5 Tips for First Home Buyers

Dreaming of Home Ownership?

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As keen as you are to get into your first home, it can be a daunting process and it’s hard to know where to start. These tips and suggestions may help you on your journey towards home ownership.

 

Tip 1: Save yourself time and energy and stop shopping around banks.

A mortgage broker can do all this hard work for you, presenting you with the best options to suit your specific financial situation.

And guess what? Not only does a mortgage broker work for you for free, but they can also save you money in the long term.

The first meeting with your broker will include a discussion about how much deposit you already have and how much you will need to borrow.

Should you not have quite the amount saved as required, your mortgage adviser will then set a plan with you – this including a budget savings plan which could include increasing your Kiwisaver contribution or setting up a separate savings account.

Always keep in mind that the bigger your deposit, the less you’ll pay in interest over the long term.

 

Tip 2:  Finance - Home Loan Pre-Approvals.

Buying a home is probably the biggest financial commitment you will ever make, and you need to go in prepared.

Obtaining a Pre-Approved Home Loan means the bank has approved your finance, subject to certain conditions.

You now know how much the bank is prepared to lend you, thus giving you the maximum amount you can spend on your first home.

Remember: you must stick within the budget and price range.

 

Tip 3:  House Hunting

For many, finding that perfect home is the most exciting part of the journey, but there can be some ups and downs along the way.

It is at this stage you may need to deal with a Real Estate Agent to help you find that dream home.   Your agent will need to know what your maximum purchase price is, to ensure you stay within your spend budget.

 

Tip 4: The buying Process

You found a house that meets your needs, your budget, and feels like home. Congratulations!

Now there are a lot of choices to make and not much time, so you’ll have to stay organized.

You now quickly learn about making an offer, getting a home inspection, which mortgage insurance product might be right for you, and finalising your mortgage approval.  This is when you rely on the experts.

  • Real Estate Agent: your agent will guide you through the process of making an offer.
  • Solicitor: your lawyer, who will take care of the legal matters for you.
  • Mortgage Adviser: will liaise on your behalf with your bank to finalise your mortgage approval and then start working towards settlement date.

 

Tip 5:  Keep Resale Value in Mind

As this is your first home, it is likely that you will eventually need to sell it. Though you may be a fan of electric blue houses and odd floor plans, you should also remember that the home needs to be as easily resold as possible. Of course, you can always make necessary alterations. However, after you are finished enjoying that quirky hallway to nowhere, you should also factor in the costs of making the home re-sellable again.

 

Your Mortgage Broker: Angela Clinch

tauranga papamoa mortgage broker

Buying a new home can be intimidating. However, the more you educate yourself and the more resources you utilise, the more fun and less stressful it becomes.

As your Mortgage Adviser I will walk you through every step of your journey and guide to you the experts for the professional advice required to find the perfect home that’s as good a fit for you (and your family) as it is your budget.