So you’re buying your first home…

Buying your first house is an exciting time. But are you wondering how to begin?

Before you’ve even started looking at the “for-sale” listings, you’re dreaming of how every detail will come together when you finally have a place of your very own.

While it’s natural to be emotional about your first-home purchase, there are a few things that you need to get in order to make the process run as smoothly as possible.

Here are some points to think about before you embark on your journey to home ownership.

Get an idea early of what you can afford to spend

First things first, you’ll need to know how much you can afford to spend.

If you’re not sure where to start, jump on the phone to us and ask us to give you a steer as to what sort of price range you could conceivably hope to buy in.

To understand the ballpark you’re playing in, you’ll need to be able to run a calculation of what deposit you have available to you in your savings account, KiwiSaver and in the form of any assistance you might get from family.

Then, we’ll need to crunch the numbers on your income and determine how much is coming into your bank account each month, and how much debt you have on the other side of the ledger.

Research

You can’t go to too many open homes when you’re trying to buy a house. Check out things in your price bracket, slightly above and slightly below so you get a good idea of what a property is worth.

When you go through a place that subsequently sells to someone else, find out from the agent what it went for. All this market research can put you in a better position to make a reasonable offer when the time comes.

Do your due diligence

When you spot something you like, get enough information about it to make a good decision.

Things like a building report will give you added confidence about the purchase – and a LIM is a good idea to determine whether the property is as it should be from a council perspective. Allow time in your offer for finance to be approved and ensure you don’t sign an unconditional agreement until you know it is in place. When you’re pondering a big purchase, there’s really no such thing as ‘too much information’.

Keep in touch with us through the process

As mortgage advisers, we can help make the whole transaction move more smoothly and recommend an appropriate mortgage structure. So keep us up-to-date with what’s happening.

Sometimes it’s possible to have a lender help you with a deposit if you don’t yet have access to the funds (but will on settlement day). Plus, we can help you through the process of accessing your KiwiSaver funds, as well.

Move in and enjoy your new home

On settlement day, you’ll be able to move in as soon as the funds are transferred, your lawyers have dotted the Is and crossed the Ts and you’ve had the keys handed over. Once you’re in, remember that your first home doesn’t have to be your ‘forever home’: any ways you can add value to the property will stand you in good stead in the future. Focus on paying off your loan and maximising the value of your house, and don’t pay too much attention to what the market is doing at all times – that’s largely irrelevant until the time comes to move to your next home!

Like to discuss your mortgage needs?

Whether you’re about to buy your first home, pondering a move to your second or thinking about an investment purchase, we can help. Give us a call today.

 Get in touch with one of our lovely Mortgage Ladies today and lets explore your options together!

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 development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.