The rules are there for a reason. Pre-2008 the banks did not follow proper banking practice and you are stuck with the restrictive rules now imposed by the Central Bank of Ireland. Save it, store it whenever you buy a house in Ireland it always costs you more than you thought. Even Dermot Bannon went over budget – but at least you have a home.
One word – delay. The TV ads say come to us and get your dream house. You go to a branch they want to know all about you. Invasion of privacy/GRPR doesn’t come into it credit card statements tell a lot.
No betting accounts.
No excessive consumer spending.
All give a picture whether you are a good risk or not for the next 25/30 years.
Having passed through the hurdles at local level all smiles and recommendations all applications go to Dublin to be cross checked again. Here’s where the delay comes. You find you could be in a catch 22 situation. Until you get a loan offer you cannot confirm the purchase and in a market where built houses are scarce you can’t confirm anything.
Oh and even where the loan offer does come it is a limited shelf life – usually 6 months. If you go outside that time you may need to reapply ..so that’s lending in Ireland 2020 style.
The Interest Rate
Here you need to be extra careful. Separate the hype
– money back et cetera from the main message.
– What interest rate are you charging me?
– 1/2% does’nt sound much but over 25 years it’s a lot so focus on this first when seeking money.
Remember it’s the same stuff wherever you go: you need to minimise what it costs you.
Here you need someone on your side. Yes we know they are slow and fast/cheapand you have limited funds. If you see quotes we have a quote generator on our website (insert link)
you don’t even have to phone us. You may get others to quote by email – someone to quote it all. But we outline the full amount to allow you to budget accurately.
So the money is offered the contracts out to the solicitor but you must get the property checked out to see what you’re buying. Your solicitor can guide you as to who the people are to do this.
We say when clients ask how long will it take to complete? The answer is we are as quick as the slowest member of the chain.
In fairness the lawyers are efficient but the banks are usually the cause of delay. Between the approval of loan, the issue of the loan pack and the final payment of the loan check even when now it is sent by electronic funds transfer they are usually the cause of delays in the process. They are needed so we have to go at their pace. Covid 19 hasn’t helped. The cash buyer has therefore an advantage over somebody bidding for the house. The vendor will always give preference to a cash buyer if one is bidding on a property. Bear that in mind if you feel you have been overlooked in a bidding war.
Finally it’s not all a struggle. When you get the keys to your own house they come from the auctioneer directly once the monies received by the sellers solicitor you will get a burst of excitement that hard to beat.
Well done got through it…….. now you are a proud householder.
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