another 100% deposit question

We are first time buyers so apoligies if this is a basic query
Our bank contacted us today to say our solicitor would have the paperwork confirming our loan offer / mortgage tommorow and would then need to request the drawdown of our deposit. On contacting our solictior he seemed to think this was out of the ordinary and thought the bank should just pay the deposit. We then had to contact the bank who confirmed this was how to proceed and then back to the solicitor who said he would have to see the paperwork tommorow . The impression we are left with is that the solicitor does not normally have anything to do with the deposit ?? We are just very anxious now as would hope to have deposit to EA next week.

is this the booking deposit ?
i got 100% mortgage but paid the booking deposit myself and then applied for 100% and when you draw down the mortgage, the bank will send the cheque (for 100% purchase price) to your solicitor and they will cash the cheque, pay the proceeds of sale and then return whatever is left to you.

for the contract deposit (8% or whatever) you will have to get a term loan from the bank as you will be paying this weeks before you actually close your deal. when your solicitor gets the 100% cheque, they will then pay back the term loan (plus interest!)

speak to your bank about it

Yes it is the booking deposit, the bank have told us they will pay this, ie when we sign loan agreement this amount will be drawn down first via solicitor to EA. Hoping to see solicitor tommorow but there seems to be a lot of confusion re 100% mortgage.

yeah the banks really don't explain things clearly.
we originally were going to borrow the 10% contract deposit but when we got around to needing it, the bank produced a whole set of new forms for a separate loan (which would take days to process). in the end we needed the money quickly so we borrowed money from family and paid them back when we got our 100% cheque.

I have to say I have found the banks service is excellent, our solicitor just seems unsure about the paying of booking deposit , hopefully with arrival of loan contract tommorow it will help.

can i get this straight... the booking deposite when you go sale agreed on a property is usually about 5k (obviously depending onthe price of the property). Is this given to the EA in cash or does your solicitor hand it over on your behalf?
Once this money is handed over you then get all your paperwork in place re. mortage and then when you accept your mortage your solicitor hands over a 10% deposit to the EA before after a few weeks you finally get the keys???

am i way off the mark with this being a FTB its confusing. How long does it usually take a broker to get you mortage approved once they have all your paper work??

positivenote - yes the booking deposit is paid when you go sale agreed to secure the sale agreed ! ours was about 5k

we obviously had approval in principal but once we went sale agreed we had to fill out all the forms and get them the documentation that they needed - it took about 2 weeks in all

pardon the ignorence, but was that booking deposite paid personally by you to the EA and was it then taken off the price of the house or did you pay through the solicitor?

The booking deposit is generally paid via the EA and is subject to mortgage, title and survey (effectively allowing either party to withdraw prior to signing contracts). With a 100% mortgage most lenders now have a mechanism to allow 10% of the mortgage to be drawn at the time of signing contracts - it's this sum which must be requested by the solicitor. Given that 100% mortgages - and forward payment of the 10% - are relatively new not all solicitors will be familiar with the process. And some deposits are easy to facilitate, some require a whole new application.

Sarah

www.rea.ie

Thank you Sarah, the bank have sent loan contracts to solicitor so hopefully deposit will be requested and drawn down.

Positive Note we actually went straight to bank , got all our paperwork and then got approval in principal, Our bank has told us the solicitor will need to draw our booking deposit now, but it seems there are different ways of doing the booking deposit.

Thank you Eimear, its very difficult to see the wood for the trees when you are an FTB !