How to Get a Mortgage in 10 Simple Steps
19 Feb 2015
Posted in: Mortgages
One of the biggest decisions we all face happens when buying a new home. This doesn’t mean the process needs to be a hard one though and AIB has all the information you need here to help you become ‘mortgage ready’.
Whether this is your first step onto the property ladder or the big move to your dream home, there are a number of steps involved to getting a mortgage. We can help you with some of most pressing questions on your mind, such as how to get a mortgage and helping you calculate how much you can borrow.
Whether you’re an AIB customer or not, have a look at the checklist below and see what steps you need to take in order to get mortgage ready today.
Find out how much you can borrow
The best place to start is to take a look at your current financial situation and see how much you can borrow.
The easiest way to do this is to check out the eMortgage calculator which will give you a clear picture of how much you maybe able to borrow. You simply enter the relevant information required which includes your marital status, date of birth, number of dependants, income details per annum, total monthly outgoings and details about the property if you have one in mind
Get advice from a dedicated Mortgage Advisor
To make sure you’re on the right track you can also drop in or make an appointment with one of our AIB Mortgage Advisor,who would be more than happy to talk you through the process
Phone 0818 724 725
Where AIB’s Direct team will gladly answer any of your questions and queries, they can also take your application over the phone if you so wish.
Saving for your deposit
You’ll need to save a deposit of at least *10% to 20% of the cost of your new home. At the moment AIB offers up to 90% depending on; your current circumstances, and Loan to Value amounts up to €400,000. Over this amount we offer up to 85% Loan to Value; depending on your current circumstances, with 75% maximum for a one bedroom apartment.If you haven’t already why not start saving today. You can view our range of savings accounts here.
*10% deposit is required for First Time Buyer (90% LTV)
*20% deposit is required for Second Time Buyer (80% LTV)
Getting everything in order
The most important aspect of your application is proving you can repay the mortgage. An AIB Mortgage advisor can let you know exactly what you need to provide including payslips, bank statements, credit card bills or other documents.
A Sanction in Principle
Once your deposit is in place, you now apply for a Sanction in Principle. This involves the bank agreeing to give you a mortgage in principle based on the information you’ve provided. At this stage you will know exactly how much you have to spend on your new home. This can be done on the Online eMortgage Calculator, by calling in to any Branch or phoning 0818 724 725
Looking for and making an offer on a home
Now comes the exciting bit where dreams come true, looking for your new home. Once you’ve found it, you put in an offer. If it’s accepted, it’s back to your bank.
Once your offer is accepted
Let your bank know you’ve made an offer and now want to proceed in applying for a mortgage. You must provide details of the property, your solicitor and a valuation report from an approved valuer before the mortgage offer is sent.
Appointing your solicitor
A solicitor can be appointed before starting your search or after you’ve made an offer and received approval.
The Contract for Sale
The Contract for Sale is an agreement between the Buyer and Seller laying out the agreed price and planned completion date. This is dependent on checks and searches that your solicitor will carry out for you.
The loan funds
Shortly before completion, your solicitor requests the loan funds from the bank and arranges the transaction.
The final stages of the mortgage process may seem complex but fear not, AIB are here to help you through it.
Allied Irish Banks, p.l.c. is an authorised agent and servicer of AIB Mortgage Bank in relation to origination and servicing of mortgage loans and mortgages. AIB Mortgage Bank is regulated by the Central Bank of Ireland. For regulatory information, please see here.