Buying a home: step-by-step
So, you're looking at taking that first step onto the property ladder... exciting! There's nothing more empowering than getting into your own home. But how does it all work? Where do you start? Who do you need to talk to? Good questions, and not ones you should be expected to have the answer to off the top of your head. Let me give you a run-down of how I like to tackle things with my first-time property buyers.
The best starting point is right here - with a mortgage adviser. You'll deal with quite a few different people throughout the process of buying your own home but a mortgage adviser is (usually) the only person you won't have to pay to talk to that's genuinely on your side. I understand how overwhelming the process can be, so I like to keep things as simple as possible. I take things step-by-step, which keeps us all focused on the things that matter most.
1 - Get pre-approval
The best first step is to work on a pre-approval for finance. Knowing how much money you can borrow, and understanding the terms and conditions that need to be met to get the money, will mean you're able to browse the market with confidence and be really particular with your property search.
Getting a pre-approval isn't too painful - first we sit down to get a good understanding of your current financial positon, determine what your deposit is and how much you might be able to borrow.
We’ll also chat about:
the list of documents we'll need to pull it all together - things like bank statements and payslips
your eligibility for things like Kiwisaver First Home Withdrawals, Kainga Ora First Home Loans or special bank offers
the potential for family to help with a gift or by acting as a guarantor.
Once I have all of the documents and information I need, I'll work on putting together an air-tight pre-approval application, and come back to you with an update on which lenders we're going to and why, timelines, and what we can expect them to say. It usually takes around 10 working days to hear back from banks but this can vary, so be sure to allow enough time.
Once we have a pre-approval to talk through, we'll all sit down and go over this, so I can fill you in on the details and prep you for house hunting! You'll now know your budget and boundaries for your home search. This is the fun part! But focus is key with house hunting, so I can connect you with agents and developers that can help with your search. At this point it's also worth you establishing a relationship with a good lawyer that can help with the conveyancing side of things - I can introduce you to a lawyer, if you'd like me to.
2 - Go house hunting
A lot can influence how a lender will treat a property. For example, how it's owned - is it freehold or cross-lease? Or where it's located - how populated is the area? Or when it was built - is there a chance there are issues with problem building materials from that era? So, when you find a property you're interested in the first port of call is to contact me so we can chat about that property in particular, and what questions a lender may ask. I'll also put you in touch with a good property inspector to help you understand if your potential first home is structurally sound.
3 - Do your checks
When you're ready to make an offer, I'll give you some tips to make sure you're safe and have done all the due diligence you need to. We'll also make sure your solicitor checks everything before you sign an agreement.
4 - Prepare for settlement
Once a home is secured, we'll have a discussion around life, living and health insurances, to ensure that your biggest purchase yet isn't put at risk if you fall sick or something bad happens. I can also connect you with home insurer to get your home insurance all locked and loaded.
That's a general outline of how things typically work - but every person and every home is different. In my experience, first-home buyers that get the best results focus on what they can control, and surround themselves with good advice. Everything else will fall into place.
This is not tailored/targeted financial advice, and should not be acted upon without seeking independent advice specific to your needs. It is intended to act as an informative guide only.
