Ten simple steps to buying a home

A lot of us need help to ease us through the housebuying process without developing a stress-related illness - and no one more than first-time buyers, simply because they have no idea how the process of buying a house works.

It is this issue that mortgage broker the Irish Mortgage Corporation (IMC) has recently been trying to address through a series of free first-time buyer seminars that go through all the steps of buying a home in understandable language. As part of this, the broker has produced a special guide to home-ownership that outlines the 10 steps to getting those magic keys.

First (and for obvious reasons), IMC advises a visit to an independent mortgage broker such as itself. In reality, opinions differ on the value of visiting brokers, with some arguing that a mortgage client could get just as good a deal on their loan by going directly to a range of lenders. Whatever your view however, an appointment with a broker will rarely be a waste of time, even just to gather information.

The next step outlined by IMC is the "approval in principle stage" where a lender says they will lend a certain amount of money when a property is found. This leads to step three, where the property search commences and, hopefully, ends in success.

Step four brings the start of the hard bit with the payment of a booking deposit. IMC says booking deposits can be as low as €3,000 but notes that this will always depend on the seller or developer. The broker points out that these deposits are refundable up to the point where contracts are signed.

Next, at step five, buyers are advised to appoint a solicitor to handle the legal side of the purchase. Shopping around may help borrowers to find special discounts that may be available for first-time buyers in some firms, IMC suggests. Step six brings the formal loan offer, or the detailed and definite version of the approval in principle at step two. This offer should, according to the guide, include all the particulars of the mortgage such as rates and repayment terms and conditions.

IMC says that within about three weeks of paying the booking deposit at step four (or a bit longer in the case of many second-hand properties) contracts should be signed. This step, at number seven, is extremely significant since it involves handing over the balance of 10 per cent of the purchase price. It also binds both buyer and seller to the deal.

At step eight, we come to insurance, which must be taken on the buyer's life (for the benefit of the mortgage company) and on the property itself. This step can often take longer than many buyers expect so should be allocated some importance.

Step nine involves documentation, and making sure that it is all in place for the lender. The broker makes particular mention of employment records and other financial statements, all of which will help to speed the release of money.

Finally, step 10 - the closing of the deal. This means that on a particular day, the lender will free up the money the buyer wants to borrow and allow them to pass it on to the seller. In turn, the seller will pass on the keys to the property through their solicitor, who will deal with the buyer's solicitor. Once this step has passed, ownership has officially been transferred and the new owner can look forward to beginning mortgage repayments - and celebrating.