Irish
Mortgage Basics
A step-by-step guide
to getting a mortgage
Get an
online 'Approval in Principle'
After you
complete an application form, the lender may issue you with an
'Approval in Principle' on the spot. 'Approval in Principle' is
a note which says that they have approved your application,
subject to verification of the information that you have
provided.
At this stage you
should start to gather the documentation that the lender will
need, such as a P60 and a Certificate of Income.
Arrange
home insurance and life insurance
You should
arrange your insurance policies in good time to be able to
complete them when the mortgage starts. Life insurance
policies in particular can take some time to be underwritten and
accepted so your application should be made as soon as you have
started your mortgage application.
Choose a
solicitor
If you do not
already have a solicitor, you should choose one at this stage.
Submit
all supporting documentation
You should now
have sent the lender all the documents that they need to
progress your application. They will let you know if there are
any items outstanding.
Sign and
return the 'Letter of Offer'
The 'Letter of
Offer' sets out the terms and conditions which will apply to the
mortgage contract. It is a binding legal document once signed.
You should read it very carefully and obtain legal advice prior
to signing it. When signed it must be returned to the lender
together with a direct debit mandate.
Agree a closing date
Your solicitor
will deal with the legal arrangements for your purchase and will
advise you in relation to the closing date.
We issue
your loan cheque
When all the
documentation is in order your loan cheque is issued to your
solicitor.
Closing
the sale
At this stage you
sign the relevant documentation including the mortgage deed.
Stamp duty should be paid now if it applies to you. Your
solicitor will complete the legal formalities. The sale of the
property is registered at the Land Registry or noted at the
Registry of Deeds office, depending on the type of title the
property has. Your solicitor will then send the lender the
completed deeds, which they hold as security for your loan.
Move in!
Congratulations!
You now get the keys to your new home and can start planning the
house warming party! Your monthly repayments will normally start
on either the last working day of the following month or on a
date you have chosen. Your lender will issue you with a
Certificate of Interest one month from the date that your loan
cheque is cashed. This is an estimate of the annual interest to
be paid. It allows you claim tax relief on your mortgage
interest repayments
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