Saving both a contract and loan deposit?

mrmanire

I m unsure if this has been discussed here before but I m unsure of one part of the house buying process. I am aware that I must pay a deposit to the estate agent and once contracts are ready to be signed, increase this deposit up to 10% of the purchase price. The funds are then drawn down from the bank to pay the remaining 90%.
On a 220k property for example, does this mean that I need to have 22k of a deposit ready to place with the solicitor and also another 22k for the bank to secure the finance?

Very confused and worried so any clarification would be helpful. Thanks!

davo10

mrmanire wrote: »

I m unsure if this has been discussed here before but I m unsure of one part of the house buying process. I am aware that I must pay a deposit to the estate agent and once contracts are ready to be signed, increase this deposit up to 10% of the purchase price. The funds are then drawn down from the bank to pay the remaining 90%.
On a 220k property for example, does this mean that I need to have 22k of a deposit ready to place with the solicitor and also another 22k for the bank to secure the finance?

Very confused and worried so any clarification would be helpful. Thanks!

Central Bank rules mean that you must have €44k (20%) of purchase price yourself to pay toward the house purchase, the bank will lend the rest of mortgage is approved.

Typically you pay €5-10k to auctioneer when bid is accepted and the balance to bring it up to 10% of purchase price when contracts are signed. The outstanding 90% is payable on the purchase "closing".

Mike3549

mrmanire wrote: »

I m unsure if this has been discussed here before but I m unsure of one part of the house buying process. I am aware that I must pay a deposit to the estate agent and once contracts are ready to be signed, increase this deposit up to 10% of the purchase price. The funds are then drawn down from the bank to pay the remaining 90%.
On a 220k property for example, does this mean that I need to have 22k of a deposit ready to place with the solicitor and also another 22k for the bank to secure the finance?

Very confused and worried so any clarification would be helpful. Thanks!

no only 22k plus solicitor and stamp duty charges.
you usually pay 5k to estate agent, then 10% less 5k on signing the contracts (17k in your case) and then solicitor will do the work with the bank.

Sarn

davo10 wrote: »

Central Bank rules mean that you must have €44k (20%) of purchase price yourself to pay toward the house purchase, the bank will lend the rest of mortgage is approved.

Only if you are a second time buyer. It is 20% for the difference over €220k for a first time buyer.

Mike3549

mrmanire wrote: »

I m unsure if this has been discussed here before but I m unsure of one part of the house buying process. I am aware that I must pay a deposit to the estate agent and once contracts are ready to be signed, increase this deposit up to 10% of the purchase price. The funds are then drawn down from the bank to pay the remaining 90%.
On a 220k property for example, does this mean that I need to have 22k of a deposit ready to place with the solicitor and also another 22k for the bank to secure the finance?

Very confused and worried so any clarification would be helpful. Thanks!

no only 22k plus solicitor and stamp duty charges.
you usually pay 5k to estate agent, then 10% less 5k on signing the contracts (17k in your case) and then solicitor will do the work with the bank.

Edit: i assume you are a ftb

davo10

Sarn wrote: »

Only if you are a second time buyer. It is 20% for the difference over €220k for a first time buyer.

As the op posted a total of €44k (20%), I assumed this was not the first purchase.

Mike3549

davo10 wrote: »

As the op posted a total of €44k (20%), I assumed this was not the first purchase.

yeah, but also posted 90% mortgage.

OP are you FTB or not?

mrmanire

I'm a FTB buyer. I'm actually buying a house for 250k+ and I have the deposit saved.

From what I read above; if I for example need a 30k deposit for the loan but place 15k on deposit with solicitor - the solicitor will arrange to pay remaining 15k to the bank so as to draw down the mortgage.

Thanks for the help. I think the above clarifies!

Mike3549

mrmanire wrote: »

I'm a FTB buyer. I'm actually buying a house for 250k+ and I have the deposit saved.

From what I read above; if I for example need a 30k deposit for the loan but place 15k on deposit with solicitor - the solicitor will arrange to pay remaining 15k to the bank so as to draw down the mortgage.

Thanks for the help. I think the above clarifies!

i got my place with 10% deposit so i might be wrong, but i think if you pay 10% on signing the contracts, then you will pay the remainder together with stamp duty and other charges on the day of closing.

Yourmama

You don't pay any money to the bank. It's the bank who lends YOU money! You pay a deposit i.e. 5k to auctioneer, then 10% - 5k to solicitor. Solicitor then draws down the mortgage and pays the lump to vendor. You also need to pay the solicitor for the extras like his fees, stamp duty, lpt for remainder of the year

Lockedout2

FTB needs 10% up to €220k and 20% over €220k so you will need €28k for the deposit on the House.

You will pay around €5k to the auctioneer as a booking deposit.

You will pay the balance of your money to your solicitor €25k who will pay the contract deposit say €20k they will then draw down the loan from the bank and pass the proceeds onto the vendor. The solicitor will keep the other €2k for their fees.

mrmanire

Thanks a million for the advice everyone. You've cleared my mind on that issue. Much appreciated!

Baby01032012

Lockedout2 wrote: »

FTB needs 10% up to €220k and 20% over €220k so you will need €28k for the deposit on the House.

You will pay around €5k to the auctioneer as a booking deposit.

You will pay the balance of your money to your solicitor €25k who will pay the contract deposit say €20k they will then draw down the loan from the bank and pass the proceeds onto the vendor. The solicitor will keep the other €2k for their fees.

Balance of 10% plus solicitors fee plus proportion of LPT plus proportion of management fee if prepaid for the year ( only where buying apartment) plus stamp duty all above to be paid to
Solicitor on completion. He takes his fee and pays balance to vendors solicitor along with the mortgage drawn down amount.
Your not paying anything to bank just to be clear, they wouldn't have approved you if they weren't satisfied you had the 10% plus.