Mortgage lending is well established in Ireland, and many families use it to purchase homes. By registering a mortgage loan for the purchase of real estate, you will greatly increase the price range of the property you’re buying.
The country’s law does not limit foreigners’ ability to buy real estate, and non-residents can receive a mortgage loan on almost the same terms as citizens. Banks, on the other hand, are not particularly risky. After all, a piece of real estate serves as a guarantee and collateral for a loan. Furthermore, Ireland’s real estate market is well-developed; housing is in high demand, and prices are steadily rising.
The average market interest rate on mortgage loans now ranges from 2 to 3.5%, which makes the interest in obtaining a mortgage significantly increase.
So what is the fastest way to get a mortgage in Ireland nowadays?
Get a good credit score
If you have lived in Ireland for a long time, you should have a credit score. Therefore, before applying for a mortgage, it is a good idea to find out your credit rating in order to assess your chances of getting financing.
Calculate your budget
With the receipt of a mortgage loan, your life will inevitably change. Use a loan calculator to estimate your future expenses.
Don’t change job until the mortgage is approved.
From the bank’s point of view, the longer you have worked for your current employer, the more reliable you are as a borrower. It is highly undesirable to change your place of work if you plan to apply for a loan in the near future. Most lenders prefer that a potential borrower has worked at the current location for at least three and preferably six months.
Get rid of debt
Lenders such as Banks are unlikely to welcome candidates with significant credit card debt and other financial burdens. Try to reduce them to a minimum – this will characterize you as a responsible borrower and, therefore, increase the chances of faster obtaining a loan.
Get a reference from the employer.
All potential lenders will want to see your earnings over the past few months. Therefore, you will need documentary evidence of your income. Before applying for a mortgage, be sure to get a tax form.
Save up for your first installment.
The larger your initial deposit, the wider your choice among the offers from banks and other lenders. Lenders are more sympathetic to those who have saved up a significant down payment. The minimum down payment is 10% of the cost of housing.
Don’t fuss
If you have already submitted a loan application to the bank, wait patiently for its response. Do not fuss and adjust the numbers in the hope of improving your chances – rather, this will have the opposite effect and postpone the approval period for your application indefinitely.
See a mortgage broker.
If you are tired of going through the offers of banks or are not quite sure about your financial situation, a mortgage broker can be your salvation. A broker will not only help you save time but also find the best deal for you on the mortgage market. Mortgage broker services are usually free.
By following these points, getting a mortgage in Ireland will become much faster and easier. And lenders will be sure that you are a good borrower!
Written by Bader Albader, market researcher.