Loan Prior To Mortgage Drawdown

B

bowman

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Hello all,

First time poster here so please be gentle.

Myself and wife have relocated from Dublin to a provincial town last year in search of a better standard of living and to maybe own our own home. Luckily we were both able to secure good jobs and have a joint income of c.90K. We have saved enough money for a deposit to secure a relatively small mortgage c.146,000 on a new build which is due to be completed in a couple of weeks. We are hoping that we should close around end of October roughly.

We have received our loan pack with full mortgage approval for the property but we are contemplating applying for a credit union or other bank loan to help get some basic furnishings. Our plan has been to continue to pay the Dublin rental figure we were paying which will help to overpay the mortgage and get it down to a manageable level as advised many times on this site. However in the shorter term we are thinking of using some of this budget to furnish the main rooms of the house before we switch that to overpayments.

The question really is, if we were to approach an institution and apply for a loan before we draw the mortgage down, could this cause a delay to the mortgage process? The affordability wouldn't be an issue but with the house in question there is the possibility for us to choose a more expensive flooring or kitchen, which would need to be covered up front.

Family help and credit cards arent really an option, so a short term loan would be the option to get us over the line.

Thanks in advance for any opinions, or advice.
 
Yes, it could cause an issue.

Banks often do a last minute credit check.

Wait until you've drawn the mortgage down.
 
Do what Gordon has said. You could lose the mortgage if you go over the banks limits. It even applies to 0% credit that some places give. Play it safe and get the cheque cashed and then go look for a loan of furnishings.

We've all have to rough it for a bit when we buy our first house so don't worry about not having any furnishings for a bit. See what you can beg, borrow or steal off people until you get yourself sorted.

Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Thanks for the responses, much appreciated. We will just sit tight until we get in and figure it out from there.
 
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