|
Buying your first home is one of the most exciting yet stressful times of your life. Finding a property, employing a solicitor, arranging the finance, it can all be a little daunting.
Offering independent professional advice, ZINC Financial is here to help you with all your mortgage questions, assessing your mortgage requirements, and finding the right mortgage for you.
So why not take the first step and pick up the phone and call ZINC Financial on 1890 570 570.
What Should I do First – Find a House or Find a Mortgage?
You are better off to find a mortgage first before looking at finding a house. In doing this you will know exactly what budget you have to spend on your first home, and you know the exact costs for this borrowing.
How Much Can I Borrow?
You can borrow up to 100% of the value of your purchase, provided you meet the 100% lending criteria. Most borrowers take out 92% mortgages or less, as interest rates these days can be directly linked to the size of the loan to the value of the house, the lower to loan to value the better.
Salary levels and existing savings are directly related to your borrowing ability, with existing borrowings or other commitments impacting on your borrowing ability. Our experienced sales advisors can advise you on all aspects of how much you can borrow, and advise you on the best way forward to obtaining that mortgage.
How Much Will My Repayments Be?
Mortgage repayments are dependent on the following three items:
- Size of Mortgage
- Term of Mortgage
- Interest Rate
- Our Mortgage Repayment Calculator will let you know exactly what your monthly repayments will be.
What is Loan Approval?
Loan Approval is an initial approval from the bank informing you that you have qualified for a mortgage of a certain amount. All loan approvals will have conditions attached to them that will be relayed to you by your broker. Once all the conditions of the loan approval are satisfied a loan offer will be issued. The loan offer will be sent to your solicitor and to yourself, and a cheque will issue when all conditions of the loan cheque are issued.
Do I Have to Pay Stamp Duty on my First Purchase?
Being a First Time Buyer, you don't have to pay stamp duty on your first time purchase whether it is a new house or a second hand house. Please ensure that both parties are First Time Buyers, not just one of you.
What is Mortgage Interest Relief?
Mortgage Interest Relief is a deduction from your mortgage repayments, directly related to the mortgage interest paid on a mortgage for your primary residence. The mortgage tax relief is paid directly by your lender through a deduction from your mortgage repayments, and is dependent on the status of the individual. The following table outlines the status of the individual and the rates applicable to each instance.
Mortgage Interest Relief Rates
|
|
First Time Buyer |
Other |
|
|
01.01.07 – 31.12.07 |
From 01.01.08 |
From 01.01.07 |
|
Single |
€8,000 |
€10,000 |
€3,000 |
|
Married / Widowed |
€16,000 |
€20,000 |
€6,000 |
Which Mortgage Lender is Right for Me?
Finding the right lender for you is determied by your individual circumstances. Different lenders offer different options to customers, with some lenders offering different products and interest rates. That is why it is in your interests to use a mortgage broker, as they will know the right lender for you.
What Documentation do I need?
Mortgage lenders demand alot of information so please bring along the following documentation to your first mortgage meeting. This will speed up the entire mortgage process.
- Passport
- Proof of Address (original utility bill x 2)
- Bank Statements (last 6 months)
- Payslips (last 3 months)
- Loan Account Statements (if applicable)
- Evidence of Savings
What Additional Costs are Involved in Buying a House?
There are a number of additional costs involved in buying your first house and they can be listed as follows:
- Valuation Fees - usually about €127 for initial valuation and another €75 for final valuation.
- Surveyor Fees - these will range from €350 - €500, depending on the strucutural engineer. It is advisable for a surveyor to carry out a survey on all properties, to ensure that you know what condition the property is in, and what potential works may be required.
- Solicitor Fees - these will range from €1,200 - €1,600 depending on the solicitor.
- Life Cover - this is compulsory for all private dwelling homes, with simple life cover starting from about .25% of the value of the property per annum. It must be pointed out that all life cover is dependant on a variety of circumstances that include the borrowers medical history, age, and smkoing status.
- House Insurance - this is necessary for all home purchases to cover fire and theft, and will be about .01% of the value of the house p.a.
|