A mortgage is a loan required to finance the purchase of a property and allows individuals to buy a property now and pay for over an agreed term of usually 20-30 years.
When you are obtaining a mortgage, you will need to put down a deposit. The amount of this deposit will depend on whether you are a first-time buyer or non-first-time buyer, and on the lender’s criteria for the amount they will lend compared to the value of the property.
When applying for a mortgage there is a large amount of documentation required. When making an appointment with a Financial Broker to commence the process of applying for a mortgage you should ask what documents you will need to bring with you, such as the last six months’ bank statements, loan statements and pay slips.
Prior to applying for a mortgage, you can also run your own credit check by logging on to www.icb.ie and paying a small fee.
The best journey always takes us home.
Your Financial Broker will be able to explain the choices available to you in simple language, allowing you to make an informed decision. They can guide you on the decisions you need to make, based on your personal and financial circumstances and ensure that you choose the best mortgage to suit your needs and circumstances.
Does your job provide you with a steady income? Lenders are looking closely at basic income. Bonuses and overtime cannot be guaranteed to be considered when a lender is assessing your application.
How long have you been in employment? To obtain a mortgage you must have completed your probationary period and you should have at least six months (but preferably twelve months) in continuous employment.
You will be required to have 10% of the purchase price of the property you intend on buying for first time buyers. 20% of the purchase price of the property for non-first-time buyers.
Set up a savings account. Be cautious of transactions made through your bank account.
Avoid overdrafts and records of careless spending.
Start getting your documents in order.
Check out ‘Help to Buy’ schemes for first time buyers building new properties