It’s a daunting process for many first home purchasers who are starting out – looking for their initial dream homes. The most challenging part will be how to start the process.
In this guide, we break down the home purchasing process into 3 easy to understand steps.
Step One – Preparation is the key, working out your Budget / Funding options
1) Understand the mortgage application process and discover your buying power.
2) Knowing your mortgage options, based on your current financial situation.
3) Work through your deposit options, if applicable, check your KiwiSaver withdrawal and first home grant eligibility and request your kiwisaver eligibility letter from your kiwisaver provider.
4) Get your home loan pre-approved & understand the buying cost (one off) & owning ongoing costs:
– One off costs such as solicitor fees, property LIM reports, Property Files, building inspections, moving costs, utility setup and reconnecting services.
– Ongoing costs such as home loan repayments, council rates, home and contents insurances, utilities and maintenance, body corporate fees if buying a unit title etc.
Step Two – Finding your dream home once you sorted your funding option
1) Put together your support team. Finding a suitable property can be challenging – it is very important that you utilise as much as support as possible, such as your lawyer, real estate agent, a qualified builder, family, and close friends.
2) Understand different property types & find out the right type of property within your budget.
3) Research and do due diligence process on those potential properties before making an offer.
4) Make an offer after your solicitor review and the sales and purchase agreement and share the offer with your financial advisor / lender.
5) If your offer is accepted, working with financial advisor/lend to provide an unconditional funding offer.
Step Three – Completing pre-settlement tasks and being ready for house settlement
1) Finalize the right home loan structure & understand the loan repayments moving forward.
2) Your Lender will prepare lending documents to go to your solicitor.
3) Arranging appropriate house & contents insurance for the property.
4) Signing lending documents with your solicitor prior to settlement.
5) Settlement day – you will get your house key!
Congratulations, now welcome to your new home!
We are here to help you, get in touch with us.
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