There are 8 steps you need to take to get a mortgage in Ireland.
Step 1: Work out how much need
Calculate how much you think the property you want to buy will cost and how much of a deposit is required. The difference between the two is the size of mortgage you need. Use online calculators to determine the monthly cost of this mortgage and ask yourself, can I (or we) afford this?
Step 2: Talk to a mortgage specialist
You can go either two routes here. Do all the donkey work yourself or, as I would recommend, talk to a mortgage specialist. They will assess your financial circumstances, let you know what’s possible under Central Bank rules, and explain the mortgage process.
Step 3: Save for your deposit
First time buyers can apply for a mortgage of up to 90% of the value of a property so 10% must come from your own savings (the deposit). Movers generally need to provide 20% of the purchase price. And don’t forget to budget for other expenses such as stamp duty, legal fees, home insurance and life cover – not to mention furnishing your new home.
Step 4: Start your application
Once you have your deposit saved, and you understand what’s what, it’s time to apply for your mortgage. You’ll usually be given an acknowledgement of how much you can borrow and asked for documentation …
Step 5: Get your docs in order
You’ll need to provide proof of income (payslips) and proof of expenditure (current account and credit card statements) and proof of savings (deposit account statements) for assessment.
Step 6: Get approval in principle
If your application is successful you will get formal Approval in Principle. This means your loan is approved and you can go house-hunting (but not contract signing) confident that your mortgage is lined up. This approval generally lasts for six months.
Step 7: Find a home
When you find a suitable property (easier said than done I know) and your offer is accepted, your mortgage specialist will finalise your mortgage application. You’ll then receive a formal Loan Offer to buy your new property along with any final requirements (valuation and survey and insurance) before you can trigger your mortgage loan.
Step 8: Complete the purchase
Once all that is in order, your solicitor will draw down your mortgage funds, close the property purchase, and transfer the title on your behalf. Then you can pick up the keys and move in!
If you like this article, try this one: Why You Should Own Your Own Home