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What Happens After I Get Mortgage Approval?

couple-keys

19 Oct 2018

Posted in:  First Time Buyer and Mortgages

There’s no doubt about it, buying a home is one of the biggest steps you’ll ever take. And (despite the paperwork) it’s also one of the most exciting! If you’re lucky enough to have been recently approved for a mortgage; congratulations. Now it’s time to find and secure your dream home, put in an offer, and hopefully get your hands on those keys. Here’s a rundown of next steps...

House-Hunting

You may have been ‘approved in principle’, meaning your bank has reviewed your situation, and let you know how much you can borrow. It’s not the official mortgage contract, but approval in principle with AIB stays valid for 12 months*, leaving you free to start house-hunting. Remember, if you opt for a new build, you may qualify for the government’s Help to Buy (HTB) scheme, meaning you can claim a maximum of 5% of the property value up to €20,000.

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Make an Offer

Found a home you love? You can put down an offer at this stage, but be sure to have a surveyor check the property out before proceeding further. They’ll be able to spot any damp, cracks in the walls, infestation issues or faulty wiring. Once you’re satisfied the house or apartment is structurally sound, you can proceed with putting down your deposit.

Find a Solicitor

If you haven’t secured a solicitor yet, now’s the time. They’ll be doing most of the dealings with the seller or builders’ solicitor on your behalf, so make sure they’re reputable. Ask around; friends who’ve recently been through the process should be able to point you in the right direction. Next, inform the bank once you’ve made an offer; they need to know the property details, including its value. This can be easily arranged by calling our Central Valuations Team on 1890 100 051.

Sign the Offer Letter

When the bank is happy they’ve received all the relevant property details, they’ll issue a formal offer letter to you and your solicitor. This is the official contract, so review it carefully together. Once you’re both happy, sign and return it to the bank.

Mortgage Protection & Home Insurance

You’ll need to have both mortgage protection and home insurance in place before the mortgage amount is transferred to your solicitor. Our AIB Financial Advisors will be happy to discuss your life / illness cover and income protection options. We’ll also give you 30% discount on home insurance if you’ve been claims-free for three years or more**. Once those details are confirmed, you can draw down your mortgage.

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Happily Ever After

Once you get the keys, you’re free to move in to your new home! We understand that you’ll need to buy the essentials; bed, couch, kitchen appliances. That’s why with AIB you have the option to defer your repayments for the first six months^, using that hard-earned cash to make your new home your own. Visit our website for more details on our offering, and click here for a handy mortgage checklist.

 

*To move to a Letter of Offer on a selected property after month 6 we’ll ask you to verify that your financial circumstances have not changed. Lending criteria, terms and conditions apply.

**Subject to a minimum premium of €157.50. Terms and conditions apply.

^New owner occupier mortgages only. Repayments will increase over the remaining loan term. Excludes movers in negative equity and self builds.

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.

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