First Time Buyer 

A mortgage is a long-term financial commitment. You need to assess your finances and ensure that you can manage the repayments.

First Time Home Buyer in Kildare

A mortgage is a long-term financial commitment. You need to assess your finances and ensure that you can manage the repayments.

The Central Bank has set limits on the size of residential mortgages.

We know how difficult it is to find the right home.

But when you do, we can make the mortgage part easier.

  • First-time buyers can borrow up to 90% of the purchase price
  • You need to provide at least 10% of the purchase price as a deposit
Danitza Clarke GCFS Kildare Mortgage Advisor
First Tim Buyer Kildare Step-by-Step Guide for Buying a Home
  1. Save for a deposit – you will need to have 10% of the purchase price – the more you save the less you will need to borrow.
  1. Work out your budget – carefully review your budget to see how much you can afford to spend on your mortgage repayments each month and to make sure that you have enough to cover any other costs involved in buying and maintaining your new home. When calculating the First Time Buyer’s Mortgage cost, bear in mind the following:
  • Stamp Duty
  • Legal Fees
  • Valuation fee
  • Structural Survey/Engineers Report
  • Mortgage protection
  • Home Insurance
  • Renovations if necessary
  • Moving Costs
You should also consider the running costs of a house once you have moved in:
  • Electricity and heating – BER rating
  • Property Tax
  • Management fees – if applicable
  • Maintenance and repairs
  • TV/Broadband
  • Bin Charges

3. Research

Research the area you would like to live in. Does it fit your requirements, transport, schools, shops, location? Are there any major developments planned for the area in the future?

The most important thing to think about is the interest rate. Lenders can offer different rates but we can help you research interest rates.

Are you a First Time Home Buyer in Kildare, Ireland? Here are things to consider:

  • Is the property over 100 years old
  • Will you need a structural survey
  • Is the property habitable – does it require renovations, how long will the renovations take, and how much will they cost?

You should try to get mortgage approval in principle before you start looking at properties, so you will have a clear idea of your budget. Sellers will take your offer more seriously if you have approval in principle. Again we can help you with this.

  1. Start House hunting when you find a house you are interested in remember to ask the estate agent any questions to help you make the right decision. Relevant questions would include:
    1. What is the BER rating
    2. Why are the sellers moving
    3. How quickly can we close the property
    4. What local amenities are there?
  1. Making an offer when making an offer, set yourself a maximum price you are willing to pay for the property and try not to exceed this. Remember to factor in the condition of the house and if you will need to spend money on renovations.

You can ensure that you are in a strong position when making an offer by having a letter from GCFS showing you have mortgage approval in principle. Estate agents will look more favourable on a bid when you have approval in principle.

  1. Find a solicitor While you are looking for a property you should also look for a solicitor to do the conveyancing. This is the legal work to transfer ownership of the property from the seller to you. The estate agent will need your solicitor’s details once you have gone through the sale agreed. It is important that you talk about fees with your solicitor and get a confirmed price in writing.
  2. Sale Agreed Once your offer is accepted the property will be considered sale agreed. At this point, you will be required to pay a booking deposit to the estate agent. Booking deposits can vary from €5,000 to €10,000. Check with your estate agent that the deposit is refundable before you sign contracts. You will receive a deposit receipt from your Estate Agent. At this point, the vendor’s solicitor will send your solicitor the contracts for signing.
Buying a Second-hand House

If you are buying a second-hand house you should strongly consider having a structural survey carried out. This will highlight any issues there may be with the property.

If you are buying a newly built house, the builder will be in contact with you about a snag list prior to closure.

Examples of items for a snag list include:

  • Check if the heating is working
  • Cracks in ceilings or walls
  • Skirting boards being fitted correctly
  • Doors opening and closing properly
  • Uneven plaster work
  • Loose wires are all tidied and in place
  • Ensure no leaks

The builder will then work on completing the works outstanding on the snag list.

  1. Loan Offer: When you have gone sale agreed on a property and satisfied the bank’s criteria your bank will then issue a formal loan offer. Some banks will require a valuation at this stage. The loan offer will detail the amount you have been approved for, the address of the property, the value of the property, the term of the mortgage, and your monthly repayment. It will also detail the terms and conditions of the offer and the expiry date of the offer.

Your bank will send a copy of your loan offer to your solicitor along with the loan pack. You should arrange to meet with your solicitor to sign the required paperwork. At this point, you will be requested to bring your deposit up to 10% of the purchase price.

Both solicitors will arrange for a final closing date.

  1. Completing the purchase

Before your bank will release your mortgage funds to your solicitor there are a number of steps that you will need to complete:

  • Life policy must be in place to cover the value and term of the mortgage.
  • Valuation – get a valuation – this will be organised by the lender.
  • Home insurance – you will need to take out a home insurance policy on the property. The insurance amount is determined by the valuation.
  • If you are buying an apartment, you will then have block insurance which is normally incorporated in the management fee.
  • All special conditions on the offer letter are to be met.
  • Legal documents are to be submitted by your solicitor.

On the agreed closing date you will then receive the keys.

Frequently Asked Questions about First Time Buyer

Can I avail of the Help to Buy and the First Home Scheme together?
Yes, you can.
If you are availing of both the Help to Buy and First Home Scheme then Maximum funding of 20% is available from the FHS if availing of HTB.
How do I know if I am saving enough?
We can calculate what your mortgage repayments are and advise on what you should be saving on top of the 2% increase that the bank will stress you on.
How much can we borrow?
It depends on your income If you are a first time buyer or a second time buyer.

The second time buyer are still subject to 3.5X Income

First Time Buyers are subject to 4 X income – to be a first time buyer and it’s a joint application both applicants must be first time buyers

What fees are involved with buying a house?

There are various fee’s with buying a house if you are a first Time Buyer some of these include

  • Valuation
  • Mortgage Protection
  • Stamp Duty
  • Solicitor Fee’s
  • Structural Survey

Second Time Buyer selling current property and buying a new house

  • Valuation of your own house
  • Estate agent fee’s for listing the property
  • Solicitor Fees
  • Stamp Duty
What if the rate changes do my repayments change

If you are in a fixed rate for 5,4,3,2, or 1 year your repayments won’t change.

You will need to check what rate you are on. If you are on a variable rate you will also need to be mindful of what rate you are on also as this could change anytime also.

Gwen Clarke Financial Services Ltd’s team of experts offers a wide range of services, including investments, pensions, corporate pensions, mortgages, and life protection. We understand that each of our clients has unique financial needs, which is why we tailor our services to meet your specific requirements. Our goal is to help you achieve your financial goals by providing you with personalized advice and guidance every step of the way. Whether you’re looking to invest for the future, secure a mortgage, or protect your loved ones, we can help. Contact us today to learn more about our services and how we can assist you in your First Time Buyer’s Mortgage in Kildare, Ireland, and in securing your financial future!

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