HabitatIreland.ie/homeowner

Transcription

1 HabitatIreland.ie/homeowner

2 Preparing for your home loan

3 Today... a 12 month view Managing your finances Income & Employment Raising a Deposit

4 Raising a Deposit GiRs / Inheritance / Windfalls / Share Equity 10% Deposit Minimum Solicitors Fees ValuaOon Fee Pre Purchase Survey Furnishing Repairs Stamp Duty

5 Remember QualificaCon Criteria Character Repayment Capacity Loan Security Income & Employment

6 Repayment History Take Control Mortgage Rent Loans Credit Cards Savings History Pay off debts? Or accumulate savings?

7 Current Account Conduct Hardcore overdrar Bouncers and Referrals Undisclosed repayments Spending habits Lifestyle Why is there so much month le1 at the end of the money? LOANS: THE PAYMENTS ON THIS HOUSING LOAN MAY BE ADJUSTED BY THE LENDER FROM TIME TO TIME.

8 Income & Employment ConOnuity & Permanency Employer stability Sector exposure Self employment Calcula&ng your affordability: - Stress test your repayment at an interest rate of 7% - Repayments sum should not exceed 35% of net disposal income

9 Case Study - Jack & Jill Couple, 30 s with one child RenOng in Dublin for paying 900 per month Savings of 12,000 Jack - Employed City Council Labourer 32k pa - Employed for 3.5yrs Jill Self Employed Mobile Hairdresser 18k pa - Established sole trader status 18 months ago 1 Car HP Loan 450 p/m, No other debts or credit cards s

10 Buying 100k 2 bed duplex Budget Asking Price Stamp Duty Legal Fees Mortgage ValuaCon Repairs Total Less 12k Deposit 100, , ,130 89,130

11 Approved Repayments on 89k over 20 = 691 pm Jack s net income = 2,594 Jill s net income = 0 (disallowed for qualificaoon) Less car loan of 450 p/m Income QualificaOon Repayment Net Disposable Income Security QualificaOon 691 Loan Amount 89,000 = = 32% = = 89% 2,144 Value/Purchase Price 100,000 Disposable income of 1,453 before adding 2 nd income which provides a comfort to the applicaoon * Stress tested at an interest rate of 7%, 2% above the standard variable rate

12 If Declined: Implement Approval AcCon Plan 6 months to: Repay car hp facility CerOfy Jill s self employed income Other AcOons to Improve QualificaOon: - Extend loan term (subject to age) - Reduce expenditure to increase deposit - Guarantor / Co Borrower

13 Understanding the Mortgage Process

14 The Mortgage Process What to expect when you start the mortgage applicaoon process... Terms of Business Reasons Why Gather documentaoon Make appointment with bank or broker Mortgage Interview Fact find Advisor conducts market research Advisor makes recommendaoons ICB Report ApplicaOon submired ApplicaOon underwriren U/W reverts with decision & condioons Gather & submit addioonal requirements Approval in Principle (AIP) 130 ValuaOon Fee Life Assurance ApplicaOon Contract Exchange Property valuaoon Lerer of Loan Offer Issued Sign offer with Solicitor Submit closing requirements Loan Cheque Issued Allow 3 months LOANS: THE PAYMENTS ON THIS HOUSING LOAN MAY BE ADJUSTED BY THE LENDER FROM TIME TO TIME.

15 QuesCons? Paula ter Brake Partner Weston and Wellington Ltd t/a Home Brokers The Glass House 11 Coke Lane, Smithfield Dublin 7 Head Office: (0) Direct Fax: (0) E: info@homebrokers.ie W: hrps://