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Do's and don'ts for first time buyers

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    #182
    Jen Pigs Fly
    Registered Users Posts: 2,770 ✭✭✭Jen Pigs Fly


    Markitron wrote: »
    I assume it would be fine, otherwise it would defeat the whole purpose of the HTB scheme

    Pretty much! I would assume the same, if you have 15k saved and 15k approved banks consider that 30k deposit :)


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    #183
    Febreeze
    Closed Accounts Posts: 190 ✭✭Febreeze


    Jen Pigs Fly wrote: »
    I think it’s a percentage set to allow for inflation.

    For example, our mortgage was approx €1000, we needed to save minimum of €1400 to satisfy the stress test.

    I just left our broker to it, he told us our minimum to save and we just made sure to save over that monthly.

    Perfect.

    I taught it was more on how we can cope as a couple to not kill each other while saving! I was like why would the banks care but you've put that wise to me haha!


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    #184
    newaccount2017
    Registered Users Posts: 112 ✭✭newaccount2017


    My tips are for when you finally buy the house. I made a load of these mistakes!

    1. Don't buy any furniture for a while!
    2. Just paint all the walls while the rooms are empty. Once they fill up with furniture, it will be way harder.
    3. Write down the neighbour's names if you have loads, cos you will definitely forget some of them.
    4. Get the chimney cleaned early on.
    5. Don't go nuts in Ikea. You'll fill the rooms up over time, not in one go.


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    #185
    Jammyd
    Registered Users Posts: 281 ✭✭Jammyd


    newaccount2017 wrote: »
    My tips are for when you finally buy the house. I made a load of these mistakes!

    1. Don't buy any furniture for a while!
    2. Just paint all the walls while the rooms are empty. Once they fill up with furniture, it will be way harder.
    3. Write down the neighbour's names if you have loads, cos you will definitely forget some of them.
    4. Get the chimney cleaned early on.
    5. Don't go nuts in Ikea. You'll fill the rooms up over time, not in one go.

    Solid advice - definitely don't rush filling up the rooms, you'd be surprised how you envision you want to kit out versus having lived in the space a while vary dramatically, we rushed to get everything when we moved into our place and now are slowly replacing a lot of what we rush bought at the start..


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    #186
    [Deleted User]
    Posts: 24,715 ✭ [Deleted User]


    Cuddlesworth wrote: »
    Which reminds me of the thread title.

    Don't have your bank accounts with the same bank you intend to have your mortgage with. Move after getting the mortgage if needed.

    That doesn't make any sense, there is no reason not to have an account in the bank which you get your mortgage from.

    Also it would be a struggle since many people have multiple accounts in different banks.


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    #187
    Jen Pigs Fly
    Registered Users Posts: 2,770 ✭✭✭Jen Pigs Fly


    Febreeze wrote: »
    Perfect.

    I taught it was more on how we can cope as a couple to not kill each other while saving! I was like why would the banks care but you've put that wise to me haha!

    We were in the same boat, don’t worry! We went in completely blind and naive, luckily with a good broker and boards.ie we got loads of information and now, a year later are in our house!
    It it’s so daunting, so much information, so many opinions and so many ways to go about it.
    My work computer has a huge ‘mortgage’ folder that has everything from month by month analysis of spending vs savings, spreadsheets to try meet brokers saving targets, so much house and spending/saving stuff! It was tough, but so so worth it!


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    #188
    Jen Pigs Fly
    Registered Users Posts: 2,770 ✭✭✭Jen Pigs Fly


    Malcolm Late Funeral wrote: »
    That doesn't make any sense, there is no reason not to have an account in the bank which you get your mortgage from.

    Also it would be a struggle since many people have multiple accounts in different banks.

    Second this, it was actually easier. His bank account was with the same bank we got the mortgage. We didn’t have to submit any bank statements from him at all, and his savings went to a savings account with the same bank.

    Meant we only needed to get my statements. We also have a joint account now for mortgage and bills, so he now has 3 bank accounts with the bank we got the mortgage from


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    #189
    Febreeze
    Closed Accounts Posts: 190 ✭✭Febreeze


    Jen Pigs Fly wrote: »
    We were in the same boat, don’t worry! We went in completely blind and naive, luckily with a good broker and boards.ie we got loads of information and now, a year later are in our house!
    It it’s so daunting, so much information, so many opinions and so many ways to go about it.
    My work computer has a huge ‘mortgage’ folder that has everything from month by month analysis of spending vs savings, spreadsheets to try meet brokers saving targets, so much house and spending/saving stuff! It was tough, but so so worth it!

    You read my mind on the mortage folder on your computer. My partner had the misfortune of having to place his game on pause she he could sit down in front of spreadsheets with me and go over but by bit what are budget and savings will be. I've even written a calender so I can track it and know exactly what I'll have. We are losers haha!

    I wouldn't even mind, I've got family who have bought houses but I find trying to get the information from them and step by step task of what we have to do was pretty much "save and go to the bank". There was no tips or advices and I think thats what derailed us a little bit. I set up this thread hoping it would help and Jesus we have been advised left, right and center. I feel a lot more confident that we'll be able to achieve a house by the end of next year.

    I'm glad you're enjoying your new home! :-)


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    #190
    Febreeze
    Closed Accounts Posts: 190 ✭✭Febreeze


    newaccount2017 wrote: »
    My tips are for when you finally buy the house. I made a load of these mistakes!

    1. Don't buy any furniture for a while!
    2. Just paint all the walls while the rooms are empty. Once they fill up with furniture, it will be way harder.
    3. Write down the neighbour's names if you have loads, cos you will definitely forget some of them.
    4. Get the chimney cleaned early on.
    5. Don't go nuts in Ikea. You'll fill the rooms up over time, not in one go.

    Thank you so much :-)

    Luckily we have two bedrooms to sort of "full out" and the sitting room can make do with second hand furniture until we make it our own. My plan is to focus on a room each as time goes on. I was with the intentions of buy all we need for all rooms and do it up to the standard we wanted it but when we done our calculations and decided on how quick we actually want to have a deposit, we knew we were just setting ourselves up for more stress trying to put more money to the side. It's now, save for the deposit, put €20-€50 away (only if we can) by the time we get around to moving into a house, we can go out and buy what we need rather than what we want. It's still exciting all the time. Plus we want to make sure we've a bit away for insurance, Internet etc. The unusual that no one wants to talk about haha


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    #191
    Jen Pigs Fly
    Registered Users Posts: 2,770 ✭✭✭Jen Pigs Fly


    Febreeze wrote: »
    You read my mind on the mortage folder on your computer. My partner had the misfortune of having to place his game on pause she he could sit down in front of spreadsheets with me and go over but by bit what are budget and savings will be. I've even written a calender so I can track it and know exactly what I'll have. We are losers haha!

    I wouldn't even mind, I've got family who have bought houses but I find trying to get the information from them and step by step task of what we have to do was pretty much "save and go to the bank". There was no tips or advices and I think thats what derailed us a little bit. I set up this thread hoping it would help and Jesus we have been advised left, right and center. I feel a lot more confident that we'll be able to achieve a house by the end of next year.

    I'm glad you're enjoying your new home! :-)

    Exact same here, me slaving over spreadsheets to try to pry himself away form the PlayStation to be told “ah it’ll be grand”. I called it my Monica Geller moment with the label maker.
    We did two columns - one of where we are and the other our target, it was a good way to see how far we were from the target. And once we were over everything else was bonus!

    I found our parents didn’t understand the amount of loops we had to jump through as back when they bought they just had to furnish proof of earnings and have some money saved.
    I’ve a friend who bought 2 years ago. So she was super helpful, I was able to crazily rant my worries and she was able to be all like “lol that’s normal, relax!” Was helpful alright!


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    #192
    RINO87
    Registered Users Posts: 2,510 ✭✭✭RINO87


    Markitron wrote: »
    Just to jump in on this, can you get AIP with a 5% deposit, assuming you have a full HTB application approved.

    Hi, how do you go about this?? As in getting HTB approval before getting approval from a bank, or have I got it all wrong?

    Revenue website basically says you need loan approval to get HTB.

    Thanks


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    #193
    RedXIV
    Registered Users Posts: 8,425 ✭✭✭RedXIV


    RINO87 wrote: »
    Hi, how do you go about this?? As in getting HTB approval before getting approval from a bank, or have I got it all wrong?

    Revenue website basically says you need loan approval to get HTB.

    Thanks

    You should be able to kick-start the process in the revenue site in isolation to anything else. We got approved last year and hadn't even spoke to a bank at that stage.

    Help to buy can be applied for at any time


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    #194
    Fitz*
    Registered Users Posts: 15,489 ✭✭✭✭Fitz*


    RedXIV wrote: »
    You should be able to kick-start the process in the revenue site in isolation to anything else. We got approved last year and hadn't even spoke to a bank at that stage.

    Help to buy can be applied for at any time

    How long does the HTB approval last for, do you know?


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    #195
    hayser
    Registered Users Posts: 393 ✭✭hayser


    If buying a house in a new housing estate, ask where the social housing is going to be. You can usually identify it on the plans as there will one colour for private buyers and another for social housing. There might not be any issues in relation to this once everyone moves in but unfortunately that's not always the case.


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    #196
    RedXIV
    Registered Users Posts: 8,425 ✭✭✭RedXIV


    FitzShane wrote: »
    How long does the HTB approval last for, do you know?

    Until the end of the year. So you apply now, it'll last until the 31/12/20


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    #197
    Jen Pigs Fly
    Registered Users Posts: 2,770 ✭✭✭Jen Pigs Fly


    hayser wrote: »
    If buying a house in a new housing estate, ask where the social housing is going to be. You can usually identify it on the plans as there will one colour for private buyers and another for social housing. There might not be any issues in relation to this once everyone moves in but unfortunately that's not always the case.

    We visited maybe 30+ new build, sites, have the brochures to prove it.
    Not a single one had social housing in a different colour or in any way identified. New builds do not identify social housing. At least any of the ones we went to in Kildare, Dublin, Meath, Westmeath, Laois and Wicklow.

    Builders and EA tell you they don’t know which was social housing as they don’t want to tell you. It may devalue the house so they don’t want to tell you

    Plus is stops the “them vs us” mentality if you know which ones are social.


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    #198
    Febreeze
    Closed Accounts Posts: 190 ✭✭Febreeze


    hayser wrote: »
    If buying a house in a new housing estate, ask where the social housing is going to be. You can usually identify it on the plans as there will one colour for private buyers and another for social housing. There might not be any issues in relation to this once everyone moves in but unfortunately that's not always the case.

    I didn't really think of that to be honest.

    I'll look into doing that but I think we'll be leaning more onto a "oldish" house, I think regardless of whether it's got social housing. As niave as it sounds but coming from where I am originally from, not so nice area, it wouldn't even occur to me to ask. Mind you the areas we have looked at have houses that are quiet isolated but I will keep that in mind though. Thank you :-)


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    #199
    dowhatyoulove
    Registered Users Posts: 155 ✭✭dowhatyoulove


    Jen Pigs Fly wrote: »
    We visited maybe 30+ new build, sites, have the brochures to prove it.
    Not a single one had social housing in a different colour or in any way identified. New builds do not identify social housing. At least any of the ones we went to in Kildare, Dublin, Meath, Westmeath, Laois and Wicklow.

    Builders and EA tell you they don’t know which was social housing as they don’t want to tell you. It may devalue the house so they don’t want to tell you

    Plus is stops the “them vs us” mentality if you know which ones are social.

    My hubby works in construction so looked up the planning permission for the sites online we were looking at (cos we were nosy about plot sizes, future developments etc) and they are usually colour coded there. Doesn’t bother us as we both grew up in social housing.


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    #200
    RINO87
    Registered Users Posts: 2,510 ✭✭✭RINO87


    Just want to add my thanks also to the OP and everyone for the info in this thread, it's really helpful.

    I've been saving consistently for a few years and have the 10% of what our upper limit would be... I had not factored in the extras, but luckily we are in a position to up our savings right now to get a bit put aside for those.

    Time we start talking to a broker! Was tempted to go gung ho into it myself before Christmas, but its a different world now!


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    #201
    stevek93
    Registered Users Posts: 3,088 ✭✭✭stevek93


    OP this has been probably mentioned already but save save save and don't for the love of god touch it! Save what you mortgage repayments are going to be each month. Again don't touch it not even 1c leave it alone! Do this for atleast 8 to 12 months. There is a lot of other things that is required but this is VERY important.


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    #202
    Jen Pigs Fly
    Registered Users Posts: 2,770 ✭✭✭Jen Pigs Fly


    dowhatyoulove wrote: »
    My hubby works in construction so looked up the planning permission for the sites online we were looking at (cos we were nosy about plot sizes, future developments etc) and they are usually colour coded there. Doesn’t bother us as we both grew up in social housing.

    I was looking at the planning too sent to Meath CoCo. Doesn’t seem to be a colour code for different types of houses, just the 3 beds different colour from the 4 beds, etc. Maybe this is a new thing?


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    #203
    dowhatyoulove
    Registered Users Posts: 155 ✭✭dowhatyoulove


    Jen Pigs Fly wrote: »
    I was looking at the planning too sent to Meath CoCo. Doesn’t seem to be a colour code for different types of houses, just the 3 beds different colour from the 4 beds, etc. Maybe this is a new thing?

    Usually there are color coded, sometimes you can tell by the type of home as I know in our estate they have a set type of social housing that wasn’t sold to the public and that’s how we knew (ours was coded on one of the applications but not the rest).

    Saving is really the key tho! That and visiting many open days to know what houses available and what you like


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    #204
    Jen Pigs Fly
    Registered Users Posts: 2,770 ✭✭✭Jen Pigs Fly


    dowhatyoulove wrote: »
    Usually there are color coded, sometimes you can tell by the type of home as I know in our estate they have a set type of social housing that wasn’t sold to the public and that’s how we knew (ours was coded on one of the applications but not the rest).

    Saving is really the key tho! That and visiting many open days to know what houses available and what you like

    Ah I get ya, nothing was put on the planning, but there are definitely houses that never came up for sale per se, and ones that don’t show up on the property price register.


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    #205
    Febreeze
    Closed Accounts Posts: 190 ✭✭Febreeze


    RINO87 wrote: »
    Just want to add my thanks also to the OP and everyone for the info in this thread, it's really helpful.

    I've been saving consistently for a few years and have the 10% of what our upper limit would be... I had not factored in the extras, but luckily we are in a position to up our savings right now to get a bit put aside for those.

    Time we start talking to a broker! Was tempted to go gung ho into it myself before Christmas, but its a different world now!

    A huge good luck to you!

    Please keep me updated on how you're getting on. I love hearing the good, the bad and the ugly of buying a house haha!

    Only one more week before I return to work and I can finally up my savings so no more covid payments and in 6 months all that will be cleared from my account. Back to my set wages and before we know it, we'll be in the same process :-)


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    #206
    Febreeze
    Closed Accounts Posts: 190 ✭✭Febreeze


    stevek93 wrote: »
    OP this has been probably mentioned already but save save save and don't for the love of god touch it! Save what you mortgage repayments are going to be each month. Again don't touch it not even 1c leave it alone! Do this for atleast 8 to 12 months. There is a lot of other things that is required but this is VERY important.

    That's exactly what I plan to do :-)

    I am currently saving with the credit union and I know exactly what they are like when it comes to dipping into savings. One time I went in and the cashier literally gave me a step by step on why the credit union prefer to see you save rather than take it out and also it could affect my chances if I ever do want to get a credit union mortage (we'll shop around). Mind you this was years ago but that stuck with me I haven't dipped into my savings since. Thankfully I can afford to have a "rainy day" savings with the post office so I can use that towards the house or Christmas or other occasions so I'm not struggling.

    Onwards and upwards :-)


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    #207
    The Parish King
    Registered Users Posts: 168 ✭✭The Parish King


    Hi all- would anyone know what a broker’s fee would typically be? I’d happily reach out to Bank’s directly if it meant cutting down on costs, but I’ve also heard that brokers usually make their money off the Banks rather than the mortgage applicants?

    Is there anywhere useful to check good brokers in the area? It’d also be useful to understand what the key advantages of using a broker are so I can ensure that the broker we go with really focuses on these areas.

    Finally(!), at what stage should you reach out to a broker? Should you wait until you have your deposit saved, or 6/12/18 months in advance? I’m fairly clueless on this so any help would be much appreciated!


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    #208
    Febreeze
    Closed Accounts Posts: 190 ✭✭Febreeze


    The Parish King wrote: »
    Hi all- would anyone know what a broker’s fee would typically be? I’d happily reach out to Bank’s directly if it meant cutting down on costs, but I’ve also heard that brokers usually make their money off the Banks rather than the mortgage applicants?

    Is there anywhere useful to check good brokers in the area? It’d also be useful to understand what the key advantages of using a broker are so I can ensure that the broker we go with really focuses on these areas.

    Finally(!), at what stage should you reach out to a broker? Should you wait until you have your deposit saved, or 6/12/18 months in advance? I’m fairly clueless on this so any help would be much appreciated!

    Can I use my new found expertise on this haha!

    As far as I know, most brokers are free. The ones I've looked at are free anyways. I emailed with my enquires and they were quick enough in responce. It seems like most make their monies from the banks but again from reading other threads, I also saw that some brokers charge a fee and apparently they are the ones to try and avoid.

    Have a look on Google and email them and see what they say. Many have said to me that I can wait until I've hit my target savings or I can email them at any point of the process and ask them any questions if needed, one also said they are more than willing to help me with any fiance enquires. I always ask about fees as I'm the one with the stupid look on her face and would be stung with a fee and many have said they don't charge (or follow up from the banks) until I've physically went to them with my documents and do the actual process. I emailed 3 brokers (over eger, I know!) and they've all pretty much quoted me the same thing, they've all said to keep saving and when I feel comfortable enough to go ahead for a mortage to approach them.

    Good luck :-) (also ask as many questions as you need too as I'm learning loads too!)


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    #209
    Jen Pigs Fly
    Registered Users Posts: 2,770 ✭✭✭Jen Pigs Fly


    The Parish King wrote: »
    Hi all- would anyone know what a broker’s fee would typically be? I’d happily reach out to Bank’s directly if it meant cutting down on costs, but I’ve also heard that brokers usually make their money off the Banks rather than the mortgage applicants?

    Is there anywhere useful to check good brokers in the area? It’d also be useful to understand what the key advantages of using a broker are so I can ensure that the broker we go with really focuses on these areas.

    Finally(!), at what stage should you reach out to a broker? Should you wait until you have your deposit saved, or 6/12/18 months in advance? I’m fairly clueless on this so any help would be much appreciated!

    Most are free, they take their fee from the bank.
    Mine wasn’t, but he was also a financial advisor, he helped from everything from how we were spending, how to save, how to shop around, helped us with our insurance for the house, and will also help us in 3 years see can we get a better mortgage deal.
    It was a good way for us to get in a better financial position, and how we can continue being in a better position,

    He also liased with our solicitor and Estate agent, advised what to avoid, and also if we are being ripped off.
    He was €300 and so worth it!

    We reached out 6 months before we wanted to go drawdown as we both knew we needed help getting our finances in order.


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    #210
    Cuddlesworth
    Registered Users Posts: 13,983 ✭✭✭✭Cuddlesworth


    Malcolm Late Funeral wrote: »
    That doesn't make any sense, there is no reason not to have an account in the bank which you get your mortgage from.

    Also it would be a struggle since many people have multiple accounts in different banks.

    Having seen this in 2008-2010, if the **** hits the fan and you struggle to pay the mortgage but have a small amount of money there as a emergency fund, accounts in the same bank mean the bank can take it without approval from you.


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    #211
    stevek93
    Registered Users Posts: 3,088 ✭✭✭stevek93


    Febreeze wrote: »
    That's exactly what I plan to do :-)

    I am currently saving with the credit union and I know exactly what they are like when it comes to dipping into savings. One time I went in and the cashier literally gave me a step by step on why the credit union prefer to see you save rather than take it out and also it could affect my chances if I ever do want to get a credit union mortage (we'll shop around). Mind you this was years ago but that stuck with me I haven't dipped into my savings since. Thankfully I can afford to have a "rainy day" savings with the post office so I can use that towards the house or Christmas or other occasions so I'm not struggling.

    Onwards and upwards :-)

    Good positive attitude OP best of luck!

    One thing I would like to ask people here is well what I done was saved into the bank what I was going to take out my mortgage with instead of the OP saving into the credit union should the OP be doing this instead?


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