First Time Buyers Guide to Buying your new home

Once you have your AIP, you will have a better idea of what your budget will be and will allow you to start looking at potential new homes. You should compile a list of criteria and prioritise what is most important to you, for example it may be the location, number of bedrooms or type of New Development.

A booking deposit will be payable to your agent once your offer is accepted and this is a fully refundable deposit until contracts are exchanged. Once contracts are exchanged there is a further deposit which is usually the balance of 10% of the purchase price (ie 10% of the purchase price, less the booking deposit already paid). Once contracts are signed you are in a legally binding contract.

We would suggest starting to look at solicitors at this stage, you will need to appoint a solicitor to manage the conveyancing process. There are no set prices for legal fees in Ireland, most solicitors will charge a flat fee, and some will charge a percentage of the house purchase price. You should shop around and find a solicitor that best suits your needs, usually, a recommendation from a friend, family member, or colleague who has used a solicitor before is a good way to go.

Once you have paid your booking deposit, your Agent will issue a Sales Advice Notice to you, your solicitor, the vendor and the vendors solicitor. This will include details relevant to the sale such as the property address, the agreed price and the booking deposit paid. This will prompt the vendors solicitor to issue contracts to your solicitor and thus commence the conveyancing process.

Your bank will require you to arrange a bank valuation on the property you intend to purchase. The bank will provide you with a panel of approved valuers and the cost of this valuation is payable by you, the buyer. The valuation report is an assessment of the property to determine its value and will need to be carried out by an independent agent. Once your lender is satisfied, they will formally approve your loan in writing on the basis of the price of the house and information furnished to them. Your loan pack will issue to your solicitor and will last 6 months.

Once your solicitor is satisfied that all pre-contract queries have been replied to, they will arrange an appointment for you to attend their office to sign contracts. At this stage, the balance of 10% of the purchase price is due and you will be asked to transfer this amount to your solicitor’s account.

If you are availing of the Help to Buy Incentive, you will need to provide your solicitor with your qualifying amount and the supporting documentation from Revenue and the amount you qualify for will be deducted from the contract deposit at this point in the process. For more information see DNG’s GUIDE TO THE HELP TO BUY SCHEME

Once unconditional contracts are signed and exchanged, you are now in a legally binding contract. At this stage, the entire 10% booking deposit is non-refundable. We recommend that you arrange your life assurance, home insurance and mortgage protection if required, in advance to avoid any delays.

Once the property has been finished by the developer, you will be invited to inspect it. You can arrange a surveyor to carry out this inspection or you can do it yourself. The inspection is referred to as snagging and it is your chance to walk through the property to note any items that may require attention. A ‘snag list’ is compiled and you provide this list to your builder. Once all items are completed, you will be invited back to re-inspect the property.

The developer will issue an official completion notice to your solicitor once the house is ready. The completion notice is issued to notify your solicitor that the sale is due for completion within 14 working days. This will trigger your solicitor to request drawdown from your lender and to arrange the balance of funds from you, in order to complete the purchase.

Once your solicitor is in receipt of your mortgage funds, they will contact the developer’s solicitor to arrange a closing date. Once your solicitor has transferred the closing funds, the developer’s solicitor will confirm that the sale has closed and the site foreman or your agent will be instructed to release the keys to you.