Paying off loan before cheque draw down

I have recently paid deposit of €1,000 on a new home. I have gotten mortgage approval from Permanent TSB but a condition of this is to pay off an existing loan of €1,000 which was listed with ICB. I signed my contract and paid the contract deposit last week. Unfortunately, due to circumstances, I have gotten another loan of €1,000.

My house is to be ready in May, so my cheque won't be drawn down until then but my broker says they will only be looking for a letter from the lender saying this loan is now cleared.

Will they find out about the other one? Do they ask for statements when its time to drawn down cheque?

Appreciate you're help, I'm a bit worried.

Who is the other loan with? Here are the members of the ICB [broken link removed]

GE Money, they are on that list.

Just wondering do they look for bank statements again?

Esme said:

GE Money, they are on that list.

Just wondering do they look for bank statements again?

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If you have received full loan approval and your offer letter has been sent to your solicitor then I doubt very much if they will be looking for more statements.

Hello there,

I am in same situation. EBS has put a condition to clear off the existing loan with my Bank prior the mortgage cheque is issued. My solicitor and mortgage broker is asking me to take another loan to clear the existing loan. Will EBS do credit check once again before issuing the cheque to me? My broker says they wont do it once again as they have already done that and given mortgage approval. Is it true?

Regards,

Pint 6

Esme and Pint6,

if you are closing in the next while ie in the next 8 to 10 weeks then it is not likely that the mortgage lender will do another bureau check before cheque issue, however if you are not closing for another 6 months to 12 months ie waiting on a new build then yes it is likely that the lender will do another bureau check before releasing the funds. however theres no guarantee that the wont do another bureau check even if you are closing shortly but highly unlikely.

I spoke to my mortgage broker this morning and he said that they will just look for a letter from the lender saying this loan is now cleared and they won't ask for more statements.

So hope that helps.....Helps me anyway, lol

demoivre said:

If you have received full loan approval and your offer letter has been sent to your solicitor then I doubt very much if they will be looking for more statements.

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Yes, I received full loan approval and contract is also now signed.

Even we have paid about 16000 Euros(non-refundable) deposit. I will be clearing off the loan in a day or two. I am just worried if they do the credit check once again, do you think they will do the check? I am just worried because, what if they ask how you cleared the loan?

PInt6

I've spoken to another mortgage broker and have been told that no, once you have mortgage approval, they have seen everything and they won't want anymore, so I doubt that they will do another credit check? Gosh, i hope not!

How can they ask you to clear the loans once they have approved you for the mortgage? I am a bit worried, as we are waiting on contracts to close a sale and no way we can't afford to cancel our car loans.

Well I had a car loan of €10,000 so my mortgage broker asked me to get a loan from credit union to clear that, which I did and sent the letter to the mortgage lender. The mortgage lender does not know about the credit union. I still have an outstanding one of €1000 that they know about which I must clear before the cheque is drawn down. Basically, the cheque will only be drawn down once they know that the loan is paid, its a condition of the loan.

pint6 said:

Even we have paid about 16000 Euros(non-refundable) deposit. I will be clearing off the loan in a day or two. I am just worried if they do the credit check once again, do you think they will do the check? I am just worried because, what if they ask how you cleared the loan?

PInt6

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Pint6, did you sort this out??

Ditto to that! I'm hoping the same, but have been assured by most people that it won't happen. I intend paying it off anyway, when the mortgage is drawn down and plan to rent a room under the rent a room scheme.

My little house was only €145,000.

Where did you get the second loan?

Hello ESME,

Your reply : Ditto to that! I'm hoping the same, but have been assured by most people that it won't happen. I intend paying it off anyway, when the mortgage is drawn down and plan to rent a room under the rent a room scheme.

What exactly you mean by that? do you mean that lender does the credit check or not?


Pleae advise,

Pint6

When I say, that it won't happen, I mean that they will NOT do a further credit check.