First Time Buyers

Before you even begin house-hunting, you will need to know how much you can afford. Your application for a mortgage will be rejected if you cannot afford your mortgage repayments. Another reason is that if you can provide a higher deposit for the house you will buy, the amount you need to borrow will be less. The interest rates will also be lower. The lender will also consider how much you can pay by reviewing your current expenses and income.

Aside from the ability to pay the lender, they also want to know your creditworthiness by checking your credit score. This is affected by many factors, including the way you pay your bills and the amount of your monthly spending on your credit card. To avoid surprises when you are applying for a mortgage, make sure that you know your credit score beforehand. If it doesn’t look good, you need to spend more time building up a good credit history before buying a house.

A mortgage in principle is an agreement from the lender that they will give you a set amount but only in theory. It is a way to show that you can secure financing for the property you are interested in. When the property is hot, the chance of getting it will be high if you can show the seller the agreement. Once you have made a deal with the seller, you still need to apply for a mortgage and the lender will consider this property.

Lenders can have different schemes that can help first-time home buyers. While they are offering this to you, make sure that you understand the exceptions. Check what is the requirement and see if you qualify on any of these schemes.

During the process of house-hunting, you may be up against the competition and get tempted to offer more, especially if this is your dream home. You need to stay within the range of your mortgage in principle or the range that you can afford. Make sure that you are not overpaying. The lender used this home as security against the amount of the loan.

Application for a mortgage requires much paperwork, which the lender is painstakingly checking one by one down to the very last detail. If there is any discrepancy in your application, it could mean rejection if not a delay. To avoid this consequence, you need to check every supporting document that you are submitting are all correct and updated.

One of the requirements of lenders is proof of deposit and evidence where this money is coming from. If you tell them that you are saving up, they will ask for evidence of these savings like your last months’ bank statement. If you tell them that this is a loan from your parents, they will add this as a factor for your affordability.

If you are a first-time buyer who is a bit lost in applying for a mortgage, we advise you to hire a mortgage advisor. They can help you arrange all the documents and will help you improve your chance of getting your loan approved.

A first-time buyer in Ireland is someone purchasing their first home and who has not previously owned a property, either in Ireland or abroad. This status often makes you eligible for certain benefits, such as lower deposit requirements and government schemes like the Help to Buy incentive.

First-time buyer mortgages allow you to borrow a percentage of the property’s value, typically up to 90%, with the remainder paid as a deposit. Lenders assess your income, financial stability, and credit history to determine how much you can borrow. You’ll then repay the mortgage in monthly instalments over a fixed term, usually 20-35 years, with interest.

To qualify as a first-time home buyer in Ireland, you need to meet several criteria. You must not have previously owned property, either in Ireland or abroad. Lenders will assess your income and affordability to ensure you can manage the repayments. Additionally, you’ll need to save a deposit, which is usually 10% of the property’s value, and provide evidence of steady income and a good credit history. Certain government schemes, such as the Help to Buy incentive, may have additional requirements, such as purchasing a new-build home.

First-time buyers in Ireland are generally required to save a deposit of 10% of the property’s value. For example, if the home costs €300,000, you’ll need a €30,000 deposit. Government incentives like the Help to Buy scheme can assist with a portion of this amount for eligible buyers.

Qualifying as a first-time home buyer means meeting specific requirements set by lenders. You must be a first-time purchaser, which means you haven’t owned property before. It’s essential to save the necessary deposit, typically 10% of the property’s value, and show that you can comfortably afford the monthly repayments. If you’re considering government schemes like Help to Buy, additional conditions may apply, such as purchasing a new-build home and meeting certain tax-related criteria.

Most first-time buyer mortgages are intended for owner-occupied homes, meaning you must live in the property as your primary residence. Renting out the property typically violates the terms of the mortgage unless the lender explicitly grants permission or you switch to a buy-to-let mortgage. Always check with your lender for specific guidelines.