Mortgage approval ratings have been unaffected by COVID-19, thus far. However, when you move on to complete mortgage acceptance, you’ll almost certainly be asked to confirm that your employment status hasn’t changed since you filed your documents. If your financial conditions have changed, you must demonstrate to your lender that you can continue to make daily mortgage payments.
Is it possible to get a mortgage approval extension?
If your circumstances have not materially changed as a result of COVID-19, your lender, be they a bank or broker, can extend the mortgage approval period. A grace period of 3-6 months is usually possible, although this will vary depending on the circumstances.
On the other hand, your lender can refuse you a loan if your circumstances have changed significantly as a result of Covid-19. For example, AIB, Ireland’s largest bank, has essentially stopped lending to people who receive or have received government subsidies COVID 19.
Is it possible to defer payments on an approved mortgage loan?
When all standard conditions are met, and up-to-date paperwork is given, your lender will expedite the issuance of the mortgage within the usual time frame. However, delays can occur due to factors outside the lender’s control, such as appraisers’ ability to complete a total valuation or legal practitioners’ inability to obtain the documentation needed to complete a transaction.
Is there a risk to mortgage approvals due to the slowdown in home construction?
Not at all. Your mortgage approval usually is valid for six months, but some lenders can extend it. If you need additional time due to a delay in the completion of your house, your lender will work with you to make the process as simple as possible.
Is it possible to apply for a new mortgage today?
Yes, lenders such as brokers and banks, due to their vast resources, are still accepting applications for new mortgages from all borrowers, including those who wish to move or change their current mortgage. However, whether you are accepted or not, is dependent on your particular circumstances and the lender’s end decision.
Due to the coronavirus, how long does it take to wait for full mortgage approval?
Lenders are continuing to operate as quickly as current conditions allow with loan applications and approvals. The decision takes typically 4-6 weeks after obtaining a wholly completed application and supporting documents.
Is it possible to lose the deposit you paid?
The question of a deposit in a real estate transaction depends on your lawyer.
It is recommended that the contract contain a specific provision that the lender approves the loan on the contract’s completion date and for a sum sufficient to enable the buyer to complete the transaction. If this particular provision is included in the agreement, the buyer will rely on it to ensure that he can complete the transaction.
Written by Bader Albader, market researcher.