There are few milestones in life that compare to buying a house. It can be a lengthy process with many steps, albeit exciting. For some people, especially first home buyers, it can be overwhelming. Mortgage Masters help with finding a home loan Auckland property buyers are most suited to and we have extensive experience offering advice on the property purchasing process. Below, we go through the major steps of buying a home in New Zealand so you can start mapping out your journey.
Work Out Your Budget
Start by figuring out your budget. You’ll need to get a realistic picture of your finances, i.e., income versus spending. Weigh this up against your deposit. If you already own a home, determine how much equity you have in your existing property.
Get Pre-Approval for a Home Loan
It’s essential to find out how much money you can borrow before searching for a home. By consulting a mortgage broker Auckland buyers can get pre-approved for a home loan. This is when a bank or other lender agrees, in principle, to lend you a certain sum of money.
Home loan requirements NZ home buyers are subject to vary depending on several factors. This includes how much of a deposit you have, your income, your ability to repay your home loan after you’ve paid your outgoings and the type of property you want to purchase. Pre-approval helps you know your budget and puts you in a better negotiating position with sellers.
Look for a Property
Start finding a property you like, keeping in mind things like distance to amenities, age, price of similar properties and market reports. Inspect the property physically before making an offer. You should also consider viewing or commissioning a Land Information Memorandum (LIM) and builders and engineers reports where possible.
Make an Offer
All offers must be made in writing using the correct documentation with help from a legal professional. You can either make an unconditional offer to buy according to the terms in the seller’s contract or make a conditional offer. This is when your purchase offer has conditions attached, such as arranging a building report.
There are a wide range of documents you need to carefully read, including the Certificate of Title and Sale and Purchase Agreement. These provide important information about the property, including:
- Property details, i.e., the address
- Names of the vendor and buyer
- Details of relevant agents and lawyers
- Settlement date
- Cooling off period
- Property price, deposit paid and outstanding balance
- Information about zoning
- Information of building permits
- Existing lease agreements
- Government fees
- Outgoing costs such as rates
- Information on any easements, caveats and heritage overlays
Settlement is the date on which you pay the balance for the property. Once this takes place, you get legal possession of the property. This usually happens 4 to 6 weeks after your offer was accepted, depending on any pre-settlement inspections that need to take place.
The Mortgage Broker Auckland Trusts
At Mortgage Masters, we can help you find the best home loan Auckland property buyers can get, ensuring we look at your unique circumstances. To find out about home loan requirements NZ clients should get in touch for a free consultation.