Mortgage Approval

M

mia

Guest
We have recently had sale agreed verbally as we buying straight from seller. Before we put an offer in i contacted bank with all revelant information and was told we had pre loan approval and the bank permanent tsb are sending out their valuer to value the property.Can anyone tell me what is difference between pre approval and letter of approval. House priced at 243,000 and we have applied for loan of 150,000. Does life insurance have to be approved before letter of approval sent out? I am a qualified sports scuba diver and worried that life insurance companies might not like the fact im a diver and this may slow things up. We currently in rented accomadition as we are second time buyers. Both we and sellers are keen to get quick closing as property vacanted the last two months. Can anyone give us some feedback on any of the issues.

Thanks Mia
 
i'm at the same stage also, just waiting for the letter of approval, also i sky dive, i wonder what that would do to my life assurance if i kept it up !!!
 
Pre loan approval means that you application has been assessed and a certain sum has been approved. When you find a house it has to be valued by a panel valuer and, assuming the property is OK, a formal mortgage offer will be issued. Life cover does not have to be in place before loan approval. Insurance companies have questionnaires to cover most 'dangerous' sports - flying, diving, climbing, motor racing, etc and you should ask your broker to send you one covering your sport at the same time as the proposal form. It's unlikely to affect your mortgage protection cover although there might be a slight loading of the premium. The only time I've seen it cause a real problem is a client of mine who regularly travelled to Bogata in Columbia on business and the insurers deemed the country to be too dangerous to offer him cover! Even in an extreme circumstance like this there is provision under the Consumer Credit Act to waive mortgage protection if it is declined.

Sarah

www.rea.ie
 
Thanks Sarah,

We have just found out that valuer has been to the property so hoping that letter of approval will arrive at our solicitors early next week. Have told the bank about my sport and asked them to get the extra paper work for my life insurance, still waiting on it since last week. We are really keen to close as we have a summer bussiness on an island and would love to have our belongings moved in by the end of June as we dont want to be paying rent for an empty rented house. Any tips on how to make things go quicker?

Thanks Mia
 
We got our mortgage approval; got sale agreed and it took PTSB 4 or 5 weeks to get the loan pack to the solicitor. It was incredibly frusrating. Its 2 months now since we got sale agreed and paid our deposit and i still have not signed the contract or the loan pack.
 
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