Your Guide

Buying your first home is a milestone achievement! It's one of the most important purchases you will make. As such, it is thrilling and exciting as well as daunting and a little stressful! You should enjoy the process and remember a little planning and organisation can help alleviate any stress. In order to help you we have compiled a brief guide to answer some questions you might have and to guide you through the process. We have broken it down into 6 simple steps:

Step 1: Know how much you can afford

When purchasing your home there are a number of costs you need to calculate:

Deposit:
When approaching any lending institution for a mortgage, showing records of regular savings can be beneficial. Although some banks now offer 100% mortgages, terms and conditions can be very strict. The majority will only approve 92% of the property value. You should therefore be prepared to have to provide 8% of the property value as a deposit. Records, such as bank statements, showing this amount will be required in order to gain 'Approval in Principal' for your mortgage.
Mortgage:
Research you mortgage options. There are many different products and options available in the market so you should contact a number of banks, building societies and mortgage brokers to make sure you are getting the one most suited to your needs. Don't be afraid to ask questions!!
Stamp Duty:
This is a tax charged by the government for the processing of documentation relating to the sale or purchase of any property. Fortunately First Time Buyers are exempt from paying this tax on new and second-hand houses and apartments.
Legal Fees:
When purchasing your home you will need a solicitor to act on your behalf. As there is no standard charge for the purchase of a property it is wise to approach a number of solicitors so as to ensure you get a competitive price. Recently some firms have introduced a flat charge, however in addition to the professional fee enquire about any related charges that you may incur such as registration fees.
Valuation Fees:
In order to attain mortgage approval your lending institution will require an independent valuation report of the property. This is a precautionary step to ensure that the property is worth at least the amount you are paying for it. A valuation should cost approximately €150. Your lending institution will discuss this in more detail with you.
Surveyors Fees:
It is highly recommended when you purchase a property that a structural survey be carried out by an independent surveyor. Use a reputable company and agree all costs prior to the survey being conducted. You should ensure that your survey is available to you prior to signing the contract for sale so that you are fully aware of any difficulties or issues that may arise in relation to the property prior to any agreement.
Home Insurance and Life Assurance:
It is generally a condition of the mortgage that Home Insurance and Life Assurance with Mortgage Protection is taken out. There are a variety of levels of cover, so it is advisable to speak with your lending institution to assess which are best for you. Taking a few small security measures such as fitting an alarm system and smoke detectors in your new home can reduce home insurance. Discuss any available discount options with your lender.
Other Costs:
These can include connection charges for utilities such as electricity, gas, phone and cable, removal fees, decorating and furnishing expenses and the purchase of appliances.

We know that there seems to be a lot of additional charges listed but it is a comprehensive list, the majority are once off charges and you have to remember many are precautionary measures to protect you in your purchase!

Step 2: Finding the Perfect Property

Looking for your new home is an exhilarating experience. Enjoy it! Remember to take your time. You may have to view a lot of properties before you find your perfect one. Use the search as a way of gathering ideas, noting what you liked and disliked about properties to help you form a better idea of your own ideal requirements. Know what you are willing to compromise on and what you are not and be realistic.

We are here to help. When you have an idea of what you are looking for let us know so we can help you with your search. When viewing a property some of the things you should consider are:

The area / locality. Proximity to family/friends/work
The size of the property / the number of bedrooms
The facilities and amenities in the area
Transport connections and routes
It is a new build or second hand home?
Are you prepared to do renovations or redecorate?
Is there storage space within the property?
Is there parking with the property (private drive, on street parking, car park facilities)?
Is there a garden or communal garden?
Is there potential to extend?
In the future will it be easy to re-sell?

Step 3: Make Your Offer

The process here will differ slightly depending on whether you are a buying a newly built home or a second-hand home.

If you are purchasing a property within a new development you simply have to pay a deposit upfront and the balance once the property is completed and ready for you to move in!

When purchasing a second-hand property it will be by private treaty or by auction. For the vast majority of first time buyers it will be by private treaty, which will require you making a verbal offer to an estate agent. The agent should notify all interested parties of any bids offered so as to allow them the opportunity to place a counter bid. So as to protect the consumers, I.A.V.I. members voluntarily keep a written record of all bids taken.

Once your final bid has been accepted, a booking deposit must be given to the estate agent to ensure 'sale agreed' status. Please note that this does not mean that either party has entered into a legally binding agreement. This only happens at the signing of the contracts. Your solicitor will go through these details with you.

Step 4: Finalise Mortgage, Valuation, Letter of Offer

Having found your home you are ready to finalise the arrangements! Contact your mortgage advisor to finalise your agreement. At this stage you will need to provide further documentation. You can have all of this ready in advance so as to avoid any delays. Generally you will be require to provide:

Proof of income including a P60, a certificate from your employer and a number of your most recent payslips.
Six months personal bank statements.
Proof of any savings that you have.
Details of any loans currently outstanding.

If you are self-employed you will need to provide business and personal bank statements for the last 12 months in addition to audited accounts for the last 3 years and your projected income for the next twelve months. Your accountant will be able to assist you in gathering this information.

As detailed, you're lending institution will, at this stage, require an independent valuation is carried out. Your mortgage advisor will arrange the details of this valuation with you. At this point you should also arrange for a structural survey to be conducted by a certified architect.

Once all of the above documentation has been submitted and the criteria met, your lending institution will send you a Letter of Offer for your mortgage. You should review this letter with your solicitor before signing and returning.

Step 5: Exchange of Contracts, Home Insurance and Life Assurance

At this point your solicitor will send a formal written offer on your behalf. They will carry out some searches on your behalf to ensure that everything is in order before a date to complete the sale is agreed.

The seller's solicitor will forward a contract of sale to your solicitor. Once you sign this contact you have entered a legally binding agreement. Congratulations - you are a homeowner! A deposit of approximately 10% will be required.

You should, if you have not already done so, finalise the details of your Home Insurance and Life Assurance with your broker or lending institute. Once you receive your cheque from the lending institute, your solicitor will close the sale and you will receive the keys to your new home!

Step 6: Moving

It should be fun, but moving can in fact be quite stressful. Make it easier on yourself by planning ahead and use it as an opportunity to de-clutter!

Register your change of address with your bank, building society, clubs as well as your utility companies. Make sure to inform the ESB, Bord Gais, Eircom etc of the last day at your current address and of the first day at your new home. Don't get left with someone else's bills! The website www.newaddress.ie is a great help. Simply fill in your details and let it do the work for you - for free!
When contacting utility companies remember to allow enough time for connection. There is often a waiting period.
Contact An Post to re-direct your mail for the coming weeks until you are sure you have changed your postal details with everyone.
When packing, mark the boxes with what is inside. It will make it a lot easier when you start to unpack! Wrap any breakables carefully.
If you are currently renting make sure to give your landlord notice!

Finally take a deep breath and relax!!

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The information contained in these pages is, to the best of our knowledge, true and accurate at the time of publication. It is intended solely for information purposes and as such Hegarty Properties accepts no liability for any loss or damage howsoever arising as a result of use of or reliance upon this information, whether authorised or not.