Get Mortgage Ready
Applying for a mortgage is a big step and there are a few things you need to have it place before you contact a bank. Read through these tips to make sure you're in the best position to get approval.
A clean credit history
Your credit rating will determine whether a bank will offer you a mortgage so it's a good idea to check it out before applying; particularly if you missed loan or credit card repayments when you were younger.
In Ireland, there is currently only one organisation that holds credit information about you and can provide credit reports. The Central Credit Register can do this and good news is, it's free.
The lender is going to want to see many documents so it's important to make sure they are all possible to get. They will likely look for six months of bank statements, your P60, recent payslips, proof of employment and proof of other financial commitments. If your employer was receiving Covid support you may be asked for additional documentation there.
Even if you have all your deposit saved the bank will want to make sure you have a good habit of saving regularly. And don't forget, avoid withdrawing any funds from your savings account. The banks will not look favourably at using savings to supplement other costs.
Find out how much you can afford
Use our Buying Budget to find out how much you can afford and how many more months you need to keep saving. It will also give you a breakdown of costs and potential grants you may qualify for.
Have you heard about "Proven Repayment Ability"?
It's one of the most important checks your lender will look for in your mortgage application and they won't approve your mortgage without it! You need to prove to the lender that you can afford to pay back your mortgage payment each month. So the lenders verifies this by asking you to save a certain amount each month and they will only consider your previous 6 months savings.
This means if you miss a month, then you may have to start from scratch again! The lenders will also consider rental payments and if you cancel or clear a loan repayment as proof of repayment ability too.
This is a big decision so speaking to an expert can save you time, energy and money. Click HERE to find out more.