The current economic collapse has made borrowing difficult, but the deflation of housing prices is a positive boon for Ireland’s first time homebuyers. Though the Irish market isn’t as flooded with unwanted housing as is America or the United Kingdom, Ireland is still home to a large number of properties that have languished on the market and had their prices significantly cut. However, the economic retraction is not a complete boon to those who wish to purchase their first home. The Irish economy’s retraction has made borrowing difficult, especially as most of the Euros in the EU are tied up in government debt and grant programs. This does not mean, however, that it is impossible to obtain a first time buyer mortgage. It simply means that it is more difficult, and that Irish banks will be more hesitant to lend out money.
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 secure careers, such as law, medicine, banking and accountancy are sure to continue being employed even in the current economic slump, as well as having a large enough income to where they can pay for more of a modest 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.
However, not everyone looking for a first time buyer mortgage will meet such stringent 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 people may be a bit of a credit risk, banks are skittish 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 circumstances to improve their chances is to pick a small, less expensive house and try to get a large down payment, 30% of the closing price 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, and so a big down payment is the best way to help encourage a home loan.
The Irish government has also stepped in to try and help out first time homebuyers thought a series of grants, guaranteed loan programs, and other means of assistance. As this sort of assistance tends to vary from town to town, it is a good idea to check in with a local magistrate before purchasing a home. Many charity organizations, 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.