Steps Involved in Buying a Home in Ireland
So, you’ve decided that you want to buy a house in Ireland. It can be difficult to know where to go from here – after all, a home is one of the most important purchases you will make in your lifetime. If you’re feeling overwhelmed, read on to see the process broken down into more manageable steps. And as always, don’t forget to ask your solicitor if you have any questions or doubts.
1. Set a budget & save for a deposit
First things first, you will need to set a budget. This means assessing your income and savings to determine what you can afford. You can use an online budget planner to help you. The more you can save, the better – you will need to pay 10% upfront as a deposit. Give yourself plenty of time to save up.
Now is the time to check with potential lenders to get a statement of how much they are prepared to lend you (based on your current income and savings). This is called Mortgage Approval in Principle. This information will indicate what price range you can consider when looking for somewhere to buy, and it will improve your chance of securing your chosen property.
Remember, there are many costs involved in purchasing a house – not just the mortgage. Some of these costs include Stamp Duty, Legal Fees & Mortgage Protection Insurance, which is compulsory.
Note: You might also be eligible to qualify for one or more housing grants – particularly if you are a First Time Buyer, so be sure to look into this. Your Solicitor will be able to further advise you.
Some of the costs involved in buying a home, which you will need to consider.
2. House Hunting
Once you have a sufficient amount saved up for a deposit and you know your budget, it’s advisable to begin house hunting. You can check property portals and register with estate agents to get property alerts for your chosen area.
We advise creating a property checklist detailing the features you would like to have in your future home and bringing this with you to viewings. Some examples include: number of bedrooms, distance to schools, garden, parking, etc.
Your budget will decide the type of house you can expect to purchase, so set realistic goals here. The Property Price Register, which lists the prices of houses in a particular year and area, will help you with this.
Give yourself plenty of time to assess the house and surrounding neighbourhood. Take pictures if you can, this will help jog your memory when it’s decision time. Ask the right questions – this article should help you.
It may help to bring somebody with you who is experienced in having bought a house before – they will know what to look for.
3. Make an offer & go Sale Agreed
Once you find a property you like, negotiate a fair price with the seller. If you are happy with the price, you should make a formal offer. If this offer is accepted, you will reach a “Sale Agreed” status. At this stage, you will be required to pay the booking deposit (maximum 5% of the agreed purchase price). Don’t worry, this is fully refundable up until the Contracts are signed.
4. Organise a House Survey
Did you know: A seller is not legally required to disclose any flaws in a property to you. Therefore, you should hire a qualified engineer to conduct a structural survey to highlight any issues before you finalise the purchase.
This survey will cover the structural integrity of the property, as well as any legal issues regarding planning permission or boundaries. Any problems that you might not have been aware of when you made your offer will be brought to light by the engineer’s report, and you may choose to revise your offer to reflect this, request repairs before proceeding, or opt out of the transaction altogether. Ensure you hire a qualified professional.
5. Contracts Issued & Pre-Contract Queries Raised
The Contracts will be issued to your Solicitor, who will review them thoroughly. Any questions or issues identified will be addressed through pre-contract queries. This ensures all legal aspects are covered and there are no hidden surprises.
6. Signing the Contracts
Once all queries are resolved and your Solicitor has reviewed the final documents with you, both you and the seller will sign the contracts. You will also sign your mortgage documents and pay the non-refundable deposit to seal the deal (10% of the purchase price, minus the booking deposit already paid).
7. Closing the Deal
While your Solicitor moves to close out the purchase and finalises the transfer of funds, you should purchase Mortgage Protection Insurance and Home Insurance – these are typically required by the lender.
Be sure to consider the logistics of moving – maybe you need to enlist the help of a removal company.
8. Purchase Completion
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