Omega Financial Management | Mortgages | Step By Step Guide

 

 

A Step By Step Guide to Buying Your Home
 

Below is a handy step by step guide to buying your first home; from making the initial decision to buy, to receiving the keys of your first home and moving in.


1. Establishing how much you can borrow

One of our dedicated mortgage consultants will approach up to 10 banks on your behalf and outline how much of a mortgage they will give you. When you have done this you will then know exactly how much money you will need to put with your mortgage to complete the purchase. In addition you may have to take into consideration stamp duty and legal fees.

It is possible to borrow up to 92% of the purchase price assuming your earnings can justify the repayments. The amount that a lender will advance to you differs on a case by case basis.


2. Submitting your application and getting approval in principle

When you have found a property you can then go about completing an application and getting approval in principle. This means giving the details of the property to the lender and asking them to verify the loan.

At this stage you will also be asked by the Auctioneer to put a deposit on the house to reserve it for you. This is not a full commitment to purchase and you will be able to back out at this point if necessary without losing your deposit. It is at this juncture that a full mortgage application must be filled out and the following included:

  1. Evidence of ID and address verification

  2. Employed:         

    1. Most recent p60’s for the borrowers
    2. Salary certificate for all applicants confirming Gross income and Permanency
    3. 3 recent payslips

  3. Self Employed

    1. 2 years Audited accounts
    2. Confirmation of tax affairs
    3. 3 Months Business Current Account Statement

  4. Direct Debit mandate
  5. Bank Statements
  6. Evidence of all savings/investments
  7. Loan Statements (if applicable)


3. Signing Contracts

Soon after putting down your deposit the contracts will be sent from the vendors (sellers) solicitor to your solicitor and you will be requested to sign them. By signing them you are giving a commitment to purchase and are bound by them once you do so. An additional payment, normally up to 10% will also be required.


4. Letter of Offer

At this point it is imperative that you have a ‘Letter of Offer’ from a bank or building society which gives the details of the mortgage that you have been offered. It will also outline any conditions that are to be met by you before the mortgage cheque is passed over.

Standard conditions of a loan offer generally include having a valuation done on the property and having life assurance and house insurance in place. You will generally be responsible for the payment of the valuation fees, which usually cost in the region of €130 plus VAT.


5. Insurance & Assurance


At this stage you will need to have your mortgage protection life assurance policy in place. This is a legal requirement of all lenders so that in the event of either of the mortgage holders death the lender gets paid immediately. This policy is assigned to the mortgage provider.

Buildings Insurance will also have to be in place to ensure that in the event of fire you can afford to have your home rebuilt.

 


WARNING: The cost of your monthly payments may increase. Your home may be at risk if you do not keep up payments on a mortgage or any other loan secured on it.

  

















 

 

 

 

 

 

 

 

 

 

 

 

 

 


OFM Financial Limited T/A Omega Financial Management is regulated by the Financial Regulator.
Registered in Ireland. Registration Number 226937