Are you interested in getting a mortgage but don't know where to start? You're not alone!
A mortgage is one of the biggest commitments and most important decisions you'll ever make. That's why we've put together a 7-part video series to help you make the best choices at this exciting time.
Episode 5 explains what you can expect form the loan offer and closing stages of the mortgage application process in Ireland. Watch it below!
New episodes of the series are released every Monday. You can watch previous episodes on the bonkers.ie YouTube channel now.
MW: Hello and welcome to another episode of our guide to getting a mortgage in Ireland. Once again I’m joined by Dave Curry of the Irish Mortgage Corporation and today we’re going to be discussing the steps involved in getting from the approval in principle stage right through to putting the keys in the door of your new home.
MW: In our previous episodes we discussed how you can prepare for your mortgage application, how you actually apply for the mortgage itself and the Central Bank’s mortgage lending rules.
MW: So Dave, I’ve just got approval in principle, I want to buy a house and put the keys in the door. What are the next steps involved?
DC: Well you want to go out looking at properties, you might be looking at second-hand properties and bidding against people, or you might go and buy a new property in a new development.
MW: Ok, just say I’ve identified the property I want to buy, and I believe that its value is within what I think I can borrow, I want to go back to my bank, what does that conversation go like?
DC: Well, assuming you’ve had your offer accepted, then you know what the purchase price is, you go back to your broker or your bank and let them know the good news that you’re sale agreed on a property and at that stage, they’ll talk you through the process. You’ll need to get a couple of reports in, the first is a structural survey, or a pre-purchase survey, and the second is a valuation report. That’s a valuation for mortgage purposes related to the bank that you’re applying to.
MW: Ok, does my survey and my report cost me money?
DC: Yes, they will. The pre-purchase or structural survey most of the time that’s up to the buyer as to whether or not they want to get one – we would generally recommend that – that will typically cost anywhere from about €300 to €500. Then, the valuation report for the bank will typically cost €130 to €150, depending on the location of the property.
MW: Ok, so let’s say every party involved in the process is happy with the findings of the report and I’ve submitted that to the the bank. Is there anything else I need to submit to the bank with that?
DC: Well, the bank may have requested certain documents or items but they would have noted those as conditions of the approval in principle, but assuming you have submitted those also, then the bank should be ready to give you the loan offer. The other details that would be in the loan offer would be very specific details such as exactly the amount that the mortgage loan offer is for, the exact term and also the interest rate.
MW: So this is the point at which all of the details get fine-tuned and firmed-up and it all starts to look very real.
DC: That’s right. Then the loan offer is specific to the property, the rate, the term etc.
MW: Ok, so I’m sale agreed, I’ve got my loan offer, I’m getting excited about moving in, what else needs to be overcome before I can actually put the key in the door?
DC: Ok well know you’re in the closing stage and there is another checklist of items to work through but then you’ll be finished after that. The most important items at that stage are various legal documents and forms, including the bank’s loan offer, then you’ll need your insurances; your life assurance, that’s a mortgage protection policy typically and your home insurance. Your broker or bank will work with you through a checklist of items that are required for closing and ultimately your solicitor will instruct the bank to issue the mortgage funds. And then you’re ready to walk into your home.
MW: Fantastic. Dave, thank you very much.
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