Buying a house can be an exciting time.
But if you’re just beginning the process, you might be wondering where to start.
Here are ten tips to make your home-buying journey a bit smoother.
Get help early on to set your budget
Meeting a mortgage adviser early in the process can be a big help. We can help you work through how much you might be able to borrow and what the repayments might be. If you’re not quite application-ready yet, we can also give you some pointers to help you get there.
Aim for preapproval, if you can
We’ll help you apply for a home loan preapproval, which will give you more certainty about what you can borrow to spend on your new home. This puts you in a solid position to go house-hunting.
Check what you need to do for your KiwiSaver withdrawal, if applicable
If you’re planning to use your KiwiSaver savings for a deposit, it is a good idea to find out early in the process what you need to do and how long that might be expected to take.
Get familiar with the market
When you know the sort of budget you’re working with, you’ll probably want to get a sense for what sort of homes are selling for that amount. One way to do this is to go to lots of open homes and follow up with the salespeople to find out what they were sold for. You can also use the free data that is available via sites like Homes.co.nz. This will give you a good sense of whether places that you’re looking to buy are good value.
Find a lawyer you trust
You’ll need a lawyer or conveyancing specialist to secure the purchase, and having one you trust to help you can make a big difference. They’ll need to be involved as soon as you make an offer, at the latest.
Take your time
You may be in a hurry to get on with it but doing your research can really pay off. If you spot a place you like, do a bit of research about the neighbourhood – what’s being built? What are the neighbours like? What amenities are there? You may also need to do some due diligence on the property itself, such as a building report or valuation.
Decide on what you need in a house
There will be some things that are non-negotiable for you – maybe the number of bedrooms the house needs to have. But other things will just be things you’d like – perhaps a pool or a second lounge. Working out what is a must-have and what is more of a nice-to-have will help guide your search.
Follow an open home checklist
Open homes can be busy, so it helps to be prepared. Take a checklist with you of things to look for – where does the sun come from? What’s the heating like? Are the floors even? What’s the water pressure like?
Prepare for extra costs
Home ownership involves more than just loan repayments. Factor in ongoing expenses like repairs, maintenance, rates, and house insurance in your budget.
Also, be prepared for the upfront costs to acquire a home. These can include builders’ reports, registered valuations, legal fees, and movers—all of which can add up quickly. Planning for these potential expenses ahead of time can save you from unexpected stress.
Be prepared for a wait on settlement day
Sometimes, settlement can happen quite late on the designated day. It might pay to give yourself a bit of lee-way in terms of when you need to move out of your current home and into your new one so that you’re not under unnecessary pressure.
Ready to go?
The team at LifeDirect Mortgages is ready to help you get into your new home. Whether you’re just starting to think about buying a house, or almost at the point of applying for a mortgage, we can offer expert advice and assistance to help you get to your goals as smoothly as possible.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.
