Getting mortgage approval for First Time Buyers - earnest

Getting mortgage approval for First Time Buyers

House Key

Being prepared is key when it comes to applying for a mortgage. See our MAP to guide you through all the “bits n bobs” you’ll need to get onto the property ladder.  

The important bit: How much can I afford to borrow?
Before you apply for a mortgage you must have a clear indication of how much money you can afford to borrow vs how much you want to borrow.

For instance, if you go to the bank looking for a mortgage for a house being sold for €300,000, you must have a minimum of €38,000 to offer as a deposit. Each bank has slightly different guidelines, so this minimum deposit changes from bank to bank, so shopping around is obviously worthwhile.

Please see some snippets from different banks guidelines below:

AIB
As a First Time Buyer you will require a deposit of at least 10%. AIB can offer 90% Loan to Value up to €220,000 and over this amount 80% Loan to Value is available, with 75% maximum for a one-bedroom apartment.
graph
Ulster Bank
For First Time Buyers, if the value of the property is up to and including €220,000 a maximum of 90% Loan to Value will apply. For values above this amount an 80% Loan to Value will apply thereafter – these limits may vary

BOI
For First Time Buyers, if the value of the property is up to and including €220,000 a maximum of 90% Loan to Value will apply. For values above this amount an 80% Loan to Value will apply thereafter – these limits may vary

KBC
10% deposit required up to €150,000.
20% deposit required over €150,000.

Different Online Mortgage Calculators
Most of the banks have an online calculator on their websites. This will indicate how much money you can ask to borrow. The amount comes down to your annual salary, how long you want the mortgage for, what kind of interest rates you choose, etc. Some are more accurate than others.

Check out some of them below:
AIB
Ulster Bank
BOI
KBC

Our MAP to Success

Our step by step Mortgage Approval Plan (MAP) makes prepping for a mortgage child’s play. As Estate Agents, we know the struggles of collecting all the different documents required for your first mortgage application.

Let us help you get off to a good start by following our MAP to Success:

  1. *6 continuous months of current account bank statements.
  2. The latest must no more than 3 months old..
  3. There are 6 months of savings statements or proof of a balance of funds required for the property.
  4. 3 months credit card statements required
  5. The latest must no more than 3 months old.
  6. *An up to date employee status report stamped by your employer within the last 6 months.
  7. Most recent P60 for each applicant
  8. (P60 from 2015 for 2016, P60 from 2016 for 2017, etc.)
  9. 2 Forms of Photographic ID for each applicant
  10. For example: Passport and Driver’s license
  11. Signed SEPA Declaration and credit reference search on the Application form. (Crucial)
  12. Your most recent term loan statements (if applicable)
  13. You most likely will need 2 original utility bills or bank statements
  14. All dated within the past 6 months.
  15. Separation Agreements or any other legal agreements
  16. Detailed estimations for any renovations (if applicable)

*documents must be originals

If you found any of the above helpful, or not, please leave us a comment. We appreciate any feedback we can get.

If there is anything you would like to see on our page, please let us know and we will try to put something helpful together on it.

 

0 0 vote
Article Rating
Subscribe
Notify of
guest

This site uses Akismet to reduce spam. Learn how your comment data is processed.

0 Comments
Inline Feedbacks
View all comments

Contact Us

Earnest,
48-59 North King Street,
Smithfield, Dublin 7

Phone: 01 872 8808
Fax: 01 874 7274
info@earnest.ie

Testimonials

Would highly recommend!
I have been dealing with the Dublin Letting & Property Management for the past three years. At all times, I…
Brian Hyland Ashbourne, Co.Meath

Opening Hours

Office opening hours:
Monday to Friday 9.30am – 5.30pm
Closed weekends & Bank Holidays