Step 1 – Decide how much you can borrowYour first port of call is to talk to a mortgage advisor. They’ll be able to indicate how much you can borrow based on your earnings, your current financial commitments and any savings you may have.
Step 2 – Work out what you can afford to repayTo find out roughly how much you can afford in monthly repayments, you need to compare your incoming salary with your outgoing expenses. The figure you get when you subtract all of your expenses from your income is your disposable income, you should ensure that this surplus income is sufficient to meet all your requirements.
Don’t forget about applying for your First Time Buyer Mortgage Interest Relief. Up-to-date details can be found on www.revenue.ie.
Step 3 – Determine how much savings you will need
You will need to have a minimum of 8% of the property value or price saved for your deposit. Don’t forget about those additional costs like legal fees, a valuation report or surveyors report, taxes, home insurance and your mortgage protection policy.
Step 4 – Choose what professional services you will need
Solicitors are one of the main professionals needed in the home buying process. You will also need a valuation report and/or a surveyor’s report.
Step 5 – Decide on the type of mortgage to suit you
Mortgages come in many shapes and sizes so it’s important to find the right fit for you. Your Mortgage Advisor can help you choose the type of rate that will best suit you.
Step 6 – Make sure you’ve got it covered
Before your mortgage cheque issues you’ll need to arrange building insurance. You should consider opting for a more enhanced building and contents insurance. If you are purchasing an apartment, check to see if building insurance is part of your annual maintenance fees.
Also remember that you are required by law to take out life assurance for the amount and term of your planned mortgage. Then should you die before your loan is repaid, the outstanding debt is automatically paid off.
Step 7 – Apply for your Mortgage
Mortgage Advisors in any Bank of Ireland branch will help you through every stage. Here is an idea of the stages of the mortgage:
- Drop into your local Branch where Mortgage Advisors will be happy to complete an application for you. Ideally you should bring in your most recent payslip/P60
- Letter of offer: If your application is approved you will receive a letter of offer, usually within 3 working days.
- Choose your solicitor: and advise your mortgage provider of their contact details. Your Mortgage Advisor will then send a copy of the Letter of Offer and a pack to your solicitor containing all the legal forms.
- Booking deposit: You will need to pay a booking deposit to the estate agent handling the sale of your property or the solicitor for the vendor, this will usually secure it for between 21 – 28 days, so you can progress your mortgage application. Your mortgage advisor will also arrange a valuation on the property from your valuer.
- Review and sign: Review the Letter of Offer and all documentation with your solicitor. Once you’re sure you can meet the conditions of the loan, sign and return it to your Mortgage Advisor along with all the supporting documentation.
- Protection: Arrange your home insurance and life assurance. Allow plenty of time for unforeseen delays with arranging your insurance.
- Deposit: On exchange of contracts you will need to pay your non-refundable deposit. This commits both parties to the sale.
- Closing: On closing the deal, your lender will send your mortgage cheque to your solicitor and then you can pick up the keys to your new home.
So what’s stopping you? If you are considering buying your first home, start here. Our qualified mortgage advisers are on-hand to talk you through your financial choices. So drop in to any our branches, call us on 1890 365 345 or log on to Bank Of Ireland.ie