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Saving/Applying for a mortgage 2015/16/17/18/19

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    #422
    Santy2015
    Registered Users Posts: 1,065 ✭✭✭Santy2015


    Jet Black wrote: »
    I'm FTB, single applicant with around 150k. Started looking in Dublin last summer for a place with my limited budget. I was looking in Finglas because it was one of the few areas I could afford, I grew up there and know the good/bad areas.

    I was ringing estate agents asking about places under 150k to arrange a viewing, 'Oh the current bid is at 180k' was the reply to many of them. Some were 70k over the asking by the time I called. So I went to open viewings, they were packed and had a lot of interest. People in the same situation as me and were just buying what they could with their limited budget. I was outbid on every property I viewed and the bidding went well past the houses value. The last place I viewed I really liked the location. Friends and family lived on the road and it was quiet. Again it was packed, at least 10 people looking at it. I set my price and started bidding. Estate agent said 5 others bidding on it... Great I thought. I was outbid again after a few weeks and gave up on it. There was nothing else in the area I liked so stopped looking and said I'd start again in January.

    January came and nothing had really changed. I was about to start looking further out when the estate agent called and offered me the last house I viewed. I was delighted, been stressful the last two months but I'm going to the solicitors to sign next week and then all I have to do it wait until I get the keys. Good luck to everyone here, especially single applicants, I know the stress..

    That's great to hear, my fiancée and I are only in the process of applying which has been a pain. We've viewed houses and have picked one, just waiting for the bank to actually give us approval


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    #423
    Santy2015
    Registered Users Posts: 1,065 ✭✭✭Santy2015


    Question and I think I'm right in the answer but just double checking. Friend just started saving for a mortgage and is convinced that his credit union loan won't affect the amount they borrow if he pays it by cash not standing order. I know that the bank will want to know if you've got a loan and there's no way of not finding it out. Am I right? They scrutinise everything now.


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    #424
    Monife
    Registered Users Posts: 3,014 ✭✭✭Monife


    Santy2015 wrote: »
    Question and I think I'm right in the answer but just double checking. Friend just started saving for a mortgage and is convinced that his credit union loan won't affect the amount they borrow if he pays it by cash not standing order. I know that the bank will want to know if you've got a loan and there's no way of not finding it out. Am I right? They scrutinise everything now.

    The bank will know as Credit Unions are now covered under Credit Rating Reports.


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    #425
    Santy2015
    Registered Users Posts: 1,065 ✭✭✭Santy2015


    Monife wrote: »
    The bank will know as Credit Unions are now covered under Credit Rating Reports.

    Thanks, knew I was right.


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    #426
    Sleepy
    Registered Users Posts: 24,149 ✭✭✭✭Sleepy


    Just placed my first offer on a house :eek: No response from the estate agents phone so sent it by email, guessing I won't hear back until Monday.

    I put in a low ball (just under 90% of asking) as the house has been on the market for about 6 months. Doubt it'll be accepted but it seems the best way to find out what the vendor is really looking for.

    No one told me to expect my pulse to quicken as much as it has!


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    #427
    zl1whqvjs75cdy
    Closed Accounts Posts: 4,042 ✭✭✭zl1whqvjs75cdy


    Best of luck sleepy, hope it comes in for you.

    Can I just ask a general question on how people decided on their budgets? I kind of have 300 k in my head but I just pulled it out of the air really. Is their a way to put a bit more logic on it than that besides multiples if salary?


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    #428
    Sleepy
    Registered Users Posts: 24,149 ✭✭✭✭Sleepy


    3.5 times salary to get a guide of what a bank would be willing to lend, plus savings less estimated cost to buy to get a maximum figure.

    Then look at some on-line repayment calculators to see how much that would cost to repay over 25/30/35 years. Stress test that by using one of the calculators that lets you enter the APR and see whether that's an amount you can manage to pay without starving etc. I stress tested the amount we wanted to borrow by assuming interest rates would raise to 8%. It's unlikely in the current climate but they went that high, and higher in the 80's so I wanted to see it as a worst case scenario.


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    #429
    SarahMollie
    Closed Accounts Posts: 2,843 ✭✭✭SarahMollie


    donkeyoaty0099 wrote: »
    Best of luck sleepy, hope it comes in for you.

    Can I just ask a general question on how people decided on their budgets? I kind of have 300 k in my head but I just pulled it out of the air really. Is their a way to put a bit more logic on it than that besides multiples if salary?

    I found my budget was dictated by the amount I could borrow. I ended up going a bit over and I had savings to make up the difference.

    I was buying in Dublin though, so I'd say thats typical to need to maximise what you can borrow in order to get what you want. If you're buying in a cheaper part of the country, its hard to say. I guess go by the PPR for a realistic indication of what the type of property you want has cost in the past.

    No point in borrowing the max if you don't need to!


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    #430
    whiskeyman
    Registered Users Posts: 12,564 ✭✭✭✭whiskeyman


    Sleepy wrote: »
    Just placed my first offer on a house :eek: No response from the estate agents phone so sent it by email, guessing I won't hear back until Monday.

    I put in a low ball (just under 90% of asking) as the house has been on the market for about 6 months. Doubt it'll be accepted but it seems the best way to find out what the vendor is really looking for.

    No one told me to expect my pulse to quicken as much as it has!

    Best of luck Sleepy.
    Hopefully with it on the market for so long, they'll perk up and have a good look at the offer.


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    #431
    Santy2015
    Registered Users Posts: 1,065 ✭✭✭Santy2015


    Best of luck Sleepy :), still waiting to hear from the bank about our application going on 5 weeks now, a supposed back log is slowing things up


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    #432
    Butters1979
    Registered Users Posts: 1,164 ✭✭✭Butters1979


    Santy2015 wrote: »
    Best of luck Sleepy :), still waiting to hear from the bank about our application going on 5 weeks now, a supposed back log is slowing things up

    What bank is this? 5 weeks sounds way to long. Have you tried another bank while you are waiting? Never hurts to have your figure in more than one pie.


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    #433
    Heisenberg.
    Registered Users Posts: 7,541 ✭✭✭Heisenberg.


    This post has been deleted.


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    #434
    Santy2015
    Registered Users Posts: 1,065 ✭✭✭Santy2015


    Butters1979 wrote: »
    What bank is this? 5 weeks sounds way to long. Have you tried another bank while you are waiting? Never hurts to have your figure in more than one pie.
    We have with BOI, Kbc and Aib, just still waiting. No news is good news I suppose. Thinking positively


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    #435
    zl1whqvjs75cdy
    Closed Accounts Posts: 4,042 ✭✭✭zl1whqvjs75cdy


    Heisenberg. wrote: »
    Yes. How much can you afford/do you want to pay back every month?

    Do some numbers in this calculator and figure out the monthly repayments you're comfortable with. http://www.mortgages.ie/go/first_time_buyers/mortgage_payments_calculator

    If your current budget is €300k then you'll need a €38k deposit.
    The repayments on a €262k loan will be between €1100 & €1350.

    Cheers. Sounds very doable. Just depends how long I can put up with renting ha.


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    #436
    SB_Part2
    Closed Accounts Posts: 1,951 ✭✭✭SB_Part2


    I wasn't planning on buying or even looking to buy until closer to next year. My dream house has just become available. I'm kicking myself because I can't show 6 months of savings because I didn't save anything at Christmas. I didn't think I'd be buying within 6 months of it so just wrote it off that month.

    Hoping that my application still goes through. In the next month I'll be in a more financial stable situation with all loans paid off.


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    #437
    Sleepy
    Registered Users Posts: 24,149 ✭✭✭✭Sleepy


    A gap in savings doesn't prevent you from applying it'd just mean that you'd be judged as having saved 5/6ths of your regular monthly amount. Certain banks also require less than 6 months worth of statements etc.

    Worth talking to a broker if you have the deposit together and think the house is within reach.


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    #438
    Sleepy
    Registered Users Posts: 24,149 ✭✭✭✭Sleepy


    Sleepy wrote: »
    Just placed my first offer on a house :eek: No response from the estate agents phone so sent it by email, guessing I won't hear back until Monday.

    I put in a low ball (just under 90% of asking) as the house has been on the market for about 6 months. Doubt it'll be accepted but it seems the best way to find out what the vendor is really looking for.

    No one told me to expect my pulse to quicken as much as it has!
    So estate agent came back yesterday to inform us that another couple have offered asking but as they're in a chain and we're not, if we could offer 95% of asking, the vendor would accept.

    TBH, if I knew that that figure would seal the deal, I'd be reasonably happy to pay it but can't help but feel that it's very convenient that another couple came out of the woodwork and bid the same weekend we did!

    I upped our offer to a few thousand shy of the 95% and will see how we go.


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    #439
    youcancallmeal
    Registered Users Posts: 7,985 ✭✭✭youcancallmeal


    Sleepy wrote: »
    So estate agent came back yesterday to inform us that another couple have offered asking but as they're in a chain and we're not, if we could offer 95% of asking, the vendor would accept.

    TBH, if I knew that that figure would seal the deal, I'd be reasonably happy to pay it but can't help but feel that it's very convenient that another couple came out of the woodwork and bid the same weekend we did!

    I upped our offer to a few thousand shy of the 95% and will see how we go.

    "They're in a chain" what does this mean? Will be interested to see what happens to you?


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    #440
    Naid23
    Registered Users Posts: 1,212 ✭✭✭Naid23


    youcancallmeal wrote: »
    "They're in a chain" what does this mean? Will be interested to see what happens to you?

    Far as i know it means they are trying to sell their own house before buying a new one. So need that sale to go through first.


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    #441
    Sleepy
    Registered Users Posts: 24,149 ✭✭✭✭Sleepy


    youcancallmeal wrote: »
    "They're in a chain" what does this mean? Will be interested to see what happens to you?
    It means they've gone sale agreed on their house. So they need to sell theirs before they can buy the one we're bidding on. The person they're sale agreed with may also be relying on someone else to complete a sale in order to purchase that house and so on and so on...

    In this scenario, any deal falling through takes down all those above it in the chain which is one reason why vendors usually prefer first time buyers, cash buyers or those who have already sold their existing property. It can often influence a vendor to accept a lower offer from a bidder who's not in a chain, particularly if they've already had a deal fall through due to the bidder being unable to sell their property (or sell it at the price they needed to).


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    #442
    Bradz213
    Registered Users Posts: 235 ✭✭Bradz213


    Currently going through the application process at the moment and looking at houses.

    My question is, with new build's are you expected to pay asking price or can you still offer lower?


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    #443
    Sleepy
    Registered Users Posts: 24,149 ✭✭✭✭Sleepy


    You can always offer lower but in this market I'd be surprised if they accepted less than asking tbh.


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    #444
    Taboola
    Closed Accounts Posts: 1,052 ✭✭✭Taboola


    I think I must have the worst luck in the world. The house I want to buy is valued at 120k. It's got a roof but that's pretty much all. It's a shell and needs roughly 180k worth of work. I'm well under the 3.5 times my salary amount.

    I've gone to AIB, KBC and the Credit Union. Not one of them could tell me what I need to get a renovation mortgage.

    Is it common to get plans drawn up for an extension and works before owning the house?


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    #445
    Sleepy
    Registered Users Posts: 24,149 ✭✭✭✭Sleepy


    I'd have thought it was pretty much a given for a renovation mortgage, no?

    I'd try a mortgage broker Taboola, they know the processes of each of the banks and should be able to steer you through.


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    #446
    Taboola
    Closed Accounts Posts: 1,052 ✭✭✭Taboola


    Sleepy wrote: »
    I'd have thought it was pretty much a given for a renovation mortgage, no?

    I'd try a mortgage broker Taboola, they know the processes of each of the banks and should be able to steer you through.

    Yeh I would have thought so as well. What's confusing me is those plans aren't really worth anything unless you've got the planning permission to back them up.


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    #447
    Bradz213
    Registered Users Posts: 235 ✭✭Bradz213


    Another question, which loosely ties in with Taboola. On a new build, if I make some changes/additions using the suppliers lists, do the costs go on top of the house cost and get covered by the mortgage or can i only borrow to cover the standard build and have to pay for any extras myself?


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    #448
    Muff Richardson
    Banned (with Prison Access) Posts: 1,078 ✭✭✭Muff Richardson


    Deja vu...jesus wept. I know this has been running for years but we are now back to these levels of comparison

    http://www.irishtimes.com/life-and-style/homes-and-property/take-5/take-five-for-400-000-1.2584276

    Here's the house in detail if interested.

    http://www.myhome.ie/residential/brochure/burrow-road-portrane-county-dublin/3374494#&ui-state=dialog

    After you've spent your €400k be prepared to spend another €400k to pull it out of the 19th century. Although you could see if the people running those tenement tours as part of the 1916 celebrations and lockout would be interested in adding that house to the tour and make a few quid off it.


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    #449
    tinkerbell
    Registered Users Posts: 6,423 ✭✭✭tinkerbell


    Bradz213 wrote: »
    Another question, which loosely ties in with Taboola. On a new build, if I make some changes/additions using the suppliers lists, do the costs go on top of the house cost and get covered by the mortgage or can i only borrow to cover the standard build and have to pay for any extras myself?

    You'll need to pay for those yourself - they wouldn't be part of the mortgage. Renovation costs are a separate thing entirely and you can get those added to the mortgage if the bank will allow.


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    #450
    dearg lady
    Closed Accounts Posts: 2,091 ✭✭✭dearg lady


    Muff Richardson wrote: »

    http://www.myhome.ie/residential/brochure/burrow-road-portrane-county-dublin/3374494#&ui-state=dialog

    After you've spent your €400k be prepared to spend another €400k to pull it out of the 19th century. Although you could see if the people running those tenement tours as part of the 1916 celebrations and lockout would be interested in adding that house to the tour and make a few quid off it.

    400k for a 4 bed in Portrane?!!! That is insanity


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    #451
    audi12
    Banned (with Prison Access) Posts: 890 ✭✭✭audi12


    Buying houses when the market is falling is not the smartest move in the world you would think.


This discussion has been closed.
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