Got Mortgage Approval today

Stacksey

So i got mortgage approval today for €210,000 from BOI(first time buyer), i have no where in mind at the moment but people keep telling me wait til a few months after xmas, i was going to look into getting an apartment but dont know about this anymore because a) who knows who will be living in your apartment block and b) those bloody maintenance fees are a joke

i have done a search for houses in north dublin and the lowest seems to be in an around the €240,000 mark, do ya think people will sell for €210,000, sorry im new to this

gurramok

Whats it worth to you?

Don't rush in, do some research. If you feel they are worth 210k to you, then offer it. They can only accept or reject. 240k is the lowest house price in a safe area in Dublin. For me, they are not even worth 240k, more like 150k.

Mind you, your friends are correct and you are correct on apts.

the_syco

Stacksey wrote: »

i have done a search for houses in north dublin and the lowest seems to be in an around the €240,000 mark, do ya think people will sell for €210,000, sorry im new to this

Aye, seen a few houses in and around Swords for that amount. They'll fall in price, as they have been falling in price for the past while, abeilt slowly. I'd check out teh different estates, how close they are to the shops, etc, and see if they'll accept €200,000?

seamus

One thing to keep in mind is that you got mortgage approval for €210,000, but that doesn't mean you have to or should use that all up.

At this stage in the game, you're looking for a property that you'll hold onto for at least five years, preferably something you'll hold onto for at least ten. A lot changes in ten years - You don't want to buy a 3-bed apartment now and find yourself in ten years time married with two kids (even if you're single now, this is still a distinct possibility) and going crazy because you've no room.

I would advise going for something with 3 bedrooms at a minimum and a back garden. Don't be afraid to take at least 10% off the asking. If the agent tells you that the offer is too low or there's another higher offer on the place, then move on - there are plenty of other places to look at, and if the agent was bluffing, you'll get a phone call. Win-win for you.

There are literally thousands of apartments sitting unsold in Dublin at the moment (Dublin North is awash with them) and it's going to be years before the apartment stock can be sold off. Homes with their own front/back doors and especially those with gardens aren't quite as plentiful and we're entering a period of baby booms meaning that recession or not, the demand for proper homes with more room is going to go up in the next 2 - 10 years.

Oliver1985

I also got approved for 210k last week!!! Its a buyers market ill be throwing in well low offers

heebusjeebus

Play it cool lads. I got approved for a crazy 340,000 but I took my time and finally settled on a place for 226,000. The difference in repayments between 226 and 340 is staggering.

Theboinkmaster

heebusjeebus wrote: »

Play it cool lads. I got approved for a crazy 340,000 but I took my time and finally settled on a place for 226,000. The difference in repayments between 226 and 340 is staggering.

Yes and especially since interest rates will rise over the coming years - they could well be triple or quadrouple what they are now, in say 5 years time

Stacksey

Thanks lads, i realise now that i have approval i can kind of sit back and take a look around and in the mean time keep saving and living at home with the parents makes the saving a little easier,

Theboinkmaster

Stacksey wrote: »

Thanks lads, i realise now that i have approval i can kind of sit back and take a look around and in the mean time keep saving and living at home with the parents makes the saving a little easier,

Good call - remember every month you wait you:

1) save more of a deposit
2) your target property will likely decline in value

che81

Well done on getting your approval. I got mine last week for 220,000 (first time buyer couple with one wage, with EBS), and didn't play it very cool as we had a house in mind for a while and had been looking before we got approval from the bank.

We looked at houses all around Dublin online, and then viewed in Crumlin, Drimnagh, Kimmage and Ballyfermot. Altogether viewed 22 houses (mostly ex-corporation from the 40s and 50s) and they ranged in prices from 160k for 2 bed terraced in need of work to 250k for 3 bed walk in condition.

We ended up buying in a nice part of Ballyfermot down towards the N4 turn off, Inchicore end. Asking price of 210k which we got accepted at 197k. House is in walk in condition with huge garden. I think definitely take your time to look around, as houses are not shifting too readily and you can drive the bargain harder if you know they've been trying to sell for a long time.

I really think this is the time to pick up a house, and not an apartment in my opinion. It's not nice for the developers, but like another poster said, you're going to be living there for a good few years as it's going to be very hard to sell on in the next couple years.

Oliver1985

Just as a matter of interest how long does an approval last for?

heebusjeebus

I think its 6 months but it's dependent on the institution.

seamus

Stacksey wrote: »

Thanks lads, i realise now that i have approval i can kind of sit back and take a look around and in the mean time keep saving and living at home with the parents makes the saving a little easier,

If you don't already know, find out how long the approval lasts for.

The time from acceptance of your offer to drawing down the mortgage is usually 6 - 8 weeks (unless the buyer is eager for a very quick sale in which case it can be done in a couple of weeks*), so bear that in mind. You have to draw down the mortgage (i.e. complete the sale and own the house) within the approval period. The last thing you want is to have contracts signed, ready for drawdown only to discover that your approval has expired and you've to hurridly jump through the hoops all over again.

I'm not trying to rush you or panic you, but if you're intent on buying, you should be on the lookout fairly constantly as opposed to waiting 4 months and then going house-hunting.

* People will tell you stories of completing a sale in less than a week, but these are very special circumstances and definitely not the norm. Factor in a minimum of 6 weeks for the paperwork to be completed

BC

Stacksey wrote: »

i was going to look into getting an apartment but dont know about this anymore because a) who knows who will be living in your apartment block and b) those bloody maintenance fees are a joke

i agree that a house is usually the better option (mainly for space) but bear in mind that you don't know who is living in your housing estate either. At least in an apartment you have some way of tackling issues. Also maintenance fees are usually only a joke in a badly run management company or one that is not fully completed (granted this is often the case). Many housing estates have maintenance fees also so look out for that.

jimoc

also one point to note is, that wherever you are going to buy, go there this week and see how wet it is there, if its underwater or close to it now, stay well clear.

My own personal recommendation would be to buy somewhere at least 50 feet above sea level on the side of a hill

the_syco

jimoc wrote: »

also one point to note is, that wherever you are going to buy, go there this week and see how wet it is there, if its underwater or close to it now, stay well clear.

Yes. I can see LOTS of VERY F**KING cheap houses coming into the market in a year or two, when they dry out...

none

Oliver1985 wrote: »

Just as a matter of interest how long does an approval last for?

Yes, I'm also curious. In mine, there's aomething about 30 days acceptance term and from talking to the Mortgage person I'm dealing with, I was also told I need to make a decision within one month.

none

the_syco wrote: »

Yes. I can see LOTS of VERY F**KING cheap houses coming into the market in a year or two, when they dry out...

That's one of the reasons I prefer apartments

iguana

none wrote: »

That's one of the reasons I prefer apartments

So that you can live Rapunzel style in your very own island tower?

A 2nd storey+ apartment still becomes unlivable if the groundfloor is flooded. Your stuff won't be in danger but if you can't get in or out your apartment is worthless.

seamus

none wrote: »

Yes, I'm also curious. In mine, there's aomething about 30 days acceptance term and from talking to the Mortgage person I'm dealing with, I was also told I need to make a decision within one month.

That's for the approval in principle. It's effectively an offer of a mortgage, which is subject to approval. When you accept the offer, you will then get your full approval (barring anything serious coming to light) and that will be valid for 6 months or so.

icescreamqueen

Stacksey wrote: »

So i got mortgage approval today for €210,000 from BOI(first time buyer), i have no where in mind at the moment but people keep telling me wait til a few months after xmas, i was going to look into getting an apartment but dont know about this anymore because a) who knows who will be living in your apartment block and b) those bloody maintenance fees are a joke

i have done a search for houses in north dublin and the lowest seems to be in an around the €240,000 mark, do ya think people will sell for €210,000, sorry im new to this

Could I be nosy and ask what kind of salary you're on? I'm trying to get a mortgage approval on my own but I need about 250k to buy the house but that would include an 8% deposit. I'm just wondering if I'd get anywhere near that. I'm 23 and earn about 40k.

fletch

FYI - AIB approval in principle last 3 months

Stacksey

icescreamqueen wrote: »

Could I be nosy and ask what kind of salary you're on? I'm trying to get a mortgage approval on my own but I need about 250k to buy the house but that would include an 8% deposit. I'm just wondering if I'd get anywhere near that. I'm 23 and earn about 40k.

I am on 40K and work in public service and i'm 27, your on very good money for your age

Senna

icescreamqueen wrote: »

I need about 250k to buy the house but that would include an 8% deposit.

Maybe its just they way i'm reading that, but you do know that you have to have the 8% deposit in cash already.


As far as i know, and unless things have changed in the last few months which i doubt, all approvals are approval in principle. When you actually decide on a house and apply for the mortgage your details will be submitted to head office again and can be rejected even if your circumstances have not changed.
Approval in principle should be taken as a guide to how much you might be offered, you should then begin the search for a house, but be prepared to have you paperwork scrutinized again.

Also, i hope banks are more realistic with AIP now, a few months back i got AIP for 375k, but realistically i would only be able to pay a mortgage half that size comfortably. If people are getting AIP for 210k and buying houses for 200k, will they be able to make repayments when interest rates are 5-65?

jeepers101

Oliver1985 wrote: »

Just as a matter of interest how long does an approval last for?

Assuming its AIP you've got, then its not set in stone. We had AIP from a couple of banks but when it came to the crunch they wouldn't budge.

icescreamqueen

Senna wrote: »

Maybe its just they way i'm reading that, but you do know that you have to have the 8% deposit in cash already.


As far as i know, and unless things have changed in the last few months which i doubt, all approvals are approval in principle. When you actually decide on a house and apply for the mortgage your details will be submitted to head office again and can be rejected even if your circumstances have not changed.
Approval in principle should be taken as a guide to how much you might be offered, you should then begin the search for a house, but be prepared to have you paperwork scrutinized again.

Also, i hope banks are more realistic with AIP now, a few months back i got AIP for 375k, but realistically i would only be able to pay a mortgage half that size comfortably. If people are getting AIP for 210k and buying houses for 200k, will they be able to make repayments when interest rates are 5-65?

Yeah I understand that you have to have 8% of a cash deposit. I will have that shortly, hopefully. So, realistically I need a mortgage of 230k but I'm not sure if I'll get that. I have a good savings history but they might hold my age against me?

Senna

icescreamqueen wrote: »

Yeah I understand that you have to have 8% of a cash deposit. I will have that shortly, hopefully. So, realistically I need a mortgage of 230k but I'm not sure if I'll get that. I have a good savings history but they might hold my age against me?

Your age wont go against you from the banks point of view. As long as your job is permanent/stable, and you have been in full employment for at least a year, or more. But you're 23 and you want a mortgage on your own?? WHY??

A mortgage is nothing more than a millstone around your neck, people should really only take on a mortgage if there at that stage of life were they need the stability. Renting is the best thing for a 23 yr old, it gives you the option of moving to where better jobs are and then settling down when you know they sort of house you need.

Anyway, you're looking for 230k on an income of 40k, i cant see any bank giving you that, when interest rates go back to a normal level your repayments would be nearly 50% of your income. In a few years time you will thank that bank for not giving you a mortgage now, stay renting, keep saving, enjoy yourself and only buy when you NEED a house.

Firetrap

OP, I'm not being smart/troll here but do you know if the bank took into account the haircut that your public sector earnings are going to take in the coming months?

AARRRGH

Senna wrote: »

A mortgage is nothing more than a millstone around your neck, people should really only take on a mortgage if there at that stage of life were they need the stability. Renting is the best thing for a 23 yr old, it gives you the option of moving to where better jobs are and then settling down when you know they sort of house you need.

I agree completely.

You'd be mad to buy a house at 23 in a country which is going to be ****ed for decades.

Rent, travel, enjoy life. Get a mortgage when you're older and ready to be trapped in full-time employment in Ireland for 25 years.

Stacksey

Firetrap wrote: »

OP, I'm not being smart/troll here but do you know if the bank took into account the haircut that your public sector earnings are going to take in the coming months?

i actually thought about this alright, was quiet suprised to get the mortgage approval so quickley, i'm really in 2 minds now whether to go ahead and start looking for a place to buy, renting is the new buying, at least if i rent and the country gets worse and more and more pay cuts happen i can just pack the bags and jump on a singapore airlines to oz, i am only 27 at the end of the day and single

AARRRGH

Stacksey wrote: »

i actually thought about this alright, was quiet suprised to get the mortgage approval so quickley, i'm really in 2 minds now whether to go ahead and start looking for a place to buy, renting is the new buying, at least if i rent and the country gets worse and more and more pay cuts happen i can just pack the bags and jump on a singapore airlines to oz, i am only 27 at the end of the day and single

Your pay is definitely going to be cut, and the country is definitely going to get worse. Also if you buy now you will definitely be in negative equity immediately.

I would wait if I were you...