The complete 7 step guide to buying your first property

Are you looking for a simple guide on how to navigate the property and mortgage process? Here is a useful guide that will help you navigate the process:

1. Get your Deposit in Place: You will need a minimum deposit of 10% to purchase a property, but it is a good idea to save a higher deposit as there will be additional expenses such as valuation costs, legal expenses, and stamp duty. If you don’t have the 10% deposit, there are government supports which are available including the Help to Buy Scheme and the First Home Scheme. Be sure to talk to a mortgage expert like the team at Switcheroo.ie to see if you can qualify for these supports and whether they make sense given your circumstances.

2. Scrub up your financial affairs: Before applying for a mortgage, it's essential to have your finances in order. Banks will review at least six months' statements for all your accounts and credit cards, so avoid having difficult financial issues to explain. Don’t go overdrawn, try and pay off your credit card in full each month, and be wary of taking out any personal or car loans.

3. Chose the right mortgage product and provider: There are a variety of options that different lenders offer, so you need to choose the option that’s right for you. Compare mortgage costs across providers using the Switcheroo.ie mortgage cost comparison tool. Some banks might be able to lend you a little bit more than others due to their internal affordability calculators, which can make the difference between getting the house you want or not. Processing your mortgage application through a mortgage intermediary like Switcheroo.ie will be of significant help to you. They can provide you with a detailed cashflow comparison and support you through every step of the mortgage process.

4. Approval in Principle: While not a formal mortgage offer, your Approval in Principle (AIP) is a good indication of what a bank is willing to lend you. Many estate agents require you to have an AIP to view a house, so it’s worth getting one to know what you can afford.

5. Picking your Dream Home: Take your time to consider all the factors before making the leap and purchasing your first home. Consider future events, like having more children, which means more bedrooms, local schools, parks, etc.

6. Get your Loan Offer: Once you have found the house and had an offer accepted, it's time to get the formal loan offer from the bank. The loan offer will allow you to exchange contracts with the vendor, at which point your dream of owning a new home is coming close to fruition.

7. Drawdown and moving in: The final stage of the process involves your solicitor ensuring that the property you are buying stacks up from a legal perspective. You will have to get mortgage protection insurance, which is in case you die during the term of the mortgage. You will also need home insurance that covers the rebuild cost of the property.

There is lots of detailed work that goes into buying your dream home so its best to get the right advice. Switcheroo.ie is a regulated mortgage intermediary and can help you with each step of the mortgage process. Register here to get started.