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The Questions of a First Time Buyer.

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  • 30-06-2010 2:13pm
    #1
    RubyXI
    Registered Users Posts: 1,596 ✭✭✭


    I have some (probably stupid!) questions about buying my first home.

    I have heard that as a basic rule banks will lend approx 4.5 times your salary. So say someone earning €30K would get €135K from the bank. Does this mean the selling price of the property has to be €135K or does it mean they'll give €135K and i can add my own savings, or whatever to buy a more expensive property?

    I also want to ask about private sellers.
    Do i still need solicitors ect the exact same as with auctioneers. What is the difference from the buyers point of view?


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    #2
    not even wrong
    Registered Users Posts: 480 ✭✭not even wrong


    phi3 wrote: »
    So say someone earning €30K would get €135K from the bank. Does this mean the selling price of the property has to be €135K or does it mean they'll give €135K and i can add my own savings, or whatever to buy a more expensive property?
    They will lend you at most 135k, and at most 92% the value of the house.

    That means you will need to supply at least 8% of the purchase price yourself out of your own savings. (You are of course free to borrow less than 92% of the price if you can make the rest up out of your savings. But the bank will insist on 8% up front at least.)

    For example, assuming you only have the minimum 8% savings required, then the bank will lend you €135k, you will put in €11,700 of your savings, that will let you buy a house priced at €146,700.
    I also want to ask about private sellers.
    Do i still need solicitors ect the exact same as with auctioneers. What is the difference from the buyers point of view?
    Yes you still need a solicitor.


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    #3
    ricman
    Closed Accounts Posts: 1,559 ✭✭✭ricman


    You NEED a solicitor to conveyance, do the legal transaction ,transfer of ownership to you, even though you do not get the deeds until the mortgage is paid.Because you got clearance for 135k, that means you can buy up to that amount, maybe you might end up buying a home for 100k or less.AT an auction you may be bidding against 3 people ,theres no limit on what they might bid,auctions are designed to benefit the seller.OR the seller may want a quick sale .


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