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Buying my first house

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  • 13-03-2012 1:27pm
    #1
    stered
    Registered Users Posts: 7 ✭


    I've some VERY basic questions that I don't know the answers to!
    This is probably obvious to everyone but me being a first timer I don't actually know the answers. Any help is greatly appreciated..:)

    Firstly and most importantly, I've a mortgage approved for 250k and savings of 50k. Does this effectively mean I can bid 300k for a house or am I limited to a bid of 250k?

    2nd Question. Regarding the deposit, do you get that back? For example if you put down a deposit of 10k, is that returned or is it swallowed up by the bank as part of a mortgage payment?

    Thanks for any help forthcoming...


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    #2
    lempsipmax
    Closed Accounts Posts: 311 ✭✭lempsipmax


    You can bid up to 300k.

    Your deposit is paid to the vendor and not the bank. If you buy a 300k house having paid a 10k deposit (to the vendor), if/when you purchase the house you need to give the vendor 290k. 40k of which comes from your savings and 250k which come from your mortgage lender.

    Can I recommend that you have a look at this thread on askaboutmoney.com which might have answers to questions you may or may not have thought to ask.


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    #3
    stered
    Registered Users Posts: 7 ✭stered


    Thought as much lemsip, thanks.

    So if I've 50k should I just offer 10k as a deposit or would offering 50k once the house is sale agreed work in my favour. Should i tell the estate agent how much I have once we've agreed on price?


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    #4
    killers1
    Registered Users Posts: 1,443 ✭✭✭killers1


    stered wrote: »
    Thought as much lemsip, thanks.

    So if I've 50k should I just offer 10k as a deposit or would offering 50k once the house is sale agreed work in my favour. Should i tell the estate agent how much I have once we've agreed on price?

    Doesn't work in your favour and will make no difference. When you are bidding on a property its based on the purchase price you are willing to pay and presumes you have sufficient funds to complete the purchase. If your offer is accepted you pay a booking deposit of anywhere between 3-10k usually. On signing the contracts you pay the balance of 10%. If you have savings over and above this you can decide whether to reduce the amount of the mortgage required by using your savings or else take the mortgage amount on offer and retain some of your savings depending on the eventual purchase price if the property. E.g you buy for 280k, bank will give you €250k but you have €50k savings. You can either take the €250k and keep €20k of your savings or reduce the loan amount to €230k and put all your savings towards the purchase price.


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    #5
    Diddler1977
    Registered Users Posts: 3,765 ✭✭✭Diddler1977


    You may want to set aside some of the 50k for other expenses you will incur

    Solicitors Fees
    Surveyors fees
    Furnishing house
    etc.


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    #6
    stered
    Registered Users Posts: 7 ✭stered


    Thanks guys, I'm saving at the moment and have about 55k in total. Was willing to put 50k of that down and have between 5-10k for solicitors, furnishings, stamp duty etc.

    I will most likely be taking the full 250k on offer from the bank as I'll most likely need it going by the houses I'm looking at.


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