Wow I used to think, buying a home would be easy, fun and exciting… But if I am absolutely honest with you all its not easy, its far from fun and after looking at quite a few houses it becomes not so exciting.
In saying that once you actually do find and buy your first home (or second or third) it suddenly becomes much more easy, fun and exciting!!
So I thought a few little tips will help with the process and try to limit the stress levels.
There are four parts you should consider when you are thinking about getting into the property market:
Part 1: Your Financial Situation – how much $$ do you have?
Part 2: House Hunting – what are you looking for?
Part 3: Making an Offer – HOW?
Part 4: Moving In & On-going Cost – things to keep in mind.
Now I could probably write 10 tips for each part, but I know that most of you will get a bit bored before the end of the email, so I have summarised and tried to keep it simple.
Part One: Your Financial Situation
- OK first things first, you can’t do much if you don’t have the $$ bills. Work out how much DEPOSIT you have, what your INCOME is and how much can you afford to pay on a monthly basis. Keep in mind there are GRANTS/SUBSIDIES out there that you may be entitled too and you can withdraw from your KIWISAVER to help increase your deposit too.
- Next step is to see if someone is going to lend you the money,this will usually be the banks. By using a mortgage broker/adviser we shop around the banks for you to get you the best deals available.
- Once you know your financial situation and how much you can borrow its time to check out whats on the market…
Part Two: House Hunting
- Finding your dream home will not be easy, be realistic, write down a few things that are essential for your home. E.G. sunny, back yard, big apple tree, giant statue of a gorilla etc etc.
- Now check out whats out there, grab the property press, jump online & check out our website, Open2view, Trademe and do some searching.
- Go and look at a bunch of houses in all price ranges to see what $700,000 gets you, compared with $300,000. Get a good feel for the market, so when it comes time to put an offer in you have some idea of what to offer.
- Found one! Great, now you might want to get a second opinion, get a builder friend to look through, friends, family etc. Also you may need to obtain a LIM report, builders report, a valuation in order to meet the loan criteria – so check with your mortgage broker/adviser or bank to see what is required.
- OK all looking good, time to make an offer….
Part Three: Making an Offer
- Making an offer, Auction, Multi offer, Tender. There are a number of ways to sell a property, which means a number of different ways to buy a property. This can get very confusing and complicated. Not to mention stressful and nerve racking.
- Check with your lawyer at this point in the game, they will guide you in the right direction and answer any questions you may have. They will also be able to check the property, documents, reports etc.
- I wont divulge much more on this part as mentioned there are a number of different situations which can occur which have a number of different procedures to follow.
Part Four: Moving In & On-going Cost
- Moving in – WOOHOO
- Ensure all the paper work is in order, deposits are paid, documents signed.
- Don’t forget to set up house insurance, pay the rates, power/gas, mortgage repayments, maintennce cost etc etc There are a lot of ON-GOING COST so think about getting setting a budget for yourself.
- And most importantly make sure you have some sugar in the house for when the friendly neighbor from next door pops in to say hi!
So with all that in mind, lets just says it can be a bit of a complicated process and that is why the team here at Ergo Mortgages can help you along the way.