Questions about process of buying a house

[WorstPigeon]

I'm currently thinking of putting in an offer on a house. I have full mortgage approval, though the bank still requires me to get mortgage protection life insurance, which I don't have.

First, when making an offer, if asked for proof of funds, what should I provide? I'm reluctant to show my approval letter, as I don't really want the agent to know what my maximum is (I'd mostly be looking at places a with asking prices a bit under the amount I'm approved for).

Do I need to have a solicitor sorted out before making an offer, or is it okay to leave that until after an offer is accepted?

Finally, do I need the life insurance sorted out now, or is it reasonable to wait until I have an offer accepted? I'm in no huge rush to buy, necessarily, so if the offer doesn't work out, I may end up waiting till next year sometime; I don't really want to be paying for life insurance I otherwise have no use for in the meantime.

 

[trojan]

I'm currently thinking of putting in an offer on a house. I have full mortgage approval, though the bank still requires me to get mortgage protection life insurance, which I don't have.

First, when making an offer, if asked for proof of funds, what should I provide? I'm reluctant to show my approval letter, as I don't really want the agent to know what my maximum is (I'd mostly be looking at places a with asking prices a bit under the amount I'm approved for).

Do I need to have a solicitor sorted out before making an offer, or is it okay to leave that until after an offer is accepted?

Finally, do I need the life insurance sorted out now, or is it reasonable to wait until I have an offer accepted? I'm in no huge rush to buy, necessarily, so if the offer doesn't work out, I may end up waiting till next year sometime; I don't really want to be paying for life insurance I otherwise have no use for in the meantime.

You will need to engage a solicitor so i would suggest you should do it now. Find out what the professional fee will be.

 

[Steven Barrett]

Finally, do I need the life insurance sorted out now, or is it reasonable to wait until I have an offer accepted? I'm in no huge rush to buy, necessarily, so if the offer doesn't work out, I may end up waiting till next year sometime; I don't really want to be paying for life insurance I otherwise have no use for in the meantime.

Depends on your health, age and level of cover. If there's no underwriting required, you can have everything done in a week. If there is underwriting, it could be delayed, especially if the insurance company needs to get medical reports from your GP.

Don't get your life assurance from the bank. They will try to sell you one with all the bells and whistles on it. I've lost count of the amount of people who've come to me paying way over the odds for the life assurance because they bought it off the bank.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)

 

[WorstPigeon]

Don't get your life assurance from the bank. They will try to sell you one with all the bells and whistles on it. I've lost count of the amount of people who've come to me paying way over the odds for the life assurance because they bought it off the bank.

The bank did offer to sell me some back when I got the approval; I said I'd think about it, but kind of assumed it wouldn't be the best deal. Is there anything specific I should be looking for or any minimum standard the banks require? I'm early 30s, in good health with no dependants, so really just need whatever is cheapest and will satisfy the bank.

 

[Steven Barrett]

You want what's called "mortgage protection" cover. It assumes an interest rate of 6% and the level of cover reduces over time, so at the end of the mortgage term, the level of cover is zero. It is the cheapest life cover you can get for a mortgage.

If you are in your 30's and good health, you are looking at a week to get everything done, including the compliance work.

Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)