MORTGAGE ADVICE by Achill Island Property

Cash v Mortgage

While there have been reports in the media of late as to the prevalence of cash buyers in the Irish market, the traditional mortgage is still a massive part of the property purchase process for us mere mortals without an overflowing bank balance. But at what stage should you talk to your bank? What do you need to apply for a mortgage?

When should I talk to my bank?

When you make the decision to take your first step on the property ladder it can be daunting and everyone has their tuppence worth to add to the equation. However, preparation and forward planning can ease the stress and help simplify the process.

It is a good idea to talk to your bank at the earliest possible stage. ‘But I don’t know what house I want to buy’, I hear you say. True, but that initial conversation with your lender will give you an indicator of how much you will be able to borrow, giving you a clear guideline as to what will be in your budget.

If you can, apply for Approval in Principle for a maximum amount and then you know you are ready to go in the event of finding your dream home, subject to satisfying the formal criteria of a loan offer. This helps speed up the process for you as purchaser, because sometimes unfortunately, the mortgage application process can take a long time.

What paperwork do I need?

When chatting to your bank lender it can help make their job easier in advising you and speed up the process if you take a bit of time and collect some relevant documentation such as:

• 3 recent payslips for each applicant (PAYE workers) or 3 years accounts for a self-employed person
• A recent P60 (PAYE workers) or Form 11 (self-employed applicant)
• 6 months personal bank statements for each applicant (and 6 months business bank statements if self-employed) if the account is not with your potential mortgage lender
• Statements on any savings accounts (if not with the lender)
• Statements on any borrowings for each applicant

Your lender will appreciate the bit of effort on your part and this would help put you one step closer to your dream home.

Have you more questions?

Joe has over 18 years experience in mortgage lending as principal of Atlantic Life & Finance and while he cannot arrange a mortgage on a property you may purchase from us, in order to avoid a conflict of interest, he is available to offer advice and guidance on the mortgage application process. Why not give him a call and browse our properties for inspiration!

Achill Island Property is your property partner in Achill!