How to Build a Step by Step Mortgage Plan

Like most big tasks in life, a mortgage is best taken step-by-step. But if you’re just starting your mortgage journey you might not be sure where to begin. Which is why we’ve put together this guide on how to build a step-by-step mortgage plan. Just follow these steps, and you’ll have the keys in the door of your dream home sooner than you think.

Step 1 - Talk to an AIB Mortgage Advisor

If you’ve just started thinking about getting a mortgage, making an appointment to see an AIB Mortgage Advisor is a great first step. They’ll be able to help you plot out a roadmap for your mortgage journey, from how to put together a savings plan to the paperwork to quoting you for Life Assurance, Payment Protection and Home Insurance. There’s no question too big or small for our expert advisors, so make an appointment to talk to one today.

Step 2 – Find Out How Much You Can Borrow

You may not have gotten as far as looking for a house yet, but knowing how much you can borrow is a great way of focusing your energy. Our online Mortgage Calculator is the quickest and easiest way to find out – with a few clicks of a mouse (and a few straightforward financial details), you’ll be able to find your magic mortgage number.

Step 3 – Start Saving

Starting to save for a mortgage can seem like an impossible task, but having a specific target to aim for will make things much more manageable. And the best way to get a grip on your savings is to open a savings account. At AIB, we have a whole host of savings accounts which can help turn that little bit each month into a mortgage deposit sooner than you think. We’ve also picked out some more mortgage saving tips here to help you get on top of things.

Step 4 – Get on Top of the Paperwork

One of the key aspects of getting a mortgage is having all the correct paperwork – especially relating to your ability to repay the mortgage. In order to get approved by AIB, you’ll need to show us proof of a regular income and proof of employment. We’ll also need to see proof of your ability to save (which you should already have taken care of by opening an AIB Savings Account) and info on any existing borrowings. Your AIB Mortgage Advisor will be able to detail all the paperwork you need to make sure your application goes as smoothly as possible.

Step 5 – Getting the Sanction in Principle

Before you start viewing properties, we generally advise our customers to get a Sanction in Principle. This is a document which tells agents that AIB has agreed to give you a mortgage in principle up to an agreed amount.

Step 6 – Looking for a Property

Once you’ve got your Sanction in Principle, it’s time to start looking for your new home! Of course, there are a lot of factors you’ll want to consider when choosing a place to live, but to give you a head-start, we’ve compiled some tips on what to look for in a neighbourhood right here.

Step 7 – Making an Offer

Once you’ve settled on the home of your dreams, it’s time to make an offer. And once that’s accepted, you’ll need to put down a booking deposit. This is completely refundable up until the moment the contracts are signed, but it does prove to the buyer that you’re serious in your intentions. Once that’s all sorted, you’ll need to provide us with a few details about the property, your solicitor’s details and a valuation report before we can provide you with a Letter of Loan offer.

Step 8 – Getting the Contract for Sale

You’re almost there! The Contract for Sale is the legally binding agreement you make with the seller of the property. It will set out the agreed price and a completion date, if the property is still being built. Once you’ve had your solicitor review the contract, you’re ready to sign. You’ll then agree on a closing date and return the contract to the seller.

Step 9 – Receiving the Loan Funds

A few days prior to completion, your solicitor will request the loan funds from the lender and arrange for the completion of the purchase. And you are now the proud owner of your own home.

Step 10 – Put the Kettle On

Considering a Mortgage in 2019?

Take the first step on your journey by talking to one of our expert AIB Mortgage Advisors.

Allied Irish Banks, p.l.c. is an authorised agent and servicer of AIB Mortgage Bank in relation to the origination and servicing of mortgage loans and mortgages. Allied Irish Banks, p.l.c. and AIB Mortgage Bank are regulated by the Central Bank of Ireland. Copyright Allied Irish Banks, p.l.c. 1995.