Before any lender will consider giving you a loan, they’re going to want to know about your financial health so give yourself a thorough credit check-up. Start by asking yourself the following questions:
- How much do you earn and can you prove it? PAYE employees in permanent employment have the easiest time proving earnings. All it usually takes is a P60 and a letter from your employer confirming your employment status and your annual earnings. That letter will also confirm if you get bonuses, or if/when your annual income rises. Contract workers or the self-employed will need considerable more proof of earnings and security of income, including audited accounts and evidence of work contracts.
- How credit worthy are you? Have you ever defaulted on a loan? Missed several credit payments? If you think you might have a black mark on your credit history get a copy of it from the Irish Credit Bureau (www.icb.ie). Any lender will check your credit history out, so you’ll save yourself a lot of grief by trying to sort out any old credit problems you might have had in the past.
- Do you have any other loans? If you are a first time buyer you can improve your chances of getting the mortgage you want by minimising your existing loans. Lenders will look at how much of your income is going to servicing these debts and adjust the amount they are willing to loan you accordingly.
- The calculator on this site will give you an indication of how much you are likely to be able to borrow. The next step is to get mortgage approval “in principal” or “full mortgage approval”.
You can go directly to the bank or building society – check out the Mortgages section of MyHome.ie and get an online quote from some of the top mortgage providers in the market or get a mortgage broker to shop around for you to find the best deals. Make sure to be clear from the start the level of fees and commission charged by the broker.
What do I need to bring with me when seeking a mortgage?
1. A copy of your latest P60
2. Copies of your most recent pay slips – different lenders will require pay slips for different periods of time.
3. Copies of current loans and mortgage statements where appropriate
4. Evidence of savings – bank, credit union, pension statements
5. Completed Employer Enquiry Form – this is a form to be signed by your employer stating that you are in employment and earn X amount.
6. Copies of your bank statements for the last six months
7. Two forms of ID, a passport photo and a utility bill