Buying your first home is an exciting endeavour. The home you buy will become your largest asset. And perhaps more importantly, it will become the foundation for years of memories and sharing love with family and friends. But for many first time buyers, it can be a daunting and overwhelming experience.
We have put together a list of our top 8 tips to help you have a clearer picture of the process ahead.
1. Determine a Budget
One of the first things you should do is set your budget. How much money can you spend on the property? We are talking about both the deposit and the mortgage expenses. Assess your income and expenses and how much of a deposit you have saved so far. Most deposits need to be 205 of the property’s price. However, some first time buyers are eligible for just a 5% deposit. Once you determine the budget, you can make realistic and measurable steps to save how much you’ll need.
2. Find a Qualified Mortgage Broker
A mortgage broker is often the guiding light in any home buying journey. They provide you with personalised and tailored advice to help you and your unique needs and goals. They are also equipped with their vast array of industry knowledge and connections, and can help you find the best possible home loan and lender. Here at Money Compare, we can help you find a reputable and experienced mortgage broker. Offering expert advice and streamlining the loan application process right through to settlement day, a mortgage broker can make or break your first home buying experience. Simply click the link below and a fully qualified mortgage broker will be in touch.
3. Get a Pre-Approval
You’ll need to apply for and secure pre-approved finance. Pre-approval gives you a ballpark figure of the amount of money you can borrow from a lender. Your bank or lender will agree to lend you a determined amount of money. It’s important to have this figure so that you can view homes within your budget, and avoid falling in love with a property that you can’t afford. Your pre-approval will be determined by a few things:
- The value of the home you would like to purchase
- How much of your deposit you have saved
- Your income
- How much your repayments can be after you’re other bills
4. Compare Home Loans
Money Compare is all about helping Kiwis make fully informed decisions. Our user-friendly comparison platform makes it quick and easy to compare the home loans available on the market, so that you can have an understanding of the market and the interest rates.
5. Call in Other Professionals
Besides your mortgage broker/ advisor, you’ll want other professionals in your “team.” Be sure to consult a lawyer, a qualified property inspector or an engineer. You’ll also need to consult an insurance provider. Be sure to jump on Money Compare to compare insurance plans and get the best deal possible for your house insurance.
6. Start Searching with a Plan!
The exciting and fun part is here. House viewing. Before you race to the first open home, be sure to determine your non-negotiables, preferences, and location so you can narrow down your search, and ensure you view homes that match your goals. What kind of home does your family need? How many rooms? Does the home need to be near schools, shops, public transport?
7. Check the Property’s Condition
When you have found the place you love, the next step is to get the property thoroughly inspected. You don’t want to sign papers and then later encounter an issue you didn’t know about. Invest in a property inspection report that covers all bases such as moisture, leaky home checks, structure, electrical checks, and plumbing checks. The report should give you an estimate of how much it’ll cost to make any repairs or maintenance. Be sure to also get a Land Information Memorandum (LIM).
Buying a House: Do I Need a Property Inspection?
8. Have Your Paperwork Ready
You want to have your paperwork ready to go when they are needed. For example, make sure you apply for your KiwiSaver withdrawal with enough time before settlement day. They can take at least 10 days to process and release and you don’t want it to be too late for settlement day! Be sure to know who needs to organise what between your lender, your lawyer, your KiwiSaver provider, and your mortgage broker. Have a plan, so you can be ready and avoid being caught off guard.
How to Buy Your First Home in NZ
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