Are you ready to become a homeowner? As a first time buyer, getting a mortgage might seem daunting but with the right preparation, it can be a seamless process.

Here are some essential tips to help you get mortgage-ready and secure your dream home:

• Consult a Mortgage Broker

One of the first steps in preparing for a mortgage is to reach out to a mortgage broker. At Which Mortgage, we offer personalised advice and guidance, as well as access to all lenders in the market. Our services are free of charge, and we can help you understand your options, identify the right mortgage for you, and navigate the application process smoothly.

• Determine What You Want

During the early stages of your mortgage preparation, take the time to consider where you would like to live and the type of house you would like to buy. Create a property short list where you consider the location and size of homes you like; proximity to your workplace; your future plans such as starting a family; etc. This will help you determine the level of savings and mortgage you would need to buy your home. It will also contribute to a successful house hunting journey when the time comes.

• Demonstrate Repayment Ability

When applying for a mortgage, you will need to demonstrate your ability to repay your mortgage. Start by using our First Time Buyer Mortgage Calculator to calculate what your monthly mortgage repayments might be. Once you have this figure, you will need to demonstrate that you can afford this amount from your current income. The lender will use your rent and savings to determine your repayment ability so these should add up to the monthly mortgage repayments.

• Check and Improve Your Credit Score

Your credit score is a key factor in the mortgage approval process as it indicates your creditworthiness to lenders. Take steps to improve your credit score by paying off debts, avoiding late payments, and keeping credit card balances low. At Which Mortgage, we can assist you in understanding and improving your credit score.

• Explore Government Supports for First Time Buyers

In an effort to help first time buyers step onto the property ladder, the government has introduced supports such as the Help to Buy Scheme, which provides a tax rebate of up to €30,000 towards your deposit, and the First Home Scheme, which can provide up to 30% of the market value of your new home in return for the same percentage share of equity in the home. This is reduced to 20% where you are also availing of the Help to Buy. Researching these government supports can help you maximise your chances of securing a mortgage and purchasing your dream home.

• Organise Your Paperwork

When applying for a mortgage, you will have to provide documents related to your employment, your financial status, and your identity. These documents include:

Income documents - if you are an employee, you will have to provide a salary certificate, your EDS (Employment Detail Summary), recent payslips. Where you are self-employed, you will have to provide Form 11s, trading accounts and tax clearance certificates.

Financial documents - bank statements for your current and savings accounts, credit card statements and statements for any existing loans.

Identity documents - a valid passport or driver's licence, and a recent utility bill or bank statement with your current address.

It is important that you gather these documents in advance of us submitting your application as this will help to streamline the mortgage application process.

• Employment Status

Lenders gauge your mortgage affordability based on your income, i.e. your income should support your desired mortgage amount. You must maintain steady and sustainable employment and it is advisable that you avoid changing jobs while you are preparing to submit your mortgage application. Where you are self-employed, you will also have to demonstrate consistent income and an ability to afford your mortgage repayments.

• Secure Approval in Principle

A mortgage Approval in Principle (AIP) is a statement or letter from a lender indicating the amount they are prepared to lend you. Once you have your AIP, you will have a better idea of the types of homes in your affordability range. Additionally, when you are house hunting estate agents are likely to request to see your Approval in Principle as it serves as proof to them that you are likely to secure a Full Loan Offer, therefore increasing your chances of making a successful offer.

While the mortgage process might take time and effort, the sense of accomplishment you feel when you get the keys to your new home is well worth it. Being diligent and seeking advice from our mortgage specialists during the preparation phase are essential to getting mortgage-ready. This will enable you to make well-informed decisions and improve your chances of a successful application.

Contact us today for a confidential chat about your mortgage journey.