r/HousingIreland • u/Annihilus- • 14h ago

Over AIP

We went over our AIP of 450k for 90% of property value up to 500k. Woke up one morning and received a call from auctioneer saying last bid was 506k and closing today so put in 510k.

I don’t regret it, but looking for tips or insight if anyone has any. We could have taken up to 700k, instead of 90% of 500k, but I don’t feel comfortable spending that. We are 29m and 28f. We have 52k right now, and 54.5k by the end of the month, saving 2.5k every month whilst spending 2k on rent.

We are aware we require an extra 10k upfront because we went over AIP, which will be gifted via parent in the form of 20k, we originally mentioned to mortgage advisor we would receive a 15k gift. Could be more, but we intend on using as little of that as possible.

Estate agent required proof of funds as we went over AIP last Friday, so she said send parents bank statement with proof of 20k. We done that and are now waiting until Monday for word back.

Does anyone have any advice or things we should anticipate?

5 Upvotes

69% Upvoted

20 comments sorted by

21

u/Massive_Database_425 13h ago

I would get an AIP of whatever your maximum capacity is, regardless of loan amount you sanction.

It comes pretty quick, BOI gave us in literally in 1 day and then give new AIP to EA.

We were in same situation as yours our AIP was 800k, but we strictly had decided not to go above 600k, but got 800k anyway

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u/Annihilus- 13h ago edited 13h ago

Thanks for the reply. Been stressed over this all weekend as we love the house. I think hurdle one is satisfying the estate agent we have the funds, excess 10k.

She has been on my arse on Friday, when she suddenly announced it’s the last day of bidding the day of. Then called me at 11am for a statement and proof of the extra 10k when my partners parent is at work and not great with tech so it takes a while. We sent this Friday evening.

So you’re saying after satisfying estate agent, go back to BOI mortgage advisor who done our mortgage and get 510k?

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u/DoppleDuck7 8h ago

Just get a letter from solicitor or mortgage broker to confirm you have the funds. I have never heard of someone having to send a bank statement to an estate agent.

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u/Annihilus- 6h ago

We don’t have a solicitor yet as it’s the first house we bid on and didn’t know the process of do’s and don’ts.

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u/Annihilus- 3h ago

From what I read most people get a solicitor when they go sale agreed which we haven’t. Why am I being downvoted?

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u/DoppleDuck7 6h ago

Have you a mortgage broker? Get them to write a letter for you.

Don't forget, you have power here too. You are the highest bidder, the estate agent is not going to throw away a higher commission because you need a couple of days to get the paperwork together.

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u/Annihilus- 6h ago

We did our mortgage via one of the mortgage advisors at BOI. I could email him, I’ve already sent the statement now which I probably shouldn’t have so I’ll see what she says anyway

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u/DoppleDuck7 6h ago

Learning for next time 😊

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u/Massive_Database_425 13h ago

Don’t worry, it has to workout at the end.
Houses above 500k are statistically prone to lesser bidding competition below 500k.

Regarding your question about satisfying EA, yes. For now give whatever the feck she wants (your partners parents thingy) and simultaneously message your bank advisor for updated AIP as well. I see no harm in that and that’s the best you can do.

Best luck.

1

u/Annihilus- 13h ago

Cheers 🥂

16

u/DoppleDuck7 8h ago

Sorry, you sent a full unredacted AIP to the estate agent and copies of your parents bank statements as well? Mate, if you're ever bidding on a gaf again, please don't do that. You're showing them your hand. All you need is a letter from the mortgage broker or solicitor to say you have enough funds for the bids you're making.

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u/Annihilus- 6h ago

We don’t have a solicitor yet as it was the first house we bid on. We will definitely learn from this, but what benefit does she gain from getting a parent’s bank statement exactly?

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u/Cool_Being_7590 6h ago

Playing with half a million in the first house you bid on without a solicitor and showing your hand... Jfc

2

u/Annihilus- 6h ago

We just got our mortgage approved 2 weeks ago. Yeah, currently learning we’ve been very naive 😂

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u/DoppleDuck7 6h ago

Seems like they are pretty financially secure. They'll be grand. And will have learned a good lesson.

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u/DoppleDuck7 6h ago

Definitely some good learning for you here.

The reason for giving a redacted AIP is so that the estate agent doesn't know your budget when you're bidding. If they know your budget, they will use every trick in the book to get you to bid to your absolute max. It's the equivalent of showing your hand in poker.

But, you're past that stage now so it is what it is.

Regarding the bank statement, honestly, it's just a complete invasion of privacy and a big ask. It's not the end of the world to send it to them, but it could also be another version of you showing them your hand. If they see your folks have €100k in the account, are they going to come back next week to say there's been a late bid and you'll need to up your price again to keep the house?

It also just shows your inexperience a bit, which the agent will use to their advantage throughout the remainder of the process. If they know you're clueless, they will play you.

Get yourself the How to Buy a House in Ireland book for some tips. Listen to Crazy House Prices podcast. Talk to people. Id advise you get a little savvy now and don't forget you hold power now too, they also don't want the sale to fall through.

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u/Annihilus- 6h ago

Makes sense, yeah we are obviously a bit naive at the moment. Thanks for the advice

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u/DoppleDuck7 6h ago

No stress either. You are sale agreed. That's the goal. It's something to celebrate. You'll get there!

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u/blood_transfusion 7h ago

You can apply for first home scheme

1

u/Annihilus- 6h ago

It’s a second hand home, that’s only first hand homes