First-Time Home Buying Process What You Need to Know

1. First-Time Home Buying Process: What You Need to Know It's a huge accomplishment when you decide to acquire your very first house. It is also a very daunting task and this is more so if you do not know how to go about the whole process. In New Zealand, buying real estate has a number of important stages, starting from the search for finance to the step of placing an offer. The home-buying process and provide tips on what you need to know as a first-time buyer. Step 1: Assess Your Financial Situation Budgeting and Savings Before you go house hunting, it is very important to conduct a financial evaluation of yourself. Start with your savings and explain how much you are willing to go with as a deposit.

2. In most cases, lenders in New Zealand do not accept less than 20% of the purchase price as a deposit from the buyers. However, certain lenders may accept giving a deposit that is less than 20%, especially in cases where the buyer qualifies for certain government schemes. ● Create a budget: It is prudent to look at the money that comes in, versus the money that goes out, this will assist in establishing the figure that is appropriate for the mortgage payment. ● Build your savings: In case you do not have enough money for a deposit, the next best thing is to save towards a deposit. This can be achieved by cutting down on lifestyle expenses and also pre-scheduling savings payments to your goal. Check Your Credit Score The credit score is very fundamental in the first-time home-buying process. A credit score is used by lenders to assess an applicant’s ability to repay a mortgage and what rates will be given to that applicant. If this is the case for you, do something to raise your credit score by reducing outstanding balances on accounts and not applying for any new accounts. Step 2: Get Pre-Approved for a Mortgage Why Pre-Approval Matters To get a mortgage for a house purchase in the future, it is recommended to get pre-approval. Pre-approval is a wait-and-see approach that gives you a picture of how much you can borrow, to assist you in restricting your search to houses that you can afford. This also tells the sellers that you are not a jokester and makes you have an upper hand in the market. Working with a Mortgage Adviser A mortgage adviser gives you assistance and advice in filling out your mortgage pre-qualification application and in searching for a suitable home loan. Our experienced advisers at NZ Mortgages, for instance, assist first-time buyers to obtain the best rates and terms possible. We evaluate your financial position and suggest loan proposals that best fit your requirements.

3. Step 3: Start House Hunting Finding the Right Property So you’ve received your pre-approval, wonderful! It’s now time to find that perfect place you can call home. This includes aspects like the area, the size of the home, transport facilities especially schools and the metro. Do, however, keep in mind your budget and limit your wants for features that will not and cannot be compromised on. Work with a Real Estate Agent An efficient real estate agent can ease the house-hunting process by providing information about the properties in the local area as well as how they fit into the buyer’s scope. They can also help in bargaining the price and conditions of the sale. Step 4: Make an Offer Understanding the Offer Process Whenever you come across a property that you like, the next thing to do is always to make an offer. A real estate agent will assist you in submitting a respectful offer to the seller which contains the amount you are prepared to purchase the property and any restrictions such as building inspection or approval for financing. Conditional vs. Unconditional Offers In New Zealand, offers can be either conditional or unconditional. A conditional offer is one that, if accepted, means that the house can only be sold once certain conditions have been satisfied, such as obtaining a mortgage or passing an inspection. An unconditional offer means that the sale is made without any conditions and such will most likely be accepted by the seller. Step 5: Finalize Your Mortgage and Settle Completing the Sale After your offer is accepted, the following steps are to complete your mortgage and all other final conditions. Your mortgage adviser will liaise with your lender to make sure that the funds for the loan are available by the time of settlement. The property will change hands on the day of settlement, and you will be free to move into your house.

4. Conclusion Purchasing your first home is an intricate task owing to the numerous factors at play, however, some organizations complemented with the right assistance make it easier. Every step matters whether it is budgeting, sourcing for a mortgage, making an offer, or closing the sale. We at NZ Mortgages understand the pressure needed for a first home milestone and do everything possible to walk our clients through this wonderful experience. Our highly experienced team of mortgage advisers will help you every step of the way and make sure you get the best financing for your new home – Contact us today to start your homeownership journey.