So, you want to buy a house
Now retired Rotorua Real Estate Agent Cheryl Campbell states very simply that before seeing an agent or house or making an offer ‘’get things organised. It may sometimes take months or years but get those things arranged’’. So what are those ‘’things’’, and who can help?
ARRANGE YOUR FINANCE with a Mortgage Broker As Hawke’s Bay broker Peter Barry puts it “working for the people who want the money with the people who have the money’’. Brokers are engaged by you to approach a myriad of lenders to get the best deal for you. This can include getting the best interest rate & terms of the Mortgage. Especially if in the future you may wish to start repaying the mortgage off a little quicker. They are paid a commission by the bank once the Mortgage is drawn down. A pre-approved Mortgage, a sound idea.
THE DEPOSIT can come from numerous sources. For a 1st home buyer, this can be in the form of savings, family loans/gift or Kiwisaver. Or as is often the case, a combination of all 3 or more. Always, always & always again, contact a Conveyancing Lawyer who can help with the right legal advice, arrange your KiwiSaver deposit, and ensure the correct ownership structure is in place. And one more time. Always contact a lawyer before making any offers. They are obliged to tell you the possible pitfalls.
Banks will often need a valuation, from an approved REGISTERED VALUER on the house. They will look at the recent sales in the same market. It is not an exact science but it can be the basis of how much you should pay initially. And also if the property is worth investing in improvements.
So it’s all going swimmingly and your agent shows you THE HOUSE that exactly fits the bill,
- You have the deposit,
- finance arranged
- your lawyer has given you advice on the contract.
- The valuation ticks all the right boxes too.
And the house is a still gorgeous 1920’s Bungalow, dream home!
Get a BUILDING INSPECTION completed. When you see the house you may be blind to its possible defects. A suitably qualified Building Inspector, with Indemnity Insurance, is not! Their role is to look for the rotting piles, the leaky roof, the damp weatherboards, the asbestos, the scrim, the rot. Getting Uncle John to have a quick look may only cost you a tray of beers. But he won’t be much use if you find out later the house is a money pit of problems. Did we mention P or methamphetamines?
HOUSE INSURANCE Insure Hawke’s Bay owner Kerry McIntyre is the man. “Supply us the address details & the software we use enables us to know in seconds how the house is constructed and the cost to insure”. But, with some insurers, if a house is built pre 1949 then they need to KNOW (no guessing allowed, by anybody) if the house has been re-piled, reroofed, rewired. If that is unknown it means no replacement house insurance can be offered. In turn, that means the bank could refuse a mortgage, the sale could fall over, you could lose your deposit. So if it does indeed hit the fan, Kerry or your selected Broker is indeed, the man.
So there you have it. Arrange as much in advance as possible
- MORTGAGE BROKER for pre-approved finance
- CONVEYANCING LAWYER to look after your legal issues and KiwiSaver deposit
- REGISTERED VALUER to ensure the property is worth the amount being paid is fair.
- BUILDING INSPECTOR to ensure the house is safe for you & your family to live in.
- HOUSE INSURANCE Compulsory almost if a mortgage is needed.
Get these steps arranged and then enjoy the new home. You earned it.