Buying your first home is one of life’s most exciting milestones, and it often brings a wave of emotions. When you buy your first home you will experience, joy, excitement, and a sense of security you don’t always get when renting or living with parents.
But where do you start? How to be mortgage ready?
Getting mortgage ready doesn’t have to be daunting. With the right approach, you can be well-prepared for the mortgage application process and one step closer to owning your dream home.
If you’re ready to climb the property ladder in 2025, here’s our ultimate guide to getting mortgage ready, whether you’re a first-time buyer or simply interested in learning more about the mortgage process.
Speak to a Mortgage Broker or Bank
Below are the steps I would advise you to follow when getting ready to apply for a mortgage. However, before you even start, I would recommend speaking to a mortgage broker. A Mortgage Broker will offer invaluable help and advice on how to get mortgage ready, the mortgage application process, the types of mortgages available, and how much home you can afford. Getting ready for a mortgage application can take time so it is important to speak with a mortgage broker as early as possible.
Having an expert Mortgage Broker on your side is key to help you navigate the following home buying steps. Read this post about the differences between a mortgage broker and a bank.
Set a Budget and Start Saving
Before diving into the mortgage process, it’s essential to have a clear understanding of your finances and a solid savings plan in place. Setting a budget will not only help you manage your finances better but will also help you determine how much you can afford to borrow and repay each month.
Start by creating a budget that outlines your monthly income, expenses, and savings goals. Good financial advisors recommend the 50/30/20 rule:
- 50% of your income goes toward needs, such as rent, utilities, and groceries.
- 30% goes toward wants, like dining out and entertainment.
- 20% is set aside for savings or other financial goals.
If you’re saving for a mortgage, consider increasing your savings rate to reach your goal faster. While budgeting can mean making sacrifices, it’s important to find a balance that allows you to enjoy life as you work hard toward homeownership. Prospective first time buyer mortgage applicants often move home with parents to help save for their home deposit. This is not possible for everyone but if you can do this and live rent free for a while then that will no doubt boost your savings. The ultimate goal is to save as much as possible to get ready to apply for a mortgage.
Check Your Credit Rating and Organize Your Bank Accounts
Your credit rating plays a crucial role in getting mortgage ready. Before you apply for a mortgage online, check your credit rating at the following public website www.centralcreditregister.ie
Once you have a copy of your Credit Report then take steps to improve it if necessary. Actions like paying off existing debts, avoiding late payments, and keeping credit card balances low can significantly boost your credit rating.
In addition, organising your bank accounts is a fantastic way to stay on track financially. Open a separate dedicated savings account for your home deposit. This will make it easier to monitor your savings progress and keep your funds safe from everyday spending. It is important your savings build up without any withdrawals. Mortgage lenders will also love this later when underwriting your mortgage application.
Explore Financial Support Options for First-Time Buyers
In Ireland, first-time buyers can benefit from several government schemes and grants designed to make homeownership more accessible. These include:
- Help to Buy Scheme: This scheme provides a tax rebate of up to €30,000 toward your deposit when purchasing a new build.
- First Home Scheme: Under this scheme, the government provides up to 30% of the market value of your new home in exchange for a share of the property’s equity. This share reduces to 20% if you’re also using the Help to Buy Scheme.
Taking advantage of these incentives can make life easier for you. However please note these schemes are not available for 2nd hand homes, only new homes. Researching these financial supports is a great way to maximize your buying power, get mortgage ready and give yourself a head start on the home-buying journey.
Gather All Necessary Documents
To streamline the mortgage application process and ensure you’re getting ready to apply for a mortgage, it’s essential to gather the necessary documents in advance. Lenders will typically request documents to verify your identity, employment, and financial status. Commonly required documents include:
- Proof of identification – Passport or Driving License
- Proof of address – Utility bill or bank statement
- Proof of income – Salary form completed by employer, payslips, and Revenue Employment Details Summary.
- Bank statements (usually from the past six months)
- Credit card and loan statements.
If you’re self-employed, you may need additional documents, such as business accounts and tax returns. Collecting these documents early ensures that you’re getting mortgage ready and fully prepared when it’s time to apply for your mortgage.
Confirm Employment Details
A stable source of income is crucial when applying for a mortgage and understanding how to get mortgage ready includes ensuring that you can provide the necessary documentation. Most lenders will ask for information on your current job title, salary, and length of employment. In addition, you will need to provide a stamped and signed Salary Certificate from your employer or HR department.
If your employment situation changes, be sure to notify your mortgage broker or lender as soon as possible, as this could affect your mortgage application.
Obtain Approval in Principle
Before you start house hunting, it’s a good idea to get Approval in Principle (AIP) from a lender. This conditional offer gives you an estimate of how much you can borrow and is usually valid for around six months. While it’s not a final mortgage offer, having an AIP shows sellers that you’re a serious buyer with access to financing. It also helps narrow down your property search to homes that fit your budget.
At MortgageLine, we make it easy to get started and ready for your mortgage application. We help you get a fully underwritten mortgage Approval in Principle. This will enable you to have a clear picture of your buying power so you can bid on potential properties with confidence.
Research Mortgage Rates and Apply Online
When getting mortgage-ready, it’s essential to research mortgage rates and options available to you. Shopping around and comparing different rates ensures you’re getting the best deal possible. Working with a mortgage broker can simplify this process, as they have access to a wide range of mortgage products and can match you with one that suits your needs. The benefits of using a mortage broker.
Once you’re ready, applying for a mortgage online can be a convenient and straightforward option. Many lenders, including MortgageLine, offer online mortgage applications that allow you to submit your documents and track your progress from the comfort of your own home.
Consider Future Home Maintenance Costs
As a new homeowner, it’s important to plan for ongoing property maintenance expenses. From routine repairs to unexpected issues, maintaining your home will require time and money. Factoring these costs into your budget can help you avoid financial surprises and keep your home in excellent condition.
Think of home maintenance as an investment in your property’s value. Simple tasks, such as regular cleaning, painting, and repairs, can extend the life of your home and increase its long-term value.
Connect with a Mortgage Broker for Help
Getting mortgage-ready is much easier when you have an expert on your side. A mortgage broker can guide you through the entire process, from initial budgeting and credit checks to comparing mortgage products and finalizing your application. At MortgageLine, we specialize in helping Irish first-time buyers get mortgage-ready, offering personalized support from your very own dedicated mortgage broker, every step of the way.
Our team understands the Irish mortgage market and is committed to helping you achieve your homeownership goals. Connect with us today to start your journey to owning your first home!
With these steps, you’ll be well on your way to getting mortgage-ready and buying your first home in 2025. From budgeting and saving to exploring financial supports and finding the right mortgage, each step brings you closer to your dream home.
Ready to get started with your mortgage so you can buy in 2025?
If you’re ready to talk with an experienced Mortgage Adviser, then get in touch with MortgageLine today for a free no-obligation chat!
Apply Online or Call Us on 01 707 9880
