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Securing First-Time Buyer Mortgage Pre-Approval In Ireland
Securing mortgage pre-approval in Ireland is an incredibly exciting experience for first-time buyers. It marks a significant step on the journey towards homeownership, one that clarifies your borrowing capacity and enables you to make a confident offer on your ideal property.
At the beginning of the mortgage process, getting to the pre-approval stage may seem like a distant dream, but with careful planning and preparation, the path towards this milestone can be accelerated and simplified.
Read on to discover our top tips on how to secure mortgage pre-approval as a first-time buyer in Ireland.
What is mortgage pre-approval?
Also known as approval in principle (AIP), mortgage pre-approval indicates the amount a lender may be willing to offer you based on your current financial situation. Although it is not a formal mortgage offer, it demonstrates to sellers and estate agents that you are a serious buyer who is financially prepared.
Mortgage pre-approval also encourages you to concentrate your property search on homes that fall within your realistic budget.
Depending on the lender, mortgage pre-approval is typically valid for between six and 12 months.
Despite new entities on the mortgage landscape promising to shake things up (think Revolut, which recently confirmed plans to launch its mortgage product in Ireland, which reportedly includes instant approval in principle), old-school preparation is the key to success in the context of mortgage pre-approval.
How to secure mortgage pre-approval in Ireland
To improve your chances of getting swift pre-approval, there are several proactive steps to take:
1. Consult an experienced mortgage broker
Engaging with an experienced mortgage advisor can provide invaluable assistance when seeking mortgage pre-approval.
In the initial stages, an advisor will help you to prepare your application by ensuring all documentation is accurate and complete.
Additionally, a professional and reputable firm will have access to a wide range of lenders, which will improve your chances of finding products that suit your specific needs. They can present your application in the best possible light and handle any queries from lenders on your behalf, increasing the likelihood of approval.
2. Get your finances in order
Understanding how much you can realistically afford to borrow should be the next step towards mortgage pre-approval. This is where your mortgage advisor will once again come to the fore, helping you to assess the overall picture, from your income, savings and credit history, to any existing financial commitments you may have.
This will enable you to evaluate your finances against the mortgage measures set out by the Central Bank of Ireland. Under current rules, first-time buyers can typically borrow up to four times their gross annual income (combined for joint applicants), and are required to provide a minimum deposit of 10% of the property’s purchase price.
3. Compile the necessary documentation
Having the right documents readily available and in order can significantly expedite the pre-approval process. Here’s a look at what you will need to hand over:
- A valid form of photo identification, which can include a current passport or driver’s licence.
- Proof of address in the form of a recent utility bill or bank statement dated within the last three months.
- A minimum of six months’ worth of personal bank statements or business account statements, depending on the employment status of the applicant.
- Proof of income through recent payslips, an employment confirmation letter, and relevant Revenue documentation, such as Employment Detail Summaries or P60s.
- Additional documents will be required from self-employed applicants, including two to three years of Revenue Notices of Assessment and a valid Tax Clearance Certificate.
4. Submit your application
Once your documents and application are in order, your broker will submit all paperwork to suitable lenders, who will then issue your mortgage pre-approval once they are satisfied with all the information received.
How to improve your chances of mortgage pre-approval in Ireland
To improve the likelihood of securing pre-approval, it’s crucial to adhere to the following:
- Get advice from your broker on existing loans and whether they might be a hindrance to an application
- Maintain financial discipline by avoiding large purchases or new credit applications during the entire pre-approval process, from pre-approval to drawdown!
- Show consistent saving patterns and the ability to manage current financial obligations to prove your ability to make and maintain mortgage repayments.
- Leverage government initiatives, such as Help to Buy and the First Home Scheme, which can help to bridge the gap between your mortgage and the price of a new home, making homeownership more attainable for young first-time buyers.
Get mortgage pre-approval in Ireland with our help
Securing mortgage pre-approval is a foundational step in your journey to homeownership. At Symmetry Financial Management, we understand the importance of this milestone and take pride in helping our clients to reach it with as little stress as possible.
Through our first-time buyer mortgage service, we aim to get you the best rate available and make the entire pre-approval process a smooth one. We provide:
- Tailored advice and personalised guidance based on your unique financial situation.
- Comprehensive support from the initial consultation to securing pre-approval, during which time we assist with documentation, lender selection and application submission.
- Ongoing assistance even after obtaining pre-approval, guiding you through property selection, final mortgage approval and closing.
For more information or to schedule a no-fee consultation, contact our team today.
If you’d like a free, no-obligation consultation for your mortgage, pension or financial needs, get in touch here, call us on 01 6831673 or email us directly on info@symmetryfinancial.ie.
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