Saving For A Deposit/Mortgage Application

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gerprem08

Registered User
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Hi,

My wife and I are looking to buy a home.

We have modest savings and are looking to purchase a modest home (€150k).
Also, we are both in our early 40s and have never bought a home before.
We have 10% (€15k) saved already.

What are our next steps?

We both have individual bank accounts and savings (CU, etc).
Are we best advised to open a joint savings account?
If so, with what type of institution (Bank, building soc., bank?)

Cheers,
Ger
 
From a mortgage application perspective a joint account is not required.

The easiest way to see what you need for a mortgage is to go through the process. Start the process with your bank(s). Even with the best record keeping it can be a learning experience getting all the required materials together (bank statement, credit card statements proof of savings, bills, rent book, salary certs etc.). As with anything it pays to shop around but they all more or less have the same approach. A broker can help with multiple applications and assessments but it might be as easy to do it yourself. Applying to your current bank will help give you a base on which to expand your pool of offers..

Banks will want 6 months worth of history to get a sense of your financial position. They will want to see your salary going into your account and your monthly expenditure. The more detail you can provide the easier it will be for them to assess your financial position and the less back and forth required. Card transactions, direct debits and electronic transfers mean your expenses are easier to understand for banks. They will want to see what are regular expenses and what are one-off. a lot of ATM withdrawals will make it difficult for banks to create a paper trial. An understanding of your regular expenses and your income will allow banks to see what the maximum they think you can afford. From there they will workout an amount they will be happy to lend to you.

All going well they will offer you approval in principle - this is the amount they are willing to lend to you based on your financial position. Once you find a home and go sale agreed you can expect to them to assess the house. They want to make sure it's of good title to warrant the risk from their side.

In terms of the amount you can borrow the standard is 3.5 times your income. However the assessment of your income and expenses will determine if your loan offer is less, equal to or, more than 3.5 times your income. Age will be a factor here. As it will shorten your term (mortgages are generally expected to run until retirement age).

10% savings is a good start but banks will want to see more as you will have legal fees and stamp duty expenses associated with the purchase.

Best of luck, it's a bit daunting to begin with but should ultimately be worth it.
 
The first step is to apply for AIP.

Fort this you need:

6 months payslips
6 months current a/c statements
savings a/c statements
any CC statements
Maybe a salary cert from employer
 
Liam Ferguson has a great article on it here

Key Post - Preparing for a mortgage application

If you're considering applying for a mortgage in the future, there are some steps you should take now. If anyone wants to add to these, please do and they can be incorporated into the post. You are unlikely to get a mortgage if... You cannot show a history of being able to pay the proposed...
www.askaboutmoney.com

You should consider an Ulster Bank account for some of your savings.

First Time Buyers with an Ulster Bank Home Saver account can get an additional €2,000 "cash back".

Ulster Bank has launched a Home Saver Account https://digital.ulsterbank.ie/personal/savings/regular-savings-accounts/home-saver.html If you are a first time buyer and you take out an Ulster Bank First Time Buyer mortgage within 36 months of opening your Home Saver, you may be eligible for...
www.askaboutmoney.com
 
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