Thinking of buying a house? Here are four things you need to do to make sure you will be ready

1/ Save a deposit

Saving a decent deposit is very important for buyers hoping to secure the best mortgage. As well as being in steady full time employment a mortgage lender will want to see proof that you are capable of saving towards your first home.

It is possible to get help with your deposit from parents or family but you will need some history of savings or paying rent to show repayment capacity. AIB and Bank of Ireland for example will not approve you for a First Time Buyer mortgage if you have no proven repayment capacity. The two main ways to show repayment capacity are as follows. The first option is to save consistently for at least 6 months prior to seeking mortgage approval. The second option is to be able to show your monthly rent being paid from your bank account for at least 6 months. A consistent saving or rent history will substantially increase your chances of getting a mortgage.

2/ Get your bank account and credit rating in order

As well as preferring borrowers with a history of savings, mortgage lenders also want people who keep their bank accounts in good order. You will need to pay your bills and loans on time, preferably by direct debit or standing order. Referral fees and missed direct debits will ruin your chances of getting a mortgage.

If you are worried that you may have had some credit problems in the past then you can check your credit rating with the Irish Credit Bureau at http://www.icb.ie/ You can apply online for a copy of your credit report and you will then be able to see if there is a problem or not.

3/ Talk to a Mortgage Broker

A good mortgage broker can help you compare the different mortgage products available and help you decide which one's best for you. They will also know what each mortgage lender will and won't do for you. So by using a Mortgage Broker you give yourself the best possible chance of getting approved and also of getting the best deal.

However, before you choose a mortgage broker bear in mind that some brokers offer products from a limited number of lenders while other brokers offer products from a wide range of lenders. It's a good idea to do some research of your own and see what lenders your chosen broker has access to.

4/ Get mortgage approval in principle

Before you go house hunting make sure you have a mortgage approval in principle. There is no point looking at properties and then realizing that they are out of your price range.

To get an approval in principle you will generally need the following documents,

6 months bank statements
3 recent payslips and a P60 if you are a paye employee or
2 years audited accounts if you are self-employed
savings statements
Loan statements

It is never too early to seek mortgage approval. A good mortgage broker like MortgageLine will not charge you anything for getting an approval in place. If it is not possible to get an approval now then you can get pointers on what you will need to do to get an approval at some point in the future.