Hi all.
Any of you who had been following my previous thread will know we've been refused from the BOI.
So, currently the situation is my Partner and his Dad have been approved in principle for a 90% Mortgage.
I'm a little confused on exactly what we are getting here and excuse me please if this comes across as a long and dumb post:
They applied for €250000 which has been approved in principle
€230000 is the selling price and the additional €20000 for renovations.
The mortgage is a 90% mortgage, therefore to complete the purchase they've (we) got to source the other 10% elsewhere which is approx. €23000.
Now what I'm confused on is as follows:
The fact that the approval is there for the €250000 - is that the total amount the bank is giving or is it only 90% of the €250000
1. I had hoped it worked in a way that they give us the €20700 up front.
2. We borrow the 10% to finalise the purchase
3. We renovate the house - the Valuer says yes it' worth €250000
4. We then draw down the balance of the €250000 which is €43000
or do we only draw down the €20000 which was used to renovate the house and still have to go looking somewhere else to repay the €23000 (10%).
Basically we need to borrow the full €250000 or it won't work out for us
Can anyone shed any light on this for me please.
Thanks in advance.
Any of you who had been following my previous thread will know we've been refused from the BOI.
So, currently the situation is my Partner and his Dad have been approved in principle for a 90% Mortgage.
I'm a little confused on exactly what we are getting here and excuse me please if this comes across as a long and dumb post:
They applied for €250000 which has been approved in principle
€230000 is the selling price and the additional €20000 for renovations.
The mortgage is a 90% mortgage, therefore to complete the purchase they've (we) got to source the other 10% elsewhere which is approx. €23000.
Now what I'm confused on is as follows:
The fact that the approval is there for the €250000 - is that the total amount the bank is giving or is it only 90% of the €250000
1. I had hoped it worked in a way that they give us the €20700 up front.
2. We borrow the 10% to finalise the purchase
3. We renovate the house - the Valuer says yes it' worth €250000
4. We then draw down the balance of the €250000 which is €43000
or do we only draw down the €20000 which was used to renovate the house and still have to go looking somewhere else to repay the €23000 (10%).
Basically we need to borrow the full €250000 or it won't work out for us
Can anyone shed any light on this for me please.
Thanks in advance.