House buying uncovered: Busting five of the most common myths
Brought to you by permanent tsb
When it comes to house buying, trust no one. Except us, of course...
As if buying a house wasn’t complicated enough, it’s made even more confusing by the many myths and urban legends surrounding it, like that guy who was turned down for a mortgage because he took advantage of a free €5 bet 10 years ago. Mick, I think his name was? We think you’ve got more than enough on your plate so we’d like to take the time to bust some of these myths right now.
Myth #1: What you need
Many people believe that to qualify for a mortgage you need a Gaisce Award, a character reference from a minor celebrity, a unicorn horn and a hair from the head of your firstborn child.
While it may seem like you have to jump through a lot of hoops when applying for a mortgage, the requirements are actually much more straightforward than you think. Three months’ bank statements, your P60, your salary certificate and a payslip, as well as your ID, proof of your address and PPS number will do the job nicely.
Check out the full list of what you need for your first meeting with the bank here.
Myth #2: Betting accounts
If you’ve got an online betting account, some will tell you that you’ll never be approved for a mortgage.
Even something seemingly innocent, like having an online Lotto account, could be classed as gambling. While online gambling is not something banks are overly keen on, it won't automatically disqualify you from getting a mortgage. As long as it’s not too frequent and doesn't cause missed payments or lead to your account being overdrawn, it shouldn't be a problem.
If you do enjoy the occasional flutter, try to keep it to a minimum.
Myth #3: Don't judge me
Getting the ball rolling can be scary, and you may be under the impression that you will be judged on everything you do, right down to the monthly chest-waxing regime.
Nope, fortunately this won’t be held against you (not by the bank, at least). As long as you have some money left over at the end of every month you can continue to wax away to your heart’s content.
It might be worth having a closer look at your spending habits to make sure you're not making too many expensive impulse buys. You're not exactly going to be denied a mortgage for picking up a pair of designer jeans online, but it's always a good idea to try cut down on these kind of purchases.
Myth #4: Paying rent
For one reason or another, many believe that paying rent is dead money.
Not anymore! Banks like to see proof that you will be able to pay back your mortgage so your extortionate rent payments might actually come in handy for something.
Myth #5: Getting there
There is a bit of a perception that getting credit approval in principle on a mortgage application is a bit like getting blood from a stone.
That bit’s down to you. It can actually take as little as 72 hours if you have all the paperwork required with your application so get your skates on and get that application in.
Keep your chin up! Don't let other people's negativity and half-truths put you off buying a home. Do your own research and take it step by step. If you really set your mind to it, you can make it happen.
Click here if you can't see the Myth Busting video.
Check out our ‘Home Buyers HQ’ from saving to sale agreed, everything you need to know. If you're looking to start your own home buying journey you can book an appointment with the permanent tsb team today.
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Brought to you by permanent tsb