Not ready to buy yet? Here's what you can do to prepare.
Even if your plans are on hold for the moment there's plenty you can do right now to make sure you're ready once the time comes.
Buying a home is one of the most difficult thing you will do. A shortage of housing stock and a competitive housing market can mean that timing a property purchase can make it even harder. If your dream of home ownership is delayed here are some thing you can do to make sure you're ready to make a running start when the time feels right.
1. Find your price range
Daft’s Buying Budget Calculator can help you find out exactly what you can afford right now and how long it will take to increase that amount. Simply input your income, monthly costs and your deposit to get an estimate.
2. Check your credit rating
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.
3. Keep saving
If possible keep saving as much as you can. This will increase your deposit which may mean you can borrow a higher amount. It also will help with all the hidden costs of home buying once the time comes. Our Buying Budget gives you a customised savings plan (example below) that will tell you how long until you're ready to talk to a lender.
4. Prove you 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 check this by asking you to save a certain amount each month and they will only consider your previous 6 months savings. This means that 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.
5. Do your research
Look at homes at Daft to see what’s available in your price range. Think about your must-haves and nice-to-haves so you can focus your search when you’re ready to take the next step. Maybe you know exactly where you want to live or maybe you're still deciding. Take a look at these Neighbourhood Guides that can help make that decision for you.
6. Get Pre-Approved
If you think you’ll be ready to buy in the next 3 to 6 months, you can request an Approval in Principle letter. This may help secure viewings faster and will allow you to start bidding once you find your dream home.