Your essential first step to buying a home in Ireland
Key Points:
Securing your Mortgage Approval in Principle:
- Know Your Budget: Confirms exactly how much you can borrow so you can search for homes within your actual price range.
- Bidding Power: Proves to Irish estate agents and sellers that you are a serious, qualified buyer ready to make an offer.
- No Obligation: Offers an essential, free financial assessment valid for 6 months, with zero commitment to take out the final loan.
What is a Mortgage Approval in Principle and Why Do You Need It?
Before you can purchase a property and move in, you need to get the bank to agree to lend you the money, also known as mortgage approval in principle.
It’s also good to start this process well ahead of time before you go looking for a home.
Actually, it’s essential that you secure the mortgage approval in principle before you go house hunting because real estate agents won’t even engage or help you unless you’ve secured your mortgage.
So, you should start the mortgage application process at least 4 to 6 weeks earlier. And remember that once granted, the mortgage approval will last for six months so you’ll have plenty of time to find a property!
What does the bank look at when they consider a mortgage application?
- Income
- Showing the bank that you can meet the repayments
- This is a big one, and the banks will look for proof that you can repay the new mortgage based on your:
- Monthly savings (they want to see that they are consistent)
- Rent can be seen going out of bank account
- Loans that you may be paying that will be gone
- Banks will look at the profile of the borrower.
Basically, does it make common sense (and good business!) to issue a mortgage in principle to this applicant? To judge that, they don’t want to see any evidence of gambling, missed direct debits, people living in their overdraft, etc. If you have missed payments or loans in your past, it will create big problems during the mortgage process. The banks will look at the Central Bank credit register, so it’s best that we check that now.
Contact JC Mortgages to secure your mortgage approval in principle
For a personalised, no obligation consultation, make contact today and we’ll guide your from start to finish through your mortgage journey.