LATEST PROPERTY NEWS AND QUESTIONS 15-May-2024
BANKS & HOUSE REPOSSESSIONS: MONAGHAN
15th May 2024
When approaching a bank to obtain a mortgage for a repossessed house, it's important to follow a systematic process to increase your chances of a successful loan approval. Here's a step-by-step guide:
Research and Identify Repossessed Properties:
Conduct thorough research to identify repossessed properties you are interested in. Check bank websites, auction listings, and real estate platforms.
Get Pre-Approved for a Mortgage:
Before approaching a bank, get pre-approved for a mortgage. This involves submitting your financial information to the bank, and they will provide a pre-approval letter indicating the amount you can borrow.
Select a Lender with Experience in Repossessed Properties:
Choose a bank or lender with experience in financing repossessed properties. Some financial institutions have specialized departments or procedures for handling these types of transactions.
Contact the Bank's Mortgage Department:
Reach out to the mortgage department of the bank you have selected. You can do this by visiting a local branch or contacting them through phone or email.
Schedule a Meeting or Consultation:
Schedule a meeting or consultation with a mortgage advisor at the bank. During the meeting, discuss your interest in purchasing a repossessed property and provide details about your financial situation.
Provide Financial Documentation:
Be prepared to provide detailed financial documentation, including proof of income, employment history, credit history, and details about your assets and liabilities.
Discuss the Property:
Clearly communicate the details of the repossessed property you are interested in. Provide any relevant information about the property, including its location, condition, and asking price.
Ask About Special Requirements:
Inquire about any specific requirements or considerations related to financing repossessed properties. Some banks may have additional criteria or conditions for these types of transactions.
Discuss Loan Terms and Interest Rates:
Discuss the loan terms, interest rates, and any associated fees with the mortgage advisor. Compare these details with other lenders to ensure you are getting a competitive offer.
Get Information on Property Valuation:
Inquire about the bank's process for property valuation. The bank may want to assess the property's value before finalizing the mortgage.
Understand the Approval Process:
Gain a clear understanding of the mortgage approval process, including the timeline for approval and closing. Be aware of any potential challenges associated with repossessed property transactions.
Be Prepared for Quick Turnarounds:
Repossessed properties may have tight timelines, so be prepared for quick turnarounds in the mortgage application and approval process.
Seek Legal Advice:
Before finalizing any agreements, consider seeking legal advice to ensure that you understand the terms and conditions associated with financing a repossessed property.
Negotiate and Finalize Terms:
Negotiate terms with the bank and finalize the mortgage agreement. Ensure that all terms are clearly stated in the contract.
Remember, due diligence is crucial when dealing with repossessed properties. Thoroughly assess the property, conduct inspections, and be aware of potential challenges. Working with a real estate attorney can provide additional guidance and ensure that all legal aspects of the transaction are addressed.
15th May 2024
OBTAINING A MORTGAGE: SOME COMMON QUESTIONS
How long does it take to get a mortgage?
This can depend on both the lender and you, and whether you’re moving home, remortgaging, or switching your mortgage.
You can usually get an Approval in Principle (AIP) within 10 working days, but a mortgage offer will take longer, depending on the situation.
If you’re remortgaging or switching lenders, the whole process typically takes a few weeks.
If you’re buying a property, it can take several months from when you apply for a mortgage, to completion. Read our guide How to prepare for a mortgage application to ensure the process is as quick and smooth as possible.
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Get preapproved for a mortgage from multiple lenders. This process involves the lender reviewing your financial information and providing a preliminary loan amount. A preapproval letter can strengthen your position when making an offer on a home.
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Manage Your Finances Well: Avoid late payments and manage your accounts wisely, as your credit history is essential.
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Do you need a mortgage broker?
No, you don’t have to use a mortgage broker (mortgage credit intermediary) but a broker can be really helpful when you are starting out on your mortgage journey.
In circumstances where it’s harder to get a mortgage, for example, if you have poor credit a broker can find specialist mortgage lenders that are more willing to lend.
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Repayment and interest-only mortgages
This affects how the loan is paid back and whether you’ll need a separate plan to pay off the mortgage balance.
Repayment mortgage: Pay the mortgage and interest each month so your balance is zero at the end of the term.
Interest-only mortgage: Only pay the interest you owe on your mortgage balance each month and pay a lump sum at the end of the term.
Interest-only mortgages are less common and aimed at buy to let property investors.
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How much you can borrow with a mortgage? breaks down the rules on mortgage lending in Ireland, but the amount you can borrow depends on several things, including your:
Income
Loan to value (LTV)
Other outgoings
Credit history
Age
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Remember, finding the right mortgage broker is a personal decision, and it's important to choose someone you feel comfortable working with and who meets your specific needs. Taking the time to research and ask questions can help you make an informed choice.
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Security Location/Type: The property you intend to purchase can affect your mortgage terms. Lenders may have preferences for certain locations or types of properties. Be aware of this and research how your property choice aligns with your lender's criteria.
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IrishHouses: Mortgage Debt, Arrears and House Repossession
Disclaimer: Although we will do our best to provide you with correct details, information provided is subject to errors or omissions. IrishHouses.ie is a private blog on the subjects of mortgage debt, arrears and house repossession in Ireland.
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