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Mortgage Application
Bluelad_2
Posts: 90 Forumite
Please bear with my post as I'm new to the MSE forums......posting that is. I've been reading them for a while and they're great!
We're about to apply for a mortgage on our next house. We have around 45% of the price in equity. The sum we are looking to borrow is 8k less than the maximum that the mortgage company said they would lend us when we got the A.I.P. The house we are buying is a 1960's semi and is in good order
My concern is that after paying out for surveys etc, the mortgage company comes back and says we'll only give you a sum that is substantially less than needed and therefore leaving us unable tobuy the house.
I've been pretty careful with my sums, and hopefully everything will be fine.
Am I being over cautious/paranoid???
We're about to apply for a mortgage on our next house. We have around 45% of the price in equity. The sum we are looking to borrow is 8k less than the maximum that the mortgage company said they would lend us when we got the A.I.P. The house we are buying is a 1960's semi and is in good order
My concern is that after paying out for surveys etc, the mortgage company comes back and says we'll only give you a sum that is substantially less than needed and therefore leaving us unable tobuy the house.
I've been pretty careful with my sums, and hopefully everything will be fine.
Am I being over cautious/paranoid???
0
Comments
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Totally!
Down valuations are still fairly rare, so why worry about somthing over which you have no control?!!
The income figures you gave at AIP stage should match those that will be now verified by underwriters, so no need to worry.0 -
There are costs and risks to buying a property. Upfront fees are one of those risks. Some lenders have types of properties that they will not lend upon. There may be problems found by the surveyor, their valuation may be lower than the asking price. You should haggle over the price in any event. There is no certainty that you will be able to buy the property in question as it could be pulled off the market or sold to somebody else.
Try to shift fees so that they are put on the mortgage or apply after completion. If there is any flexibility in the mortgage deal then you need not pay for these fees over the life of the mortgage.
In general, find our what happens to the fees you have paid or face if the deal falls through.
J_B.0 -
I am in the same situation, its just a waiting game.
If the mortgage doesnt come through, or isnt enough, I think you just have to write of the loss of cash for the searches etc.
Its part of the risk of house buying I think, no alternative other than not to buy.0
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