askpaul - EPISODE 2! Tips On Completing A Mortgage Application in Ireland

Описание: In this episode I give a few tips on completing a mortgage application and hopefully help people secure a mortgage offer.

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Hi, and welcome to episode two of Ask Paul. Today's episode is gonna focus purely around mortgage application forms, and we're gonna try and help you get a clean application into the bank and in turn get your first mortgage approval. There's a few things to look out for here, folks, but let's be honest and let's be commonsense about the whole thing. The first part of the application is the simplest part, name, date of birth, your occupation, and the kind of property you're looking for and the amount you're looking to borrow. What kind of trips people up is the nitty gritty that it gets into behind the application, so the things you need to accompany your application with. The first thing would probably be an employer's certificate certifying your salary, your years of service, and that you're permanent. If you're self-employed, you're gonna need three years accounts and maybe an auditor's report and a tax clearance certificate. If you're PAYE worker you're probably going to have to give your three months wage slips as well to prove your income for the last three months. The next thing you're going to be asked for is a six months accounts, for your current accounts, or any other loans you have outstanding. For your current accounts, one thing to look out here for the bank, they want to see you have the ability to repay the mortgage you're looking for. They don’t look for clean accounts. If you have six months, if you get the last six months, maybe give yourself a month or two to make sure your bank accounts are really, really in good order. What I mean by that, if you have an overdraft try not be in it every month. Try not to be broke by the time it gets to payday. I know it's easier said than done, but try to have a couple of quid in your account by the time you get to payday, so it doesn't look like you're on the breadline. Obviously, it's going to help your application form. One thing to point out here is a big, big no-no with the banks. Any type of Paddy Power, Betfair, or any type of gambling on an account, even if it was just a couple of quid on a football match or race like that is a big no-no, they're automatically throwing you out the door. So again, just make sure you keep your accounts clean from that point of view. The other thing that doesn't work in clients' favor is existing loans. Not that the banks dislike them, they like to be able to see that you can repay loans, but it really has an impact on what you can borrow. I'm gonna give you an example. A client that has a 50,000 annual income can borrow roughly 195,000 Euro. If that same client has a 500 Euro repayment on a loan, so, let's say a car loan, or a credit card, or a, I don't know, student loan, say, well, then he can now only borrow 184,000 Euro. So that's 11,000 in the difference. So, again, before you go for that mortgage application, try if possible to get rid of your loans. It would really, really help you. The other thing, I suppose you wanna talk to when you get to these things is, using your debit cards. So, when you get your statements in, your six-month statements, it for sure has got loads of debit card stuff, looks like you're spending every single day. It's not going to be a great sign. Try maybe at the beginning or the end of the week taking a couple hundred quid out and use that for your discretionary spend, rather than using your debit card all over town. And that's a big, big hint. The next thing I suppose I'm gonna say to you is, take your time. I know it's exciting, you're getting on the first-time property ladder, and you're really, really excited, but again, make sure you get your accounts in order, get the correct property, and go through the correct bank lending institution. Our next episode is gonna focus on whether to go through a mortgage broker or directly to the bank. And we're gonna go through the pros and cons of both. So maybe come back here to us next week and have a look at that. Don't forget to subscribe on YouTube to our channel, and also like us on Facebook, and follow us on Twitter. As always any questions please do not hesitate to contact me at: [email protected] – or alternatively drop a name in the comments box below with your question. Thanks for tuning in.