Practical steps for purchasing your first home
Purchasing your first home is exciting and daunting all at once! Below are some things to think of before stepping on the property ladder:
Contact your lawyer and let them know you are looking. It may be that you need your lawyer to review an Agreement for Sale and Purchase at short notice so it’s much better if your lawyer has warning. If you are purchasing at Auction, you will need your lawyer to review the contract prior.
For any purchase, you can ask the agent for a proposed contract, or you ask your lawyer to draft an Agreement for Sale and Purchase as a way to present your offer on the terms you are completely comfortable with.
Make an appointment with your bank to find out how much they will pre-approve you for. This way you can look at houses in your price bracket. Pre-approval doesn’t always mean you are guaranteed lending, so be wary of that. We recommend making any contract subject to finance. Some other conditions may be of use as well, like making the agreement subject to solicitors’ approval.
Agent’s work for the seller and are not lawyers. Be wary of Agreements drafted by an agent and make sure you are super clear on what the terms mean for you by consulting your lawyer.
Make sure that if there is a deposit payable, you have those funds readily available. Many people have been tripped up where a contract says they must pay a deposit and they thought that they could simply pay the deposit from bank funds at settlement.
As Christie Nelson said in her blog post from 6 August 2020, organise your KiwiSaver pre-approval and your Kainga Ora home start grant ahead of time. The Kainga Ora home start grant is valid for 6 months, so if you haven’t found a home you love before the, don’t panic, you can reapply.
Take your time at open homes. If you really like the property, make sure you look at every nook and cranny, there’s nothing worse than buying the house and finding countless issues once the keys are in your possession.
If possible, start buying items you might need for your new home before you even start looking. Things like bedding and kitchen items can add up, so purchasing them early or on sale is a big help.
Once you get an unconditional purchase agreement (congratulations!) you will need to organise insurance, power and internet for your new property. Most companies will allow for these services to be organised prior to settlement date.
If you have any questions or would like any assistance, please contact us. We’re here to help
Rheanna Hunt