Estate agents in Ireland will want to see that you can pay before they take your bid seriously. That means approval in principle from a lender, or proof of funds if you're buying with cash.
Approval in principle (AIP)
AIP is a letter from your bank or broker saying how much they're willing to lend you, subject to a valuation of the house and final checks. It usually lasts six months. Get it before you start bidding: it takes a few weeks, and agents ask for it.
How much you can borrow
The Central Bank's rules usually cap a mortgage at:
- Four times your gross income for first-time buyers, and 3.5 times for second-time buyers
- 90% of the price, so you need a deposit of at least 10%
Lenders can make a limited number of exceptions each year. To work out your own figure, with stamp duty and fees taken out of your savings, and see which homes for sale are likely to sell within it, use how much can I borrow.
Proof of funds
If you're buying without a mortgage, or part of the price is savings, agents may ask for a recent bank statement or a letter from your bank. Send it with your bid, and black out anything that isn't needed.
Know the real price
AIP tells you what you can borrow, not what the house will cost. In much of Dublin homes sell above the asking price: check asking vs sold prices by area before you set your limit.