Mortgage Process

[Chris2014]

Hi

I'm just curious of how the approval process works. Specifically, how you find out how much you can borrow.

When i fill in the online form for a mortgage calculation it says i qualify for a certain amount over, 10, 20, 30 years etc.

If i was approved would they give me all those options and would they tell me the very limit of how much i could borrow or do i need to know how much the seller accepted for the house?

How does this part of the process work?

Thanks

 

[Steven Barrett]

You submit your bank statements, savings records etc. You also submit an application form saying what you are looking for and the term (as much as you will give me is an option). Your application is underwritten and they tell you how much they will give you.

Most people go for the longest term possible as it is easier to get the mortgage as the repayments are lower. They always have the option of overpaying or putting in lump sums. Shorter term means you are committed to paying a larger amount for the term.

If you want to get an exemption from the Central Bank restrictions, you must have identified the property you want to buy before applying.

Steven
www.bluewaterfp.ie

 

[Chris2014]

Ok thanks.

So they tell you exactly the max you have been approved for so you can shop around without knowing exactly what property you would like to buy and i should go for as long as possible to leave my options open on repayments.

 

[toby2111]

If you want to get an exemption from the Central Bank restrictions, you must have identified the property you want to buy before applying.

What should you do if you want an exemption but don't have a property identified?

 

[PGF2016]

What should you do if you want an exemption but don't have a property identified?

Tell the bank. It's at their discretion as to whether the give you the exemption or not.

When i fill in the online form for a mortgage calculation it says i qualify for a certain amount over, 10, 20, 30 years etc.

They're a rough guide only. In person I was told I'd get a multiple of what the calculator said.