First Time Buyer

Baldie

Hi all,
Im about to embark on my first mortgage. I have my meeting with First Active at 11am Tuesday monring... Yes, Im taking advantage (if thats what you want to call it) of the 100% mortgage. My father said he'd loan me €5k for the solicitors fees and whatnot....

I have a house in mind. It's where I grew up when I was younger. I like the area, and I'd love to get my hands on the house.

The plan is to get one or two lads to move in with me and rent out the two rooms(it's a 3 bedroom house..). I haven't ran it buy them yet, as I'd prefer to know that I have the mortgage, rather then jump the gun. That will pay the mortgage for me for the time being anyway, until I get seriouse with the missus.... which will be a few years I'd say.

Anyway, anyone got any advice for a first time buyer...
I'd prefer more advice now then criticism...

Thanks...

Stuff

i herd of this first active 100% Mortgage. Whats the catch I am also trying to get a house but Im not to sure about that first active deal is all about

Baldie

I was thinking that as well. Sure, I'll find out Tuesday morning. Someone was telling me that you must stay in the house for 15 years. Which is ok with me, you buy a house to live there like.....

JackieChan

Permenant TSB are offering 100% from next Monday.

Baldie

okay guys, we're kind of staring to stray form my original post here. I thought that might happen....

Has anyone got any advice for a first time buyer?

SixShot

Don't Have any advice but let us know what the catch is when you go there on tuesday or so

tml

check out this website www.askaboutmoney.com

should be able to answer any questions you have there

unklerosco

Just be prepared, have a list of every possible question u can think of for tuesday... MYself n the GF r trying to get a mortgage and have been turned down twice due to the nature of my work... Its a hard n stressfull slog, i've been running around for two weeks trying to get this and that, the GFs been waiting for a week n a half for a bank statement, i got mine after 2 days. Things like that can mess u up so try n get as much ready as u can..

Gererally u'll need this
>6 Months Bank Account statements
>4 recent payslips
>Completed Certificate of Income
>Utility Bill
>Copy of identification
>Statement on existing Savings
>P 60 2004

Dellgirl

Photocopies of everything will help to get you out of there faster.

Einstein

You're right not to tell them about renting other rooms. As far as the bank is concerned they want YOU to pay the mortgage. We all know that people rent rooms etc, but its important that you can prove to the bank that you can pay it on your own.

TwoShedsJackson

Baldie wrote:

The plan is to get one or two lads to move in with me and rent out the two rooms(it's a 3 bedroom house..). I haven't ran it buy them yet, as I'd prefer to know that I have the mortgage, rather then jump the gun.

You might want to do that the other way around - run it by them, if they're interested tell the bank. The bank should be happy to hear that you have probable rental income in to help on the mortgage.

Spocker

Just recently moved into my own place so I'll throw in my two cents worth: I can't agree with unklerosco more - have as much paperwork as possible handy when you go in to talk to them. Don't lie about current outgoings - car loan, credit card debt, other loans etc etc; they can (and will) check your Irish Credit Bureau record, if you have one.

Be prepared to stump up the cash for the booking deposit up front - from the First Active Website:

You will be initially required to fund items such as a booking fee or a deposit, where applicable. However on closing the sale, the mortgage cheque drawn down will cover 100% of either the value or the purchase price of the house, whichever is lower.

Don't forget that it you do take in your buddies as tenants, you can earn up to €7620 tax free, anything over that and you pay tax on the whole lot (see this thread).

Spocker

If (and when ) you do buy the house, apply for the TRS online (here) rather than sending in the form by post. The nice lady in the TRS office told me that those submitted online get processed that night (automatically??), whereas a paper appliocation can take up to 8 weeks

Baldie

I was talking to the two lads last night about it. One guy is thinking about getting a mortgage as well so he's more then likely out of the equation.

The other lad seems interested as he used to live in the area as well.

I have most of the paper work already. I was asked for 6 months bank statements, but the lady siad that 3 will do. I have 4 months...

Moonbeam

do tell them about ur intentions to rent out one of the rooms,this will allow u a little extra in the amonut of the mortgage:)

Mezcita

Baldie wrote:

Anyway, anyone got any advice for a first time buyer...
QUOTE]


Hope you get the place you are after Baldie. Best bit of advice which I have after going through the whole process is that you should attempt to play the banks off eachother in order to get the best deal. The days of people turning up, cap in hand, begging for a mortgage are gone.

If the banks think they are about to lose 300 grands worth of business they will start bringing the rate down. Its worth shopping around, even for this new 100% mortgage deal. Basically because any reduction in the rate you get will save you a lot of money in the long term. Its amazing how many people get a mortgage off their normal bank just because they have had an account with them since they were kids. I had a complete laugh playing AIB and BOI off eachother.

Also, as people have already said don't tell them you are going to rent the rooms.

Best of luck.

cee_jay

As ppl have said already, don't tell the bank that you are relying on renting the rooms to pay the mortgage - because lodgers move out, and you can't get someone to take the room - you still have to pay the mortgage! so they need to know you have the earning capability to pay it back without relying on tenants

rummy

Hi Baldie

I would suggest you use Home Law Direct which is based up near St John's hospital (www.homelawdirect.ie) They cost me 950 + vat which was great value and I also received great legal advice from them.

I would suggest that you consider the implications of going variable as then if things with the States go bad it means that your mortgage will go up considerably as well. Sometimes its best to go fixed (which is cheap at the moment - 3.49% for 3 years). Also you are entitled to rent allowance from the Tax office as well and this is deducted directly from your bank. Also play all the banks off each other - don't go with just one bank/society - talk to all of them and tell them what rates you are getting and how they can match it or do better. Remember they want you for the next 20 or so years as a customer! You need to check out the implications of having lodgers - what are the tax implications if any.

Good luck with the purchase.