Despite the collapsed economy, persons with a history of employment, a good credit rating, and the ability to make a large down payment are still able to get a first time buyer mortgage with relative ease. While Irish banks are skittish when it comes to lending, they still have a strong desire to make money were possible, and many Irish persons with exceptional credit are desirable bets for them to make. Working professionals in sound careers, such as law, medicine, banking and accountancy are sure to continue being employed still in the current economic slump, as well as having a large enough income to where they can pay for more of a decent house on their own. Persons who are older in age, namely their late 20s and early 30s, are also more likely to receive a loan since they are more likely to retain employment.
The Irish government has also stepped in to try and help out first time homebuyers over a list of grants, guaranteed loan programs, and other means of assistance. As this sort of help tends to vary from one region to another, it is a good idea to check in with a local magistrate before purchasing a home. Many charity organisations, run both by the government and by the church, have the sole purpose of helping people get the money and loans they need in order to buy a home. Since this money is often given away in terms of down payment assistance, reduced loan rates, or tax credits, it’s important for first time borrowers to ask for all the help they can get, since it will help them save a great deal in the long run.
However, not everyone looking for a first time buyer mortgage will match such rigorous requirements. In fact, most first-time homebuyers have modest credit and are in their early-to-mid 20s, hoping to get a house big enough to put their family in. Because these individuals may be a bit of a credit risk, banks are nervous to lend to them, and they must prove that they are a good risk for the bank before they will get a loan. In general, the best way for people in such conditions to improve their chances is to pick a small, less costly house and try to get a large down payment, 30% of the closing cost or more. This may require the potential borrower to sell investments, ask for help from family members, or simply hold off on buying a house for a few years. However, banks are much more likely to lend out smaller amounts of money, since there is less for them to lose.