Looking for your first home?
Here are some mistakes that every First Time Buyer will want to avoid.
Its never easy navigating the path to home ownership for the first time. It’s such a massive financial decision but also can be so emotive and personal. We can get so focused on the actual house, or the process that sometimes it’s easy to miss the important details that will make the process easier and more successful. We’ve put together some pointers here for you.
Your length of employment
You can still apply for a mortgage during your probation period and start the process but the bank won’t approve it until they have confirmation from your employer that you’ve passed probation. So changing job right before you want to apply for a mortgage usually isn’t the best idea.
No savings history
Mortgage repayments need to be paid on time, in full every month, which is why lenders go to such lengths to understand your financial history and income.If you’ve fallen into rent arrears, are showing referral fees on your current account or struggled to show you can save regularly then you’ll need to take control of your finances before applying for a mortgage so that you can avoid this first time buyer mistake.
Taking out another loanA good credit rating is essential when applying for a mortgage. Lenders need to know that you are financially responsible. Taking out a new loan or running up a huge credit card bill that you may not be able to clear, won’t be viewed favourably when you apply for a mortgage.
Forgetting about stamp duty & legal costs
To qualify for your first mortgage, you will need a deposit of at least 10%.
On top of this you will also need to have funds to cover the property’s stamp duty and legal costs.
Stamp duty is calculated at 1% of the selling price of a property up to €1m, and 2% on the balance above.
If you are buying a home worth €300,000, you will need to have stamp duty of €3,000 up front.
Legal cost vary and are usually based on the purchase price of the house.
At HC Financial we have been helping people like you get on the property ladder for many years. We can advise you on the best approach, the best rates on the market and what would suit your particular means, circumstances and objectives. All explained simply, straightforward and with a friendly professional approach.
Call Fiona our Mortgage Advisor today and make your first step towards buying your home
T: 091 788000. E: email@example.com