Mortgage approval process

Parazard

Registered User
Messages
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Hello all,
I am sure the answer might be out there but I cannot find it.
I have been approaching the banks re: mortgage approval. There has been some variation in their requirements etc but they all seem to only be giving this 'approval in principle' only based on the information I give them and not a thorough review of my paperwork (i.e. the approval is not worth the paper it is written on, particularly given that I am self-employed hence a lot of paperwork would need to be reviewed).
They have been more or less been saying that I should put in for a full application only when I have a specific property in mind and want to bid.
Now...I find this unsettling and confusing as it seems crazy to find a place with the possibility of still being turned down.
Can I submit a full application without having a property in mind?

Any help to try and clarify the process for me would be most welcome!
 
Hello all,
I am sure the answer might be out there but I cannot find it.
I have been approaching the banks re: mortgage approval. There has been some variation in their requirements etc but they all seem to only be giving this 'approval in principle' only based on the information I give them and not a thorough review of my paperwork (i.e. the approval is not worth the paper it is written on, particularly given that I am self-employed hence a lot of paperwork would need to be reviewed).
They have been more or less been saying that I should put in for a full application only when I have a specific property in mind and want to bid.
Now...I find this unsettling and confusing as it seems crazy to find a place with the possibility of still being turned down.
Can I submit a full application without having a property in mind?

Any help to try and clarify the process for me would be most welcome!

No, you will only be able get approval in principle. The approval in principle should be based on the information provided by you so unless something odd turns up, you shouldn't have a problem getting an offer. Banks won't make a full offer until you have specific house that they can value.
 
Thank you Sunny,
just to clarify they are not looking at any of my paperwork at all, just asking me about figures so it is not a 'real' approval in principle where I have submitted all the paperwork and they base their approval on that. They are telling me to find a property and THEN they will process a full application that would result in approval in principle.
 
im guessing it may be possible to select a property to which you are bidding on! but Oh no... you didnt win!! work your figures around that and submit... and then you will have more confirmation on what would be approved....
 
im guessing it may be possible to select a property to which you are bidding on! but Oh no... you didnt win!! work your figures around that and submit... and then you will have more confirmation on what would be approved....

Does it really work this way?! Have other people been doing this? No wonder prices are going up if that's the only way to get a bank to process an application!!!
 
We used our rented houses for the mortgage applications. So you can just pick a house that is for sale that is similar to what you intend to buy and use that for the mortgage application. They don't actually get the house valued until the very end of the process.
If you keep telling the banks you don't have a house in mind yet they won't entertain you because no-one wants to do a lot of admin work for nothing.
 
Parazard

It's a very lengthy process to get mortgage approval. The banks won't go through the time and cost of underwriting an application for someone who doesn't have a property in mind. They all have calculators that can be used to give you an idea of the amount you can get. If you find a house, you can start the ball rolling. As you are self employed, be aware that they will look at earnings over the last 3 years.

Approval in principle will hold for 4 to 6 months, depending on your lender.

Steven
www.bluewaterfp.ie
 
Does having a property in mind mean putting in a bid or saying 'I saw this house and would like to bid on it' or 'I have put down a holding deposit and will need to know within 2 weeks'?

How am I supposed to know if and how much they will actually lend me? There are so many variables at play, particularly because I am self-employed. There has been a difference of about 120k in the amount the various banks I have approached so far are saying they may lend me.
 
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