How accurate are quotations?

M

MeTV

Guest
I'm a first time buyer, pretty much clueless about all matters financial, currently in the process of trying to get myself a mortgage.

After getting a few quotes, EBS offered me the closest to the 92% I need to buy my apartment but were €10000 short (the next closest was AIB who were €25000 short despite me being a customer of theirs for over 11 years) and I was wondering how accurate these initial quotes usually tend to be. If they come back after processing my application and it's only €5000 short, I can probably scrape together the difference or try and haggle the developer down a bit more but, if it's still €10000 short, I reckon I'm scuppered :(
 
Quotations are gudielines only. Especially in this market lenders are assessing on a case by case basis.

A small amount of overtime / bonus can increase the amount you will qulaify for, whereas short term debt could decrease the amount that you will qualify for

You should consider going to a Mortgage Broker who deals with a broad range of lenders, they will know where your particular application should be placed in order to try and achieve approval for the amount you require.

Paul Crewe, http://www.MortgagesDirect.ie
 
Thanks for the reply, Paul.

They didn't take my bonuses, overtime, etc. into consideration when quoting me and I'm completely debt free apart from a rarely used credit card which is paid off every month and I'll be canceling once I've all my furniture, etc. paid for so I'm hoping all that will get me a bit closer to the amount I need. Although, they say they don't need my salary certificate until I'm signing the contract with them (I may have misunderstood there); surely, at that stage, the amount they're giving me can't be changed?

I had a broker friend of mine get me a few quotes and the best of that lot was the AIB one. I'd previously been to see EBS myself under my sister's advice so have gone back to them for now to see what they have to say after processing my application. I could easily get the full 92% with a guarantor but I'm holding back on that as a final, final option.
 
Any lender would want to see a salary certificate prior to sanctioning a mortgage approval,

Once the lender has made a lending decision and granted you a mortgage a loan offer will be issued - This amount cannot change. (Unless you lose your job, take out additional short term debt or do not draw down the funds within the offer expiry date - normally 3 months)
 
Thanks for clarifying that, Paul; guess I must've misunderstood the timing of the salary certificate - not surprising given the amount of information & figures being thrown at me during the meeting ;)

Guess I'll just have to sit tight and wait to see what they come back with next week.
 
Thanks for clarifying that, Paul; guess I must've misunderstood the timing of the salary certificate - not surprising given the amount of information & figures being thrown at me during the meeting ;)

Guess I'll just have to sit tight and wait to see what they come back with next week.

Normal Mortgage general Guidelines:

  • Salary, max 5-6 times
  • Deposit, minimum 8%
  • LTV, max 92%
  • Other loans and Liabilities accounted for
  • Property situated near a town (resale value)
  • Strong Job, minimum 6 months (not on probation, only with TSB), mainly work off min 1 year
  • Credit History
As far as a quote goes from a mortgage company, nothing is guaranteed until you literally have the money in your hand.

I have had cases were a client was approved in principle only for the banks to take away the acceptance.

If the bank think you are a perfect candidate (as per above criteria) you have a better chance of getting the maximum amount they would consider your for.

For the differance you are talking about (5-10k) your overtime may be the game breaker. Most banks will only consider a very small percentage (25% or so) of your overtime or bonus.
 
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