6 Top Tips when applying for a Mortgage in Donegal
6 THINGS YOU WILL NEED WHEN APPLYING FOR A MORTGAGE
Getting a mortgage in Donegal
There is a perception that the Banks in Donegal are not lending, they are but your application when submitted must be presented correctly.
First thing you need to figure out before approaching a lender, is can you effort the mortgage you hope to get. A word to the wise, be careful what you wish for, when you get it, you may not want what you got.
A good guide line, for every €1000 you borrow, you will repay €5.30 per month over 25 years (ie. borrowing €100,000 over 25 years, 1000 X €5.30 = €530 per month). This is just an example.
Once you know what the mortgage will cost you, start and save that amount. If paying rent already, save the difference. That way you will know how if feels. Better to figure this out before getting the mortgage. On avg. you should not be spending more than 30% of your nett income on your mortgage repayments, lenders will allow that figure go to 35% of nett income.
A good guide on how much you can borrow is 3.5 times your income. (ie €30,000 income= €120,000). I stress this is only a guide line.
6 things you will need;
- To be in full time employment for at least 6 months or if self employed for at least 2 years.
- Wages slips, P60 or two years accounts and or an accountant report
- 6 months healthy bank accounts, no late or referral fees.
- 12 months loan statements for all existing loans, including existing mortgages
- A good credit history
- Proof of savings and affordability
You must to able to prove affordability; this is not just important to the lender but should be as important to you.
Your mortgage application is like your financial CV, so everything that can improve your CV is important.
Always get help from a professional advisor before approaching the lenders on your own, so find a trusted advisor in Donegal you would like to work with, one you can trust to work for you, and always deal with an independent advisor, there are a good number around Letterkenny and around Donegal, who can research the market and tell you were the best offers are?
Remember the lenders will only tell you their offering, a good financial advisor will be able to take through all lenders and their offerings
As part of the mortgage requirements you will also need to put in place Mortgage Protection and House Insurance, you should not take these from the lender as more often than not there are cheaper options available. Again a good independent advisor will research the market for you.
The above if for information purposes only and does not constitute financial advice in any, we recommend that you speck with us before making any financial decisions.
We recommend a holistic approach to financial planning and we can help you put your plans in place.
Advice First Financial Services Ltd t/a Advice First Financial is regulated by the Central Bank.