Briefly Stages Choices & Extras Building Energy Efficiency Caring for your new home Glossary of Terms

Stages

Appointing a Solicitor

When you have chosen your home and are about to pay your reservation deposit you need to appoint a solicitor at this stage. He or she will act for you throughout the home buying process including checking all the legal paperwork and carrying out necessary legal searches.

You will need to:

• Pass your solicitor’s details to your McInerney sales agent at deposit stage.
• Advise your solicitor of the purchase details, including the expiry date for exchanging contracts.

Remember to keep in regular contact with our sales executive and your solicitor and provide any requested information promptly to avoid delays.

If you are selling your property you will need to instruct your solicitor to apply for the title deeds and also give them the information they require on your existing mortgage. Also you will need to obtain a mortgage for the new property and life assurance. Unless you are in the fortunate position of not needing a mortgage, you will need to secure appropriate finance for this transaction. There are many financial institutions and mortgage brokers who can help you with this.

Applying for a Mortgage

If you are employed

If you are employed your mortgage lender will usually need to see the following forms of documentation:

• Proof of identity, such as passport, driving license or birth certificate.
• Evidence of your income and commitments, such as recent pay slips, a P60 and your recent bank statements.
• Employers reference (particularly where you have not been in your current employment for a year).
• Information from credit reference agencies, which will show your history of repaying loans in the past and from your landlord if you are currently renting.
• Your application could be turned down if you are unable to provide all of the requested information, if you have a poor credit history or you want to borrow more money than the lender is prepared to offer.
• If you should experience difficulty in securing a suitable mortgage we will be happy to advise and assist you.

If you are self employed

It can be more complicated to apply for a mortgage as a self employed person, than if you’re an employee. Mortgage lenders will want a guarantee you’ll be able to repay your loan. For this they will want proof of regular income.

The majority of lenders accept alternative financial documentation as proof when you apply for a standard mortgage, such as three years of audited accounts from a chartered or certified accountant, or three years self assessment tax returns approved by the Inland revenue. Some lenders accept just one or two years’ paperwork if, for example, you have a deposit of 25% or more. In terms of salary multiples, lending criteria will be the same as for the employed, but your accountant could be asked to verify that your business is bona fide. If you should experience difficulty in securing a suitable mortgage we will be happy to advise and assist you.

After Mortgage Approval

Once the lender is certain that you will be able to repay the mortgage – and is satisfied with the valuation report on the property if you decide to have one carried out – it will issue a formal mortgage offer, which you must accept if you want to go ahead. At this point all the legal work needs to be done, which can sometimes take several weeks. Please bear in mind that if your mortgage application is turned down, it is worth trying other lenders who specialise in loans to people with more unusual circumstances.

Your lender will arrange for a qualified valuer to inspect the property you want to buy and check its value. You may have to pay for its valuation, which is carried out purely to help the lender decide whether to provide you with a mortgage on the property and, if so, for how much. It is not designed to tell you about any defects, so to get a full picture you should pay for your own Homebuyer’s report or full structural survey to be carried out. You can get a mortgage on most types of property if they are structurally sound.

Life Assurance

All mortgage types are available – from fixed rates through to offset mortgages. This is also the time to consider your life assurance options. This will help to protect your home and your family's standard of living in the event of the untimely death of you or your partner.

Exchange of Contracts

When you have received your mortgage offer and your solicitor is happy with all the paperwork he or she will arrange for you to sign the contract, at which time a contract deposit may also be required. Contracts must be signed and returned within 3 weeks of receipt. Please be aware that once signed contracts have been exchanged, the purchase of your new home is legally binding. If you already own a home, contracts for both properties should be exchanged at the same time.

Now is also the time to begin planning your furnishings, fittings and any extras you want added during the construction period.

NB Although your solicitor will deal with all the legal business, our sales executives are also well trained in the home buying process and are happy to offer advice whenever you need it.

Obtain house insurance

It is imperative that you obtain house insurance on your new McInerney Home. It will be a requirement of your lender that you take out adequate insurance to protect their interest in the property. Just as important, it will protect you and your family's interests. You should ensure you have adequate cover not just on the property but on its contents, including your treasured personal possessions.

Block Insurance Policy applicable to Multi Units/Management Co’s

Multiple Units will have a Block Policy and in this regard details of your lender will be required so as to facilitate drawdown.

Legal Completion

The final legal stage of the house buying process is known as completion.This takes place as soon as possible after the property is finished, subject to contracts having been exchanged and your mortgage approved. Please note time constraint as specified in your contract. When your new house is finished you will be invited to inspect the property to ensure that you are entirely satisfied with it. It is a good idea at this stage to ask your own architect or appropriately qualified engineer to accompany you on this inspection. Between you, you can identify any small things which you may feel need attention and prepare what is known as a snag list. Once this has been attended to you will instruct your solicitor to complete the purchase. He or she will arrange for your mortgage to be transferred from the lender, along with any remaining balance you may still be holding, to McInerney Homes. In return, your solicitor will receive any outstanding documents, which will subsequently be held by the lender on your behalf.

Floor Area Certificates

These issue from the Department for the Environment and inspections can take some time. Without the floor area certificate being in place the purchaser's solicitor cannot validly stamp the purchase deed therefore the Law Society have issued guidelines confirming that no sale can complete without the floor area certificate being in place. If the property does not qualify for a floor area certificate then a certificate from a suitably qualified engineer/architect is required to confirm that the property is in excess of the floor area limits.