time you get anywhere close to buying.

JVince

can your parents possibly get a credit union loan?

But also, legal paperwork can take 3+ months. The seller can also agree for a lower deposit and this gives you some extra time.

If you can get the property at 350k (sometimes it gets bid higher), suggest AFTER agreeing to buy and paying booking deposit and the contract is sent to you, that a €25,000 (you might have 30k by then) deposit is acceptable. They will accept it

Then cut back every possible expense and also check for any tax you are due back - remember both you and your wife can get the rent tax credit.

xyz13

Your parents can *lend* you money.

You can *borrow* money from your parents.

ELM327

https://www.boards.ie/discussion/comment/121849456#Comment_121849456

Up to a certain percentage of the deposit, yes. The bank will need a letter from them (parents) disclaiming any interest in the property and that it's a gift.

I did this (well, faked it) for my first property.

Bikerguy

I can get mortgage.... I am aware of possibilities... Just wanted to know really if i can get 10 in time between approval and drawn down....thats it...

I have taxes sorted and cant cut more then 2k a month... Its already tight.... So i will have to wait or ask friends/close family for help...short term

ted1

https://www.boards.ie/discussion/2058338891/deposit-for-mortgage-question-loan-possible

Banks look to see where the funds came from and if it’s a “gift” the look for a letter starting as much and that it doesn’t have to be repaid.

have you allowed for Stamp Duty, solicitor fees, appliances etc?

27cyrix

You don't need to transfer funds from your parents to your account right now. Instead, you can ask your parents to write you a gift letter stating that they are gifting you a certain amount of money.

This money only needs to be in your account between you are ready to tell your bank that you have found a property to buy and bank release fund. The bank will check your bank account before the loan is released.

halkar

You should get your AIP sorted first if it's not in place yet before making an offer on the house. If house just came in to market it may go in bidding war and you may need more deposit. You will also need solicitor expenses. Budget all these and approach to your bank. Since it may take months until sale finalised bank may be flexible to wait for you to save and borrow remaining from family.

Bikerguy

Just wondering what will be solicitors price? Is it percentage or fix fee?

Bikerguy

Got that sorted...approved today and got the funds in the end....thanks to all