GETTING MORTGAGE READY Consider related costs There are a number of other costs associated with buying a home, so these must also be considered when saving or applying for a mortgage. They include: • Stamp duty – the current rate is 1% of the purchase price up to €1,000,000; and 2% of any value over that. • Bank valuation – your Lender will require an independent valuation by a professional valuer. • Legal fees – this can be a flat fee or a percentage of the purchase price; you must agree this with your Solicitor before you engage their services. • Broker fees – if you are employing a broker to find you the best mortgage, you may be charged a fee for this service. Homebond covers your new home for 10 years against structural defects. You can however arrange for your own structural survey which is an additional cost. You will also be invited to carry out a snag of the home prior to closing the sale. You can prepare this yourself, but many people choose to appoint a professional snagger, which would be an additional cost. Gather your employment records In general, Lenders are looking for applicants with a solid and steady income. This means that you must have finished any probationary period, be fully permanent and demonstrate at least 6-12 months continuous employment. If your monthly wage includes overtime, bonuses and commission, a percentage of these may be considered by some Lenders. If you are self-employed, a Lender will want to see two or three years’ tax returns or audited accounts. To get yourself ready for applying, get the following paperwork ready: • A current or most recent P60 confirming your salary. • A completed salary certificate from your employer detailing basic and variable remuneration. • Three recent payslips. • A completed Form 11/Chapter 4 and tax clearance certificate (if self-employed).
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