If you’re thinking about applying for a home loan, there are a number of things you can do to save yourself time, money and stress when it comes to the loan application process. Your mortgage broker can help guide you through this process, but to get started, here is our list of top tips of what you need to get mortgage ready.
- Proof of a stable income.
Lenders want to see a good history of steady, basic income, and this often can’t be guaranteed with bonuses and overtime. It’s important to be armed with six months of payslips, last year’s P60 and a salary cert provided by your employer.
- Evidence of permanent employment.
If you’re in a new job, lenders will want to see that you’ve passed your probationary period, with at least six months (preferably 12) in continuous employment.
- Sufficient funds to cover the costs of purchase.
You’ll need more funds than just the cost of the house to secure your purchase. You’ll need to make sure you have enough money for the deposit, valuation and legal
fees, stamp duty and for incidentals such as furnishing the property, testing well water, removals and so forth. Your lender will ask you to have between 10%
and 20% of your property’s purchase price and you’ll need to show evidence of this, such as bank statements. Take note that you should always wait until advised by your mortgage broker before instructing a valuation or solicitor as both are required to be on your lender’s valuer and solicitor panel.
- A track record for regular saving.
Lenders want to see savings. It shows them you have good financial planning ability and can make repayments. It’s also important to show lenders that you have the ability to repay your loan, for example through your record for paying rent and a savings history. Loans that have been successfully paid off are also handy to show your lender your ability to repay.
- Show that you pay your bills on time
If your statement shows that you have unpaid direct debits or standing orders, you’ll need explain why to your mortgage broker or lender. It’s important you can show your lender you are a steady, reliable person, so be sure not to debit online gambling and similar services from the same account you intend to use as proof of your ability to repay.
- Show that you live within your means
If you have an overdraft or a credit card it’s important to show that you don’t rely on them to make ends meet, otherwise this could impact on your efforts to show you can be relied upon to repay your loan.
- Verification of your credit history.
If you’ve missed bill or loan payments in the past or are unsure about your credit history you should obtain a credit report that you can share with your mortgage broker or lender. Log on to http://www.icb.ie/ and for a small fee your credit report can be sent right to you.
Keep this checklist handy to help you get mortgage ready:
- 3 months /weeks payslips
- six months current account statements
- six months saving bank account/Credit Union statements
- 12 months loan account statements, for all existing loans including existing mortgages
- your most recent P60
For further information about getting mortgage ready or discuss your situation with us, please click here to get in touch with our team.