Chances of loan approval?

Myself and my partner are awaiting loan approval and are on tender hooks as to whether we will qualify or not. The consultant gave us absolutely no indication whatsoever about whether things look good or bad for us! She has had all our details for a week now and is simply waiting on a final bank statement. Has anyone got any idea how we will go?
both permanent, both paying no rent (living at home) savings of 18,000 between us, no credit cards, no car loans, no outstanding loans....

surely this lady cant reject us, although we are preparing ourselves having read some of the threads on this site!

advice?

Impossible to comment – you haven’t told us how much you earn, how much of a mortgage you are seeking or the purchase price of the property.
My advice would be to provide the statement(s) required so you can get a decision on your application....

property costing 290k..combined salary of 63,000..mortgage calculator online is throwing up a ridiculous fiqure of 350,000 limit...

If the purchase price is 290K then the max you can borrow is 92% (although some banks would offer lower precentages). You'll need to raise the 8% deposit yourself. That's 23.2K. So before you add the costs of legal fees, valuations, etc you're short. I think the bank will look for more substantial savings in order for you to buy at 290K.

have non refundable gift of 6000 from both our parents to make up the rest...bank is aware of this...

Ok so you have the 8% deposit. But sounds like you don't have any money to cover any additional outgoings. I think it might come down to your savings track record, i.e. can you prove that for the past months that you managed to save an amount each month that was over and above what your monthly interest repayments would be (taking into account potential change in interest rates).

a solicitor will cost you about € 2K, surveyor and valuator about € 600, add expenses for furniture, life assurance, additional bills, if you are not buying near where you live, change in commuting costs, unexpected repairs - if you really aim at the region of € 290 K, try waiting for some time and save more or downsize and select a property which you can afford while allowing for some buffer ... even if the bank would let you borrow this amount of money it looks like you are seriously overstretching yourselves ...

have saved that money since October of last year..surely thats bloody good proof i can save! absolutely no serious outgoings at all.. i have bid on a house and am worried now I will be rejected? how foolish am I??

am beginning to feel the stress

That's a good rate of saving, but I still feel your total amount saved is too low.

If I was the bank I wouldn't lend you the 92% you need as you still wouldn't have any money to cover fees or even buy a bed for the place.

but im a teacher! safe as houses! earning enough to buy a bed!!!
haha thanks for the advice..im not holding my breath now for a call saying im accepted! back to the drawing board with me

In a broader sense, nobody is really as safe as houses given the current fiscal situation, Missus. Have you as a minimum considered that a further reduction in real net income may be on the cards following Budget 09?

In any case, have you also considered holding off purchasing until you have saved a greater portion of your costs? As an incentive, house prices are continuing on a downward curve.

You sound like you are in a very big hurry. People in a hurry sometimes pay too much for things.
The Autumn selling season has not begun yet. Usually more people put their houses up for sale beginning in Sept, and those who have not sold all year drop their prices to compete. So Sept and Oct traditionally offer more choice to the buyer.
Why not withdraw your offer and wait until you have the loan approval in your pocket.

Doozie said:

In a broader sense, nobody is really as safe as houses given the current fiscal situation, Missus. Have you as a minimum considered that a further reduction in real net income may be on the cards following Budget 09?

In any case, have you also considered holding off purchasing until you have saved a greater portion of your costs? As an incentive, house prices are continuing on a downward curve.

Click to expand...

I wouldn't be surprised if salaries across the public sector were to be cut by 20% this budget.......How would you cope with this?

fair enough so..thanks for all the advice.. will stay put for now...

TheBigD said:

That's a good rate of saving, but I still feel your total amount saved is too low.

If I was the bank I wouldn't lend you the 92% you need as you still wouldn't have any money to cover fees or even buy a bed for the place.

Click to expand...

im just wondering now whether its a banks business how or with what, u furnish ur house..as long as u can make the repayments, surely I cud sleep on a blowup bed for all they care or know...they can hardly expect for u to have a massive lump sum (on top of the huge deposit) to decorate ur house when u can do that as u go..... give me a break please! or am i simply naive?

If you plan on buying a house and move into it with nothing but a blow up bed then you're living beyond your means. Why put yourself through that hardship??

Any bank would see that you're barely scraping enough cash together to purchase the house. They'd raise questions as to how you would pay for other fees, life insurance, home insurance etc. They won't give you the loan without these in place.

I understand how desparate you are to get your own place. I was in teh same position until this summer. But to blindly go ahead with this purchase when all advice is not to, is madness!

awwww come on.....whats with all the negativity!!! hope to prove u wrong!! thanks all the same...

Some people call it negativity, some call it sense!

missus09 said:

im just wondering now whether its a banks business how or with what, u furnish ur house..as long as u can make the repayments, surely I cud sleep on a blowup bed for all they care or know...they can hardly expect for u to have a massive lump sum (on top of the huge deposit) to decorate ur house when u can do that as u go..... give me a break please! or am i simply naive?

Click to expand...

My first bed was a mattress on the floor, my other half moved into the garage and we rented out the house for summer lets and I moved in with a parent to do summer work. Nothing wrong with a blowup bed, you have more sense than most. It's the one's that put the fully kitted out house on the credit card that are naive. A teacher is a good bet for a bank.

Just make sure you have done your figures correctly, that you can take a hit in wages (I do believe this is coming) and that you know how much it costs to run a house. Best of luck.

missus09 said:

awwww come on.....whats with all the negativity!!! hope to prove u wrong!! thanks all the same...

Click to expand...

Secure employment - tick
Good savings record - 18k in less than a year - tick
No loans - tick
Mortgage will be less than 4.5 times joint income - tick

You should obtain approval on those figures.
Good luck with it missus09 with whatever you decide to do.


www.moneybackmortgages.ie