Mortgages

A quick step-by-step guide to the mortgage process

If you are a first time buyer, the mortgage process can seem daunting once you research your options, but it helps if you have a good mortgage broker. With over 35 years’ experience in the Mortgage Business Foskin Financial has access to all the major lenders so will save you time, money and stress by shopping around and getting you the best rate and a mortgage to suit your circumstances.

Step 1

The first step is to establish how much you can borrow. You may find that some lenders will lend your more, or less, than others as they all have different criteria and terms and conditions. Some lenders only lend up to 80% for first time buyers depending on the location of the property while others will lend up to 90% on a purchase price/ valuation of up to 200k and 80% of the balance subject to 3.5 times income.

Mortgages are more difficult to come by these days, but first time buyers now make up a greater proportion of those taking out mortgages since 2009.

We will need details of your earnings, any short term borrowings you have and details of your savings and rent payable. We will shop around to find the maximum mortgage available to you and issue you quotations over different terms and variable and fixed rates as this will help you to see if you are comfortable with the repayments.

  • The main documents you need to process your mortgage:
    • Three recent payslips.
    • Most recent P60.
    • Six months current account statements
    • Copy of drivers licence or passport.
    • 12 month statement on any short term loans you have.
  •   6 months credit card statements
    • Evidence of savings – 6 months statements.
    • Evidence of address – recent utility bill or bank or visa statement.
    • If you are self-employed you will require at least three years accounts and a letter from your accountant confirming that your tax affairs are up to date.

Step 2

When you have all the documents to hand Foskin Financial will help you fill out the application form and copy all your documents. This is also the opportunity to discuss whether you want a variable or fixed rate mortgage.
Once the application is submitted to a lender, you should have a decision within five to ten working days. Once you get a positive response you will be issued with a ‘loan approval in principle’.

Step 3

Contact a Solicitor and ask them for a quotation that includes their professional fee, VAT and outlay. Make sure you get this quote in writing.
You need to notify your vendor/estate agent of your Solicitor’s name and address so that the seller’s Solicitor can issue the contract to your Solicitor.

Step 4

Foskin Financial will arrange a valuation on the property and send the report to the lender. This will cost you approximately €130. Once the valuation is sent to the lender they will issue a Loan Offer within five to ten working days. A copy of the loan offer is sent to your Solicitor.
We will liaise with your Solicitor to check the conditions on the offer to ensure that everything can be complied with. Once you have received your loan offer, you are now in a position to sign contracts and mortgage documents.

Your solicitor will contact you to make an appointment to sign, explain the terms of your loan offer and go through any queries you may have. You will also at this stage agree a closing date, which will be the date that your cheque will issue and you can move into your new home.

Step 5

It will be a condition on your loan offer that you arrange a mortgage protection insurance policy to cover the amount and term of your mortgage, and also that the property be insured for the sum recommended by the valuer.

Foskin Financial will shop around and get you the most competitive quotes for both policies. Both policies will be required before your cheque is issued, so it is important to have them to hand at least a week before your cheque arrives.

If you have any medical problems, the mortgage protection policy could take about two or three weeks to sort out. We will submit these policies to the lender and liaise with the Solicitor so that all conditions of loan offer are complied with in order to get the loan cheque issued on time.

Your Solicitor will return all the signed legal documents to the lender and request your loan cheque. Once your Solicitor receives the funds from the lender it may take five days to clear if a cheque is received. However if the funds are transferred to the Solicitors Client account they may be available the same day. Your Solicitor will then close the sale on your behalf and you can pick up your keys to your new home.

For further information email us at foskinp@eircom.net

WARNING: If you do not keep up your repayments you may lose your home.