You want a new house, but you want to be extra sure you’ll have enough money for it, right? And what about after settlement, will you be able to afford the mortgage, rates, insurance and general maintenance?
Talking to your bank or mortgage broker is one of the first most crucial steps to take in the house buying process. Your banking adviser or mortgage broker will work through a number of things with you, including working out how much you can borrow, based on the size of your deposit and the repayments you can make. A good banking adviser or mortgage broker will also help you work though a budget for after settlement, including mortgage repayments, rates and insurance. Some will also help you with the Kiwisaver/Homestart Grant process. If not, we can help with this.
Its also important to make sure you include a finance condition in the Agreement for Sale and Purchase when you make your offer, even if you have pre-approved finance from a bank. The bank will want to approve the property you are purchasing and may also want to see the Builders Report or LIM report.
For those who don’t have a 20% deposit, you can check to see whether you qualify for a Welcome Home Loan. Welcome Home Loans are available at selected banks and other lenders. The loan is underwritten by Housing New Zealand and allows the lender to provide loans that do not met usual lending criteria. You must meet the Welcome Home Loan criteria, as well as any criteria set by the lender. You can find out more at www.welcomehomeloan.co.nz.
You may be closer to buying your first home then you think! Don’t be afraid to ask questions, and if you’re a first home buyer wondering how this whole thing works, give us a call 218 EMMA! Remember – Emma is available to meet with you in Alexandra by appointment.