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First Time Buyer Queries

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  • 07-01-2014 6:30pm
    #1
    howtolive
    Registered Users Posts: 81 ✭✭


    Hi,

    Potential (hopefully!) first time home buyer here, looking for some info. I've searched many a forum but can't seem to find specific answers to these. Would be looking to make a purchase in the next 1-2 years, with my better half. Any help/advice/similar experiences would be great.

    Our situation:

    Me: 26 nearing 27, full time permanent position in established B2B private firm, on 30k a year + varying commission.

    Her: 25, full time permanent position in childcare services industry, on 18k a year.

    Current savings: 32k total (primarily mine, structured savings of at least 1k a month), with 1.3k being added each month at present. No outstanding debts/dependents, but do wish to have children.

    Both living at home, insured on parents cars but would be buying a small second hand car jointly close to time of house purchase if possible.

    Would hope to have at least 45k saved purely for a deposit + 3.5k ish for fees etc by the time we're applying. Only interested in purchasing a house, not interested in apartments/management fees (we'll be taxed enough as is!)

    From mortgage calculators online it seems like we could potentially be approved for 130-160k, term 25-30 years.

    Before we go to a bank we basically wish to get our savings in order, and manage our expectations on where we can live.

    Key financial questions:
    1) Any ideas on what value mortgage we could realistically aim for - i.e. are the calculators a good ballpark figure or pure invention?

    2) How much should we ideally leave ourselves with in a current account at minimum after downpayment? (Gut tells me 6k as a base)

    3) How much should we typically set aside for furnishings, small refurbishments for an "average" home (if there is such a thing)? (10k?)

    4) Stress-testing: with banks stress testing mortgage applicants (taking into account 2% interest rate increases and cost of living)
    how much should we show we are saving per month (e,g. 1000 for mortgage repayments + 800 bills/food + 200 misc expenses = 2000 per month savings target?)

    In short, what is the minimum we should be saving and doing on top of a deposit before even bothering to apply for a mortgage?

    Can anyone give any advise on on these? :)

    Also have queries on where to live here:

    http://www.boards.ie/vbulletin/showthread.php?t=2057119374

    Thanks for reading!
    Tagged:


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