Alison Fearon from Switcheroo.ie mortgages discusses latest trends in the mortgage market
Are you in the market for a new home? Congratulations! Buying a property can be a thrilling and life-changing experience. But before you jump into the process, there are some things you should avoid doing. Here are some of the most important things NOT to do when purchasing a property.
- Buying large personal items on finance or even outright: Purchasing something like a car on finance or even in full can affect your loan-to-income ratio (LTI), which is the amount of monthly debt payments you have relative to your monthly inflow of cash. This ratio is one of the most significant factors that determine the amount of home you can afford, or if you will qualify for a mortgage at all. So, avoid making any significant purchases before you close on your new home.
- Changing jobs before completing the purchase Switching jobs can kill the deal, especially if you are still in the probationary period. Banks usually require at least two full payslips from your new employer to approve your mortgage. Waiting for the probationary period to end and applying for a new mortgage application can also make your offer expire. So, before changing jobs, consult with your lender and understand how it will affect your mortgage application.
- Waiting to gather your documents: Most sellers require a pre-approval letter before they accept an offer to ensure they are working with a qualified buyer. In a competitive market, you don't want to waste any time. Waiting to contact a mortgage company to obtain a pre-approval letter can cause the seller to accept another offer. So, be prepared by gathering your financial documents, such as bank statements, tax returns, and payslips, in advance.
- Paying off existing debt without consulting your broker or lender: Using: your savings to pay off existing debt before speaking with your broker or lender may not always be the best move. In some cases, your savings can be better used towards a deposit, and your existing debt can be consolidated in your new mortgage at a lower rate. So, before paying off any debt, consult with your broker or lender to make an informed decision.
Buying a property is a significant investment, and you want to avoid making any mistakes that can hurt your chances of getting approved for a mortgage or buying the home you want. So, remember these tips and register at switcheroo.ie so you can avail of free expert advice and guidance throughout the entire mortgage journey. Happy house hunting!
If you are considering this or any other mortgage product, be sure to get professional advice and register at Switcheroo.ie
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