Booking deposit paid - what next

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foxylady

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I have paid booking deposit on a new apartment just over a week ago and am in the process of gaining mortgage approval. What do I need to do next and how long does the deposit hold the apartment for?
 
Hi foxylady, im in the same position myself at the mo! ask the estate agent when the contract deposit needs to be paid - its usually 2 - 3 weeks after the booking deposit. This will be a value they decide on up to a max of 10% of the purchase price of the apt. Once this has been paid, the final drawdown is once you move in or its ready. You should start getting quotes from solicitors too!
 
me too foxylady. Does anyone know if the contracts are prompt in coming from the estate agents?
 
ciara_gmail said:
Hi foxylady, im in the same position myself at the mo! ask the estate agent when the contract deposit needs to be paid - its usually 2 - 3 weeks after the booking deposit. This will be a value they decide on up to a max of 10% of the purchase price of the apt. Once this has been paid, the final drawdown is once you move in or its ready. You should start getting quotes from solicitors too!
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Hopefully its more the 3 wk mark as mortgage not approved yet and just over a week a has lapsed.
 
It's variable. Usually you give the EA your booking deposit and give him the name of your solicitor. The vendor's solicitor then send the contracts to your solicitor and the time frame here varies. Once received, your solicitor then has three weeks to return the signed contracts to the vendor's solicitor. Up until the contracts are signed by both parties, either party can pull out of the agreement. In that time you should organise your finance ASAP and also get a structural survey done on the property. This is for your own benefit. You also need to get an evaluation report done for the bank - the banks usually give you the name of a surveyor that's on their panel. When signing the contract, usually the contract deposit of 10% is due and you have to give the solicitor the money for this when signing the contract (it's a bit different if you have 100% finance and get a personal loan for the contract deposit). At the same time you'll also sign the mortgage loan approval and the closing date is agreed. That's the date when your mortgage is being drawn down and you get the keys. For that date you have to have your insurances in place (life and house insurance). This can take sometime, so get onto that soon. You can apply for the insurances and specify the date you want it to start (usually your closing date).
There are lots of solicitors offering fixed rate fees for their services now (excluding outlays, such as stamp duty, etc) and there is a number of mortgage brokers who offer their services coupled with low cost solicitor's fees (such as REA and Primafinance). Insurances - I got the best quotes through www.labrokers.ie or [broken link removed]

All in all, it takes ages for everything, so patience is the one thing you need most! Good luck...
 
Petal said:
It's variable. Usually you give the EA your booking deposit and give him the name of your solicitor. The vendor's solicitor then send the contracts to your solicitor and the time frame here varies. Once received, your solicitor then has three weeks to return the signed contracts to the vendor's solicitor. Up until the contracts are signed by both parties, either party can pull out of the agreement. In that time you should organise your finance ASAP and also get a structural survey done on the property. This is for your own benefit. You also need to get an evaluation report done for the bank - the banks usually give you the name of a surveyor that's on their panel. When signing the contract, usually the contract deposit of 10% is due and you have to give the solicitor the money for this when signing the contract (it's a bit different if you have 100% finance and get a personal loan for the contract deposit). At the same time you'll also sign the mortgage loan approval and the closing date is agreed. That's the date when your mortgage is being drawn down and you get the keys. For that date you have to have your insurances in place (life and house insurance). This can take sometime, so get onto that soon. You can apply for the insurances and specify the date you want it to start (usually your closing date).
There are lots of solicitors offering fixed rate fees for their services now (excluding outlays, such as stamp duty, etc) and there is a number of mortgage brokers who offer their services coupled with low cost solicitor's fees (such as REA and Primafinance). Insurances - I got the best quotes through www.labrokers.ie or [broken link removed]

All in all, it takes ages for everything, so patience is the one thing you need most! Good luck...
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Thanks for all the advice. I cant get a structural survey done because the apt has not been built yet and wont be for another 2 years. I have contacted a solicitor already, so thats not a worry. whats worrying is money is how long it will take to get approval and if the ea will come back in the meantime saying tough we're not holding the apt . Does the vendor wait till hearing from my solicitor before sending contracts or is it the other way round.
 
foxylady said:
Thanks for all the advice. I cant get a structural survey done because the apt has not been built yet and wont be for another 2 years. I have contacted a solicitor already, so thats not a worry. whats worrying is money is how long it will take to get approval and if the ea will come back in the meantime saying tough we're not holding the apt . Does the vendor wait till hearing from my solicitor before sending contracts or is it the other way round.
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Unfortunately, this almost happened to me, but it was due to a VERY imcompetent mortgage broker. The vendor was on the brink of pulling out but thanks to my solicitor hung on for two weeks, when my approval finally came through.

As for the contracts, as far as I'm aware, you give your solicitors name to your Estate Agent who forwards the details to the Vendors solicitor and then the contracts are forwarded to yours.


Edited to amend typo.
 
Esme said:
Unfortunately, this almost happened to me, but it was due to a VERY imcompetent mortgage broker. The vendor was on the brink of pulling out but thanks to my solicitor hung on for two weeks, when my approval finally came through.

As for the contracts, as far as I'm aware, you give your solicitors name to your Estate Agent who forwards the details to the Vendors solicitor and then the contracts are forwarded to yours.


Edited to amend typo.
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Thanks, that puts me at ease a bit because I have given solicitor details to the ea and have just contacted him to see if he's heard anything and he said no news so far, so fingers crossed.
 
hi - was just in the same boat recently, paid deposit & then had to get mortgage approval.... luckily mortgage brokers were a sister company of the estate agent so knew the score. The mortgage took about 10 days to come through, we were originally told 48 hours but it ended up taking much longer, & we had all information to the mortgage broker the day after we put down deposit. The contracts went to the solicitor within a couple of days of paying booking deposit & giving solicitors details. In some cases they are felxible in regards to the time frame, get your solicitor to speak with theirs. If there are appliances involved you should make sure you don't lose these if it goes over the time frame they have given you. I would also suggest that you try a few different banks/mortgage brokers as we are still currently waiting to here back from 1 particular bank ( 5 weeks later!!!!!) they obvisouly didn't get the urgency! We've gone with someone else at this stage, found broker quite good as they are used to dealing with the banks & can speed things up a bit due to their contacts - also, our broker organised the evaluation for us but if your apartment isn't ready yet this probably won't happen until a later stage.

Good luck with the purchase! Its an exiting time!!!!!
 
ash1 said:
hi - was just in the same boat recently, paid deposit & then had to get mortgage approval.... luckily mortgage brokers were a sister company of the estate agent so knew the score. The mortgage took about 10 days to come through, we were originally told 48 hours but it ended up taking much longer, & we had all information to the mortgage broker the day after we put down deposit. The contracts went to the solicitor within a couple of days of paying booking deposit & giving solicitors details. In some cases they are felxible in regards to the time frame, get your solicitor to speak with theirs. If there are appliances involved you should make sure you don't lose these if it goes over the time frame they have given you. I would also suggest that you try a few different banks/mortgage brokers as we are still currently waiting to here back from 1 particular bank ( 5 weeks later!!!!!) they obvisouly didn't get the urgency! We've gone with someone else at this stage, found broker quite good as they are used to dealing with the banks & can speed things up a bit due to their contacts - also, our broker organised the evaluation for us but if your apartment isn't ready yet this probably won't happen until a later stage.

Good luck with the purchase! Its an exiting time!!!!!
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Ea did mention something about getting white goods provided signing within 21 days, which i assume means 21 dys of exchanging contracts, as about 12 days have lapsed since booking deposit put down, and solicitor has heard nothing from the ea since.
 
We are in the same boat. We bought of the plans last October 2005 and it looks like the apt wont be ready until January 2007.

We had approval in principle for a house prior to purchasing the apt. When we went to sign for the new house our solicitor advised us against it because of huge problems with car parking spaces and management company issues.

At the time we had "approval in principle" and were told it would only last 3 months and if it went past that we had to go through the process again.

My question is, if our apartment isnt ready to move into until January are we better holding of getting our mortgage agreed until October or can we get that all sorted now? Our approval is €390k but we have paid €25k of that already. We want to go for 92% mortgage and have the money to settle the difference.
 
I think most mortgage offers have a time limit on them once approved, about 6 months or so, best to inquire about it, and after that time has lapsed you have to re-apply. But the earlier you get it sorted the better, as in the end it takes longer than you'd think. So in your case I'd just ask a couple of banks what their time frame is and then go for it.
 
Petal said:
I think most mortgage offers have a time limit on them once approved, about 6 months or so, best to inquire about it, and after that time has lapsed you have to re-apply. But the earlier you get it sorted the better, as in the end it takes longer than you'd think. So in your case I'd just ask a couple of banks what their time frame is and then go for it.
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I am going through rea and my apt wont be ready for another 2 years. I was told I wont need to reapply until 6- 8 weeks prior to apr being ready.
 
Get your mortgage approval, please shop around for the best rates. get you valuation done on your appartment, so that its worth for the price you're buying

If you need more advice, let me know.

thanks,
Sasi
 
sssasi said:
Get your mortgage approval, please shop around for the best rates. get you valuation done on your appartment, so that its worth for the price you're buying

If you need more advice, let me know.

thanks,
Sasi
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Its gone up to €430,000k... are we going to be in trouble now that we didnt get it valued in October when it was €390,000. Our apt hasnt been built yet but there was a show apt that was 150sft smaller than ours?
 
I assume you've paid a deposit and signed contracts on an agreed price, namely the 390K? In that case it's good news, as the bank will have to lend you less than it's worth and you should even be able to get a better interest rate.
 
Petal said:
I assume you've paid a deposit and signed contracts on an agreed price, namely the 390K? In that case it's good news, as the bank will have to lend you less than it's worth and you should even be able to get a better interest rate.
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Yes we signed contracts and paid €20k 3 weeks after we paid the intial €5k for the agreed price of €390k. .

Thanks for all your advice, you have made my day :D
 
Paid 5000 booking deposit, 100% approval, life insurance in place, waiting to get house insurance, waiting on contracts from vendors solicitor.

Just wondering though, do we get the 5000 booking deposit back if were getting a 100% mortgage?
 
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