Getting the keys to your own home is not only an incredible moment, but it’s also the end of the massive learning curve that is the home buying journey. By “learning curve,” we of course mean that the whole thing can be totally overwhelming at the beginning.
Between all this talk of solicitors, conveyancing and deposits, it’s a journey that would be made a lot less daunting if someone mapped it all out for you.
You’ll be glad to know that this is where we come in. We’ve teamed up with Bank of Ireland to bring you the ultimate first-time buyer’s guide, covering everything from how you can get yourself mortgage ready right up to the moment you walk in the front door.
Early doors
Before we take a more detailed look at the ins and outs of purchasing your first home, it’s always a good idea to contact a mortgage specialist. They’re not only the ones who will know exactly what you need to do based on your circumstances, but it’s never too early to chat to one!
Once you have some level of expectation of what’s ahead of you, it’s a lot easier to start things off with a bit more confidence. Set realistic targets and focus on hitting them and try to avoid being too hard on yourself by making them too difficult.
Becoming mortgage ready isn’t going to happen overnight, so be sure to come up with a plan that gives you ample time to get there. Start putting away a few bob from your salary every month, or see if you can chip away at any debts you have so you can start on a clean slate.
If you feel like you are making headway towards your deposit, it’s worth finding out how much you can borrow and what your options are.
Once you know how much you can borrow and feel ready for a mortgage, it’s time to apply. Bank of Ireland offers a few different ways for you to go about applying:
- Online: via the mortgage hub, where you can fill out your application online with help from the homebuying team.
- Phone: by speaking with one of their mortgage specialists.
- In person: face to face in your local branch with a mortgage specialist.
Doing the groundwork at this stage will pay off, but it’s worth reiterating that you need to give yourself time to make it work. If you’re at the beginning of your mortgage journey and need advice on where to turn, check out our guide on starting off the process here.
Steps along the way
After the initial application, the next stage is getting approval in principle (AIP). What this means is that your mortgage provider has acknowledged how much they would lend you based on the information you have provided (bank statements, income, etc.).
You’re now armed with the knowledge of what mortgage you can obtain. You can now start looking at potential locations, and once you’re in a position to bid on a house you can put down a deposit to secure it (usually 2-5% of the price, and refundable until contracts are signed) and arrange a formal offer letter.
Once you get the property professionally surveyed and evaluated, the next thing you need to do is find a solicitor to draft up the deed and ensure documentation is in order.
With all that in mind, it will work out as something like this:
- Application: You send your mortgage provider the info they need.
- Review by provider: They will review said information.
- AIP: The mortgage provider outlines the amount they would agree to offer as a mortgage.
- House hunting: Embracing DAFT as the most used app on your phone!
- Deposit: You secure the home you want.
- Evaluation: That property is surveyed and evaluated before you purchase.
- Offer: Finally, you put in an offer on the home you want.
- Sale agreed: What happens if the offer is accepted.
- Legal stuff: The solicitor will start drafting up the deed and the bank will formally offer you the agreed mortgage.
- Get the keys: Once everything is in order, it’s time to start thinking about how you want to celebrate becoming a homeowner!
This is a very brief outline of how you go from dreaming of owning a home to finally getting the keys, but another important aspect is making sure you know what supports are available. It would have been great if we were clever enough to create a list that rounds up into a memorable acronym, but ARAHDEOSLG doesn’t really roll off the tongue, does it?
Help to Buy
It’s called Help to Buy (HTB) for a reason, folks. This is by far one of the most helpful supports you can apply for as a first-time buyer, as it can help take some of the financial pressure away from you.
Essentially, it is a government tax refund on Deposit Interest Retention Tax (DIRT) paid over the past few years, which can be to the tune of up to €30,000 or 10% of the property’s value. You really should find out if you’re eligible for this one, so find out more here.
First Home Scheme
You can tell they wanted to make it obvious who these schemes are for! Similar to HTB, the First Home Scheme can prove hugely effective in bridging the gap between you and your mortgage.
It works slightly differently and hasn’t been around for as long, but effectively it can make up the difference between the amount you have saved up and what you need for a mortgage deposit. The bank will take up an equity share of the property of up to €30% of the property’s price, based on the percentage you requested towards the deposit.
We’ve teamed up with Bank of Ireland to help guide you through the home buying journey. Keep your eyes peeled for more, we’ll be doing a spot of mortgage mythbusting next time around!
To get up to 3% Cashback, apply for a mortgage with Bank of Ireland.
The special Cashback Plus offer comes in handy when you need to pay for professional fees or to help furnish your new home. You’ll receive 2% of your new mortgage back as cash from Bank of Ireland after you draw down your mortgage and an additional 1% of your mortgage back in cash in 5 years’ time subject to meeting the conditions of the mortgage.
To find out more, visit the website here.
Featured Image Credit: Bank of IrelandTopics: Ireland
Shane Winckworth