A mortgage application checklist is an invaluable tool for the first-time home buyer. Knowing you have all the documents, reports, and even proof of ID on the desk is a big help, and our checklist for a mortgage application highlights all that is needed.
Even if you are a second-time house buyer, a list of what you need for the mortgage is a good idea. After all, what is suitable for the first-time house buyer can be just as true for the person buying a second home.
Some of what goes onto a mortgage application checklist is probably obvious to most people, but you would be surprised by how many of those applying for a mortgage forget even the simple bits necessary.
From proof of income to bank statements and even valuation reports, all of these are needed for a mortgage application.
MortgageOne’s mortgage application checklist will prepare you and have you ready for every twist in buying your first home.
A good mortgage application checklist
A good mortgage application checklist leaves nothing to chance. It will guide you along the mortgage application process and prepare you well for those unexpected parts, and those pieces you probably have already… don’t you?
Your mortgage application checklist:
Six months of your most recent current account statements
Six months’ statements of any savings, investment, and loan accounts
A recent P60 and payslips from the last few months
Evidence of your ability to pay the mortgage
Copy of a rental agreement and proof of paying the rent
Letter from a solicitor outlining obligations if divorced or legally separated
A residency permit if working in Ireland on a work visa
Documentation to show your tax affairs are in order for any non-PAYE income
Credit clearance from another country if you have worked abroad
A valuation report for the property
Contract of employment if an employee
Details on commission and other salary top-ups
Self-employed accounts for the previous two years
A statement from an accountant on tax affairs
If you are applying for a mortgage with your spouse or partner, you will need to have each item listed above from both of you.
Six months of your most recent current account statements will show the lender how you manage your income and outgoings. If you are a customer of the lender, they will have the statements to hand, but you will need copies from any other bank.
Six months’ statements of any savings, investment, and loan accounts show the lender what assets you have and how you save or invest extra income each month.
A recent P60 and payslips from the last few months will show the mortgage lender that you have an income to cover your monthly outgoings, including the proposed mortgage. Your recent payslips, usually for the last three months, will indicate that income has not changed since the P60 was issued.
Evidence of your ability to pay the mortgage could be shown by your salary being paid into the current account, but you must have the proof of income to show your lender.
Copy of a rental agreement and proof of paying the rent is necessary if you are not paying rent from your current account, and it also shows you are meeting the monthly rent due.
Letter from a solicitor outlining obligations if divorced or legally separated can be very important for a mortgage application. The lender will want evidence that you can pay the mortgage after covering all other costs.
A residency permit, if working in Ireland on a work visa, shows that you are legally working in Ireland and earning a salary while not under threat of deportation.
Documentation to show your tax affairs are in order for any non-PAYE income is a standard certificate from Revenue and covers the extra income you have outside of a salary.
Evidence of other income is vital if you are using it to help pay the mortgage. For example you may work part-time on weekends, and a payslip or proof of any investment income can be very useful.
Credit clearance from another country, if you have worked abroad, is another item on the mortgage application checklist that many people forget about. If you have been away for three years or more, the lender will want to know that you do not owe money in the other country.
A valuation report for the property is what the lender will need so that they can see the property is worth the money they are lending you. The lender will only give a mortgage based on the valuation report. The spec from the estate agent will not do here, and the lender will appoint a valuer to assess your property.
Contract of employment if an employee shows the lender that you have a full-time position and will continue to be paid at the salary shown on your bank statements. The contract should indicate that your job is permanent and of any possible retirement age if you are in your 50s.
Details on commission and other salary top-ups are a good indicator of how your salary will pay the mortgage for you. The lender will need to know that you are not solely dependent on commissions or need regular overtime to make the monthly mortgage payments.
Self-employed accounts for the previous two years are a minimum for the self-employed applying for a mortgage, but it is recommended that you have three years ready for the lender, including the most recent accounts due.
The accounts will need to be audited by an accountant, and you will need proof of payment of taxes due from Revenue.
The self-employed will also need to show their regular income and how their business can continue to provide an income.
A statement from an accountant on tax affairs may be necessary for both the self-employed and PAYE employees who have sources of income outside of their work. The mortgage lender will need to see that all taxes due have been paid and no outstanding tax bill is coming down the line.
Identification is an item on the mortgage application checklist forgotten by many people. The mortgage application is often returned and delayed because the applicant has forgotten to include their identification.
You must include a copy of your passport or driving licence and a recent utility bill or bank statement dated in the last three months showing your full name and address.
The mortgage lender will need proof of your PPSN, such as a Public Service Card or on a letter from Revenue.
Signed application form may seem obvious, but many mortgage applications have been delayed because the applicant forgot to sign the paperwork. When applying with another person, you should both check that you have signed the application form in all the required spaces.
The mortgage application is the only route to getting a mortgage from a lender. You need to show the mortgage lender that you have a property worth the money you want to borrow, and that you have the means to pay the mortgage.
Filling out a mortgage application form may seem daunting, but following our simple checklist and having everything ready in advance will make it much easier.
The MortgageOne team will be by your side to help with the mortgage application and to iron out any difficulties in the process.
Will I need all the items on the mortgage application checklist?
Yes, you will need all the items included on the mortgage application checklist. The mortgage lender wants to see that you can afford the mortgage and that you can repay it over the coming years.
Paying rent for the last number of years does show you are good at managing your monthly payments, but it is not the only indicator. The mortgage application will dig into your work history and income to see that you cannot only pay, but you can also do so without too much pressure on the bank account.
You can ask one of the MortgageOne lending team for advice on preparing your mortgage application package and to make sure you have everything ready in advance.
A mortgage application checklist for second-time buyers
A mortgage application checklist for second-time buyers of a house in Ireland is the same as the first-time buyer one, but you may need to update the documents.
The mortgage lender will want to see the recent bank statements. A lender will need to see if there are changes in income, if you can afford a more expensive home, and if the new property costs more than the first one.
You will be older than when you first applied for a mortgage. Your job circumstances may have changed, such as you could be earning a higher salary or are no longer self-employed.
The deposit needed to buy your second home is 20% of the house’s value, and you will need proof of paying this for the mortgage application.
Buying a second house is not a simple matter of switching the mortgage from one home to another, but if you follow our mortgage application checklist, you can make it as easy as possible.
MortgageOne advisers will help with the second home mortgage and with what you need for the mortgage application.
Call MortgageOne Today
Call MortgageOne today to find out about preparing the mortgage application and what you should have ready by following the mortgage application checklist.
Our experts have the experience to know what each lender wants and exactly what they will need when looking at your mortgage application.
The MortgageOne team has years of experience and knowledge of the Irish market to help get you the best mortgage available.
The team can help with the paperwork, talk you through the process and get you the best value on the mortgage market.
Call MortgageOne today, and let us help with your mortgage application.
