Signing contract on a new build but loan approval coming up short

M

Mr_Marenghi

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3
Hi guys,

In a position where we have a deposit on a new build and we need to sign this week. It will be ready in August.
KBC have come back with mortgage 10k under what we want. Right now, we do not have this 10k to make up the shortfall.


- If we go with current mortgage offer and sign this week - without the 10k - how long do we have to save the 10k? Just by drawdown? Due to some money coming to us we think we'd have 10k by July.

- When would drawdown on a new build be? When we get the keys in August?

We're also applying to other banks (TSB, nightmare asking for documents again and again over 7wks now) and appealing with KBC, so we may get the full amount, but just wondering as not signing this week means maybe losing the house.


Thanks
 
That is very dangerous.

If you sign and don't have the money to complete the transaction, at best, you will lose your deposit. At worst, they could come after you for further money.

If you don't have mortgage approval, you can't sign.

Brendan
 
Brendan Burgess said:
That is very dangerous.

If you sign and don't have the money to complete the transaction, at best, you will lose your deposit. At worst, they could come after you for further money.

If you don't have mortgage approval, you can't sign.

Brendan
Click to expand...

Thanks, Brendan.

Just to clarify, we have approval, but for 10k less. By July we will have that 10k, house is ready in August (at the earliest).
To even further clarify and simplify this, we have 7k spare now, which is for furnishing, so the shortfall right now today if we were pushed to throw all in is 3k, which if we were in trouble we could borrow from family.


Maybe I'm making this more complicated than it sounds. Let's say then right now we use the 7k, so our shortfall is 3k.

Really I'm asking -

- when do we need the 3k shortfall, by drawdown? Or by signing?
- And when is drawdown on a new build? This house is ready in August at the earliest.
- in the case that the 7k is needed at signing, will our mortgage provider look at our statements and see we have little to no funds to furnish the house (between now and July) and frown upon that?

Thanks
 
OK

When you close the sale and take possession of the house, the seller will want to be paid in full.

So if you can't pay the full amount, then you are in trouble.

If you can pay the full amount but you are unable to furnish it, then that won't matter much.

I don't think that the bank looks to see if the borrower can furnish a house. Many first time buyers borrow furniture from their parents.

Brendan
 
Brendan Burgess said:
OK

When you close the sale and take possession of the house, the seller will want to be paid in full.

So if you can't pay the full amount, then you are in trouble.

If you can pay the full amount but you are unable to furnish it, then that won't matter much.

I don't think that the bank looks to see if the borrower can furnish a house. Many first time buyers borrow furniture from their parents.

Brendan
Click to expand...

Thanks Brendan
 
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