Bidding on house but short 3 pay checks short for deposit?

[sidb]

I have currently put a bid on a house but are 3 months of getting our deposit together. Is if possible to keep saving while the process is going on and for how long. Do the banks work with you on this. If the seller wants to push things quick (2months) will the bank work with me for the extra month. Going through broker and he said to start bidding on says I should get "x" amount but not confirmed by bank yet. Few more days and find out. Or do we let house go and wait and go again. Its the house we really want!!

 

[moneybox]

Purchasing a house is a huge committment, its not just the deposit, you need funds to pay legal fees, stamp duty then you have mortgage fees, removal fees, house insuramce and possible money for some house maintenance once you move it. you will also need reserve should some you need access to ready cash in the future. Maybe you should wait u ntil you are more financially prepared.

 

[sidb]

We are currently saving 2k a month and paying our current mortgage at the moment. We are going to rent out of apartment and when we get our new mortgage we will have disposable income of 1500 a month so this can accommodate for future expenses. Not rushing into anything but under bidding on any house we look at and it accepted we would like to start the whole process. I would say we should be ok as I can see seller holding off another month or two and if no Highers offers hopefully we should hear back from them. PS some sellers are living in 2004 price ranges and not a hope will I be biting.

 

[Meme80]

Hi Sidb,

As the other poster mentioned just be sure you have the funds. You need cash readily available at various different stages of house purchase.

A booking deposit of sometimes up to 30% of purchase price is required immediately once you go sale agreed. (not usually this high but can be in certain circumstances)

You will need to engage a solicitor as soon as you go sale agreed also and their fees will be thousands. On top of this is stamp duty which again is thousands (1% of purchase price) I wouldnt advise hiring a solicitor if youre not 100% sure you can pay them! at the same time as the solicitors fees are due you will have to pay the remainder of your deposit before you can drawdown the mortgage.

And in between all of this is the valuers fee (roughly €150-€250 depending on area), engineers structural survey fee (roughly €450 - €600 again depending on area may be higher and if any problems show up could be more again), removal company fees, settling all bills from your current house before moving and any painting/decorating/furniture you need.

Do a budget and be sure you have the funds as it can be a stressful time with money being withdrawn from your account left, right and centre. You dont need the stress of not being certain the funds are available on top of that and it is also not fair on the vendor you are buying from and services you engage to help you if you cant complete the sale.

 

[joeysully]

Here is a good list of some of the costs

- Solicitor 2500-3000+
- Engineer report 300-500
- Drain check €150+
- Valuation €150+
- house insurance €300+
- Mortgage protection insurance (€200+)
- Stamp Duty
- An post redirection €50
- 2015 house tax(partial)
- 2016 house tax in full if closing after November
- setting up sky
- setting up internet
- changing car insurance (€40+ each car) + possible insurance hike because new address is greater risk.
- Fuel and time of work for moving (dependent on distance and number of trips)
- or moving company
- Heating Oil/Gas fuel if not on main. possible deposit €200 deposit for some companies.
- Rent if your renting and need some overlap
- Check when the mortgage payment is due, some bank collect on the same day for all customers so you could be due to pay your first mortgage payment before you even move in.