Delay in getting mortgage approval - will I lose deposit?

Hi, im new to this forum and just wanted to ask a question! When you put down the booking deposit on a new house, they give you 3 weeks to get mortgage approval and then you have to pay a final deposit. But, if you're still waiting on mortgage approval to come through after the 3 weeks is up, where's does that leave you?

I mean, do you lose your booking deposit or will they give you a few more days to get mortgage approval?

Thanks

Re: Question?

In practice, the three weeks tends to be only a guideline. In that period, the vendor's solicitor has to send contracts to your solicitor, your solicitor has to examine the contracts and ask any queries s/he thinks necessary and only then are you ready to sign the contracts and pay over the balance of the deposit. If you go over three weeks, especially in today's housing market, I'd say it's unlikely that much will happen.

Anyway, if your mortgage application has been correctly packaged with all the relevant information, it should take less than three weeks to get mortgage approval.

P.S. - you might get a better response level if you edit the title of your post to give a better indication of what your query is about.

I have edited the title of this thread to make it meaningful.

Johnny Boy - will you read the Posting Guidelines so that you can get the best out of AAM.

Brendan

Will read it now.

Thanks for your help.

so let me understand this correctly, did you put a deposit down on a house without getting moeven mortgage approval in principle?

if you the bank has said they will give you the mortgage but the paper work hasn't gone through yet then you should be alright. the vendor won't pull out as the need the sale.

Apple* said:

so let me understand this correctly, did you put a deposit down on a house without getting moeven mortgage approval in principle?

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No, he put a fully refundable booking deposit down. It's perfectly normal to put this down without having mortgage approval.

Usually there is some bonus for putting down the contract deposit within 3 weeks, e.g getting electrical appliances included or a tiling allowance or something. If you don't get it done in 3 weeks you don't get the bonus so check that out.

Other than that i'm sure you'll fine. A couple of years ago when there was a queue of people behind you it may have been an issue but in the current climate i don't think any builder is going to tell you to go away because you are a week or two late.

A booking deposit is refundable if either party pulls out. Only risk is that you might lose the house but in the current market that's not very likely.

plant43 said:

No, he put a fully refundable booking deposit down. It's perfectly normal to put this down without having mortgage approval.

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is it? ok i know personally if someone put an offer on my place i'd want to make sure they could actually get a mortgage before going sale agreed and taking it off the market. but thats just me. i wouldn't want someone wasting my time.

anyway, Op don't worry about going over the 3 weeks. it'll be ok as long as you get the mortgage stuff sorted. in any case you won't lose your deposit... you can take it back up to the time you sign contracts.

apologies - i didn't read the bit where it said NEW house...


abuilders will wait...don't worry OP