Looking to buy your first house in Ireland? This year may be the best time to make this happen with reports stating that there is an increase in the number of houses set to be released in the market this 2018. But before you purchase your first home, make sure you arm yourself with the right information. This is the key to avoiding costly mistakes and ensuring the success of this undertaking.
What are the tasks involved in purchasing a house? What should you keep an eye on? What should you not do? Read on to know the steps in buying a house in Ireland as well as other pertinent information which can help you in this task.
Know What You Can Afford
This is one of the golden rules when buying a house. You cannot go house hunting without having an idea of how much you can afford. So, unless you have savings to pay for the entire cost of a property, the first step is to determine how much you can borrow from lending institutions.
Based on the Central Bank of Ireland’s directive, first-time homebuyers like you can borrow up to 3.5 times your annual gross income. Alternatively, you may also be allowed to borrow 90% of the total value of the property you are planning to buy. Meanwhile, for your deposit, the minimum amount required is 10% of the purchase price. Depending on the location of the house you are eyeing, the deposit can range from €13,000 to over €50,000.
Borrowing a large amount may seem convenient in the short-term. However, your future, specifically your financial capability, must be taken into consideration. Think about the amount you are capable of and comfortable paying monthly for the duration of the mortgage term. Keep in mind, on top of the repayments, there are other house-related expenses you need to regularly pay for such as insurance, tax and maintenance services. So, be prudent and take all these into consideration when borrowing from a lending institution.
An ‘Approval in Principle’, is going to be handed to you when your mortgage application is approved. With a validity of six months, the ‘Approval in Principle’ can improve your credibility to sellers and estate agents.
On top of the deposit and mortgage payments, you also have to factor in other expenses related to purchasing a house. Other stuff you need to pay for are fees for property survey, real estate agent and legal matters, among others.
Work with an Estate Agent
Once you determine how much you can afford, the next step is to look for a house. To make the house hunting seamless and less stressful, hire a professional real estate agent. With her extensive network and years of experience in the industry, a realtor can find a house that meets your specifications and budget without delays. Furthermore, she can help you navigate the complex process of purchasing house, providing advice and lending a hand to help you accomplish the task smoothly.
When searching for a real estate agent, ask for personal recommendations from family and friends to ensure that you get a good one. Also, before choosing, make sure you set up a meeting with the realtor to determine if you are the right fit for each other.
Hire a Solicitor
You need a solicitor to take care of the paperwork and other legal matters. On top of working on the transfer of the property under your name, she can oversee the inspection of and study the property lines as well as look for potential problems which can affect the value of the house.
The documents involved in the purchase of property are filled with legal jargons which can be difficult to comprehend for those who aren’t in the legal profession. This is where your solicitor comes in; she can explain all these things to you. So, if you do not understand something, consult her.
To avoid delays in the process, see to it that you hire your solicitor early on and not when you already need one. Otherwise, the property you like may end up with another buyer just because you do not have someone ready to take care of legal matters.
Buy the Property
When you’ve decided on a property you want to purchase, the next step is to make an offer. During this process, your agent can help you negotiate to ensure that you get the best deal as well as to win the bid.
If the seller accepts your offer, the status of the transaction enters what’s called ‘sale agreed’. The next step is to pay the booking deposit – doing this lets the seller know that you are serious about buying the property.
Next, a document bearing the sale details will be sent to the solicitors of both parties. Upon receipt of the sale details, the seller’s solicitor is going to send the Title Deeds and contracts to your solicitor. If everything is okay with the property and terms, signing of contract follows. Once this is done and the mortgage funds are released to the seller, you can now prepare to move in.
Learn more about how to buy your first house in Ireland. Talk to our professional real estate agents today. Call us at 01 4959020.