Mortgaging your property can be scary. There are various documents required when applying for a mortgage, in Ireland. Add to that the process can take anywhere from six to twelve months to get your mortgage approval, mortgaging your property can be lengthy and tedious. Fear not, however, for this article will take you through the documents you will need to have to make sure you get the right mortgage for you.
Before you begin the hunt for potential properties, an “approval in principle” should be attained. Simply put, an approval of principle is a document from potential lenders that will let you know if you passed the screen of approval of your mortgage application. it will also let you know an estimate of the number of funds you may be lent.
After you have received your “approval in principle” then you can start applying for mortgages. you may opt to either deal with your bank directly or use a mortgage broker as a middleman to act as your representative.
The first document you will need is an identification card or some form of ID, and your Personal Public Service Number. This will confirm your identity in case of fraud. Always remember to keep a copy of anything that you may give or receive from your lender. This will ensure that everything is accounted for and well documented should there be legal issues.
Proof of income is also required such as your latest P60 tax form or your last payslip. Your lender will require these documents to lessen the risk from their end and to ensure you have enough money to pay the down payment and to pay any subsequent costs that may occur such as interest payments.
You may be asked to present your account statements to your lender so that they have evidence on how you manage your money. This will help them feel more secure about granting you a mortgage. You may be asked to provide accounts statements anywhere from the last three to twelve months.
Now that you have all the required documents, do not commit to one lender even if you have experience with them. Take your time and apply to multiple lenders. When you get their offers you can now compare the rates in the agreements, and find the one you are most comfortable with.
Some lenders may try to attempt to entice you with offers of cashback or other small perks. Keep in mind these kinds of mortgages may have higher interest rates to make up for those perks and cost you more in the long run.
Written by Bader Albader, market researcher.