The Buying Process - I Have Some Very Basic Questions

Kintarō Hattori

Hey Folks,

Can someone enlighten me as to what actually happens in the buying process. The good lady and myself have already had an informal meeting with the bank where they informed us how much of a mortage we would likely receive.
We have seen some places we are interested in but obviously we can't put an offer in as we don't have a mortage just yet.

When you go to a bank and get approved for a mortage- what does that actually mean for a potential buyer? Obviously I can look at various places, and if I find something I like I can then go ahead and put an offer in. But how long can I leave things in limbo, how long can I spend looking for a place while I have approval from the bank?

If I tell an agent I'm interested in buying some place what happens? I'm guessing I put a booking deposit down but what happens next? When does an engineer get involved in the process?


We have a deposit saved and we're not looking to buy somewhere fancy, so rather than sitting around mulling things over I suppose we should start the mortage process. We're first time buyers- btw.

ricman

Say you get mortgage approval for 200k, 90 percent mortgage, bank will lend you 180k, offer 160 for house x.OFFER is accepted ,you have to pay deposit ,you need a solicitor, he starts on conveyancing,say 3 months later you sign the papers ,conveyancing finished,you move in.IF YOU LOOK at home x, like it, you can get it surveyed by a professional surveyor.See post above architect or surveyor.SAY make offer subject to survey result= no major faults found,eg dry rot,subsidence etc
you should buy book,or go to library house buying guide ,general finance guide.
i think theres a limited time on mortgage approval ,less than 1 year ,the bank will tell you.Start saving now for deposit and legal fees.
some lawyers have standard legal fees ,google search ireland conveyancing buying a house legal fees.
others charge around 1.5 per cent of house price.SAY house is advertised for 180,offer 150k, ie offer less than advertised price, its a buyers market.
say you have mortgage approval for 200k, that means you can buy a house for 200 ,if you have 20k saved ,plus 3k for legal fees .if home is not new,you could be liable for stamp duty if the price is over x amount.

homes that need modernisation, or renovation are cheaper too .
Bids are unlikely to be accepted unless you have a solicitor to represent you to the estate agent.
see here http://www.citizensinformation.ie/categories/housing/owning-a-home/buying-a-home/stamp_duty says ftb first time buyers pay no stamp duty on new/secondhand home
if its residential, ie you intend to live there.

irlrobins

Your bank should provide you with a guide to buying your first property. It will detail the steps involved and what's required.

Other sources:
http://www.myhome.ie/residential/advice/buying/first-time-buyers/first-time-buyers-guide-1669

http://www.myhome.ie/residential/advice/buying/first-time-buyers/first-time-buyers-guide-1669

http://www.citizensinformation.ie/categories/housing/owning-a-home/buying-a-home/steps-involved-buying-a-home

I wouldn't agree with a few of ricman's points btw, he's wrong on a couple of them.

The approval in principle you have received from the bank gives you an idea of approximately how much the bank is willing to lend you. However this might change by the time you actually go to drawdown the mortgage. So while the bank might give you approval in principle for say €200K, they might only lend you €180K when they make their formal loan offer.

These days the approval in principle probably doesn't last longer than 3 months.

Best advice to give to you is to do some research on the buying process and ask any questions here or with your bank or broker. You can never be too prepared. Market won't improve any time soon so there's no rush. And save save save!

mathepac

irlrobins wrote: »

,,, I wouldn't agree with a few of ricman's points btw, he's wrong on a couple of them. ... You can never be too prepared. Market won't improve any time soon so there's no rush. And save save save!

+1