Applying for a mortgage as a first-time homebuyer is intimidating. We’ve put together a helpful, step-by-step guide to help you through the mortgage process.
10 steps toward a mortgage for first-time buyers
Gather your documents
Your lender will need a detailed understanding of your financial situation to work with you.
Here are documents lenders often request:
1. 3 months recent payslips
2. Salary Cert
4. 6 months current account for all active accounts (estatement is fine)
5. 6 months savings account (estatement is fine)
6. Credit cards statements x 6 months
7. Loan statements x 12 months (mortgage – most recent statement)
8. Credit Union x 6 months if active
9. ID - scan
10. Proof of address
If you’re self-employed, you’ll likely need to provide additional documents, including:
Form 11 from the previous two or three years (depending on the lender)
PAYE Chapter 4 / Notice of Assessment from the previous two or three years (depending on the lender)
Profit and Loss / Trading P&L and balance sheet from the previous two or three years (depending on the lender)
Mgmt. Accountants for current year to date
Tax Clearance Certs – company and personal
6 months business current account for all active accounts (estatement is fine)
2. Get salary certificates
Salary certificates give a more detailed look at the income you earn from your employer. It includes information about your salary, bonuses, and job duties. Salary certificates are signed and endorsed by your employer.
3. Meet with a mortgage expert
There are several mortgage products to choose from in Ireland. An expert with Symmetry Financial Management can determine what product is best for you and guide you through the application process.
4. Submit your application
Once you’ve provided all of the documents and selected a mortgage product, you’ll submit your application for approval. The approval process usually takes about five to seven working days. You’ll receive what’s called an approval in principle, which is the amount your lender is willing to let you borrow for your mortgage.
5. Find a home
Here’s the fun part: Shopping for your future home! Once you find a home you love, you’ll need to put down a booking deposit and tell your lender.
6. Get the home valued and surveyed
To determine loan requirements, you’ll need to have your home valued. This is also the time to request a structural survey of the property to see if it needs any significant repairs.
7. Advance your application to the offer stage
Once your home passes necessary inspections, your mortgage application will advance to the offer stage of the process. Contracts will be issued to your solicitor.
8. Sign the contracts
When your mortgage contracts are drawn up, you’ll meet with your solicitor to sign the mortgage contracts.
9. Arrange insurance coverage and other details
You may need to provide proof that you have homeowner’s insurance, mortgage protection insurance or life insurance. Your lender may also have you set up an account with their financial institution.
10. Funds are drawn and you become a homeowner
You’ll make any necessary up-front payments and finally get your keys. Congratulations, you’re now a homeowner!
Contact Mark at Symmetry Financial Management to learn more