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Getting Mortgage Ready: Tips for Future Homeowners. Hey there, future Irish homeowner! 🏠 Ready to start your mortgage journey and get mortgage ready? We’ve got you covered with some friendly advice and essential tips to help you prepare for your mortgage application.

Getting Mortgage Ready: Essential Documents for PAYE Applicants

Essential Documents:

  • Salary Certificate: Get this form completed by your employer.
  • Payslips: The most recent 3 months’ worth.
  • Revenue Employment Details Summary (EDS): Available from your Revenue MyAccount, showing the previous year’s earnings.

Pro Tip: Your payslips are crucial since they show your current earnings. For those with variable income (like overtime and bonuses), providing 3 years of EDS can help maximize your mortgage amount.

Getting Mortgage Ready: Bank Statements (6 Months)

Make sure to:

  • Pay on time with no missed or late charges.
  • Explain any cash lodgements and withdrawals.
  • Stay within overdraft limits and try to keep your account in credit as often as possible. Avoid constantly living in overdraft.

You’ll need to provide 6 months’ statements for all current, savings, and investment accounts.

Getting Mortgage Ready: Tips for Future Homeowners

Credit Card & Loan Statements

Getting Mortgage Ready: Credit Card & Loan Statements (6 Months)

Credit Cards: Stay within limits and make at least the minimum payments each month. Regular balances will be considered an outgoing or loan, potentially reducing your mortgage amount.
Loans: No missed or late payments ideally. If loans are ending or will be cleared before your new mortgage then great news, these repayments can help show your repayment capacity.

Demonstrating Repayment Capacity

To get mortgage ready, you’ll need a solid plan to show you can afford new mortgage repayments. Typically, you need to show about €600 per month of repayment capacity for every €100,000 you want to borrow. For example, for a €300,000 mortgage, you need to show about €1,800 per month.

To demonstrate this:

Rent Payments: These can help show repayment capacity.
Loan Repayments: Especially if loans are ending.
Savings: Regular monthly contributions to a savings account after payday. Avoid withdrawals to show a steady buildup.

Getting Mortgage Ready: Tips for Future Homeowners

You can check your credit history on the Central Credit Register 

Getting Mortgage Ready: Check Your Credit History

Your credit history is crucial. Get your credit report from Central Credit Register. This shows the last 5 years of repayment history on debts, loans, and credit cards. Any issues? Speak with a mortgage broker for advice.

For Self-Employed Applicants

You’ll need:

At least 2 years of accounts and business info.
Revenue Form 11s and Chapter 4 Self Assessments: Available from your ROS or Revenue MyAccount.
Getting a mortgage when self employed can be a little more trick so seek the advice of an experienced mortgage broker.

Talk to a Mortgage Broker Early to Get Mortgage Ready

We often speak to people who aren’t quite mortgage-ready and provide guidance to help them prepare. The sooner you chat with us, the better! We’ll help you get all your ducks in a row and ensure you’re ready when that perfect property comes along. Don’t just stick with your own bank – we’ll explore multiple lenders to find the best fit for you.

Talk to a Mortgage Broker early to ensure you’re mortgage ready. Reach out today and let’s make your homeownership dreams come true! 🌟 #MortgageReady #HomeBuyingJourney

This article ‘Getting Mortgage Ready: Tips for Future Homeowners’ was written by Stephen Hamilton.

Stephen Hamilton

Stephen Hamilton offers expert mortgage insights and solutions, empowering you to make informed financial decisions.