SO YOU’RE THINKING of buying a house…

Congratulations – even thinking about this and organising your thoughts around what to do next is a big step. There’s a lot to mull over, so well done on taking the plunge into the next phase of your life.

We’ve put together a list of some things to think about before you approach your chosen bank to discuss getting a mortgage. This is the first hurdle before you go out and take a look at the property market and find your house.

Here’s your crash course in how to apply for your first mortgage.

Where do I start?

First things first. The very first hurdle to tackle is how much a bank is willing to offer you, hypothetically. A mortgage calculator can assess this for you in a matter of minutes, once you input your relevant information. Be realistic – and be honest with yourself.

You’ll need to give things like:

• Your application type (joint or single)
• Marital status
• Age
• Number of dependents
• Employment details
• Salary breakdown
• Savings

There could be a few more finer details, depending on what bank you are speaking to. You’ll also need to slot in information regarding what mortgage you would ideally like.

Ask yourself some questions to assess your situation. For example:

• Do you have a deposit saved up already?
• Are you paying rent each month?
• Are you saving a bit each month?
• What kind of timeframe and type of mortgage are you looking for?

The mortgage a bank is willing to offer you will then inform the budget you can draw up to look for properties.

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What will I need?

Once you have a rough guide from the mortgage calculator on how much you could borrow from your chosen bank, the next step is going in and speaking to them about it.

If you want to proceed quickly (and smoothly) with a mortgage application, it’s prudent to get together a few key documents in advance of your meeting. This will speed up the process – and no matter what bank you decide to opt for, they’ll be a necessary part of things, so it’s worth getting them organised.

Here are some of the key documents you’ll need to have to hand:

• Bank statements (usually 6 months for any bank account you hold)
• 3 months of credit card statements
• Evidence of savings
• A signed application form
• Confirmation of earnings (in the form of a salary certificate from your employer, for example)
• Your most recent P60 and 3 months payslips
• A signed application form

Of course, what documents your bank will need to move ahead with your application will vary hugely, but it’s safe to at least have the above ready. Here’s a more comprehensive checklist too.

Use the above to start work on putting together a folder of what you’ll need.

Matthew Crisp Matthew Crisp

What’s next?

After all of the above, you’ll hopefully receive an approval in principle from the bank that will enable you to go out on the hunt for your new place. An approval in principle basically means a document  that indicates how much the bank may lend you, based on the information you provided to them (but it’s not the official loan offer).

So now it’s all about looking up those property listings. Good luck!

Have you any advice for people applying for their first mortgage? Share your sage wisdom in the comments section.

The Mortgage Lounge from KBC is an event not to be missed – an evening dedicated to helping you find the right mortgage and home. To be held in Dublin’s Mansion House on Dawson Street between 6 and 8pm on 10 March.  For more information or to register visit www.kbc.ie/mortgagelounge. For more information on first time buyers’ mortgages, click here.

Lending criteria, terms and conditions apply. Security and insurance are required. KBC Bank Ireland plc is regulated by the Central Bank of Ireland.

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