No doubt about it: buying your first home is exciting. But it can also be incredibly stressful, which is why it’s so important to prepare yourself for the journey ahead, by doing your homework and getting advice from the right people. So that you understand all you need to know about buying your first home, we’re sharing our first home buyer tips.

1. Prepare yourself
When it comes to money, it’s vital you talk to the right people. Before you even start looking for a home, we recommend you meet with a Mortgage Express adviser to discuss things like:

• Your deposit – how much have you saved and how much do you need?
• Affordability – what can you realistically afford to pay for a first home?
• Borrowing capacity – how much could you borrow?
• Other costs – rates, insurance, home maintenance and repairs – how much will you need initially and ongoing?

Getting pre-approved finance is another good option, ensuring you’re clear on how much you can buy for and letting you move faster if you see a property you like. Your MX adviser can help you secure pre-approval and provide advice around first home buyer schemes like KiwiSaver HomeStart and Welcome Home Loans.

2. Be realistic
Decide on the things you need – three bedrooms, off-street parking – versus the things that would be nice-to-have – a garage, two bathrooms. You may need to lower your expectations and even consider exploring areas that wouldn’t necessarily be on your list, and if you’re buying a home with your partner or a family member, you may need to compromise in order to find a home you all agree on.

3. Do your research
Find out as much as you can about a property before making an offer. Get a qualified property inspector or registered valuer to inspect the property and prepare a detailed report and research similar properties online so you know how much they’re selling for.

4. Make an offer
Once you’ve found a property you like, it’s time to make an offer. Depending on how the sales process if being handled, you may need to attend an auction to bid on the property or put in a tender or an offer.

You’ll be required to complete a written sale and purchase agreement, stating the price you want to pay and any conditions that need to be included. We highly recommend you get your lawyer to go over the S&P agreement before you sign as it is a legally binding contract. If the seller accepts your offer, you’ll go through the conditions until the agreement becomes unconditional.

5. Settlement
On settlement day, the home becomes yours. Arrange a time to inspect the property before settlement day to ensure everything is as stated in the sale and purchase agreement. The seller needs to have met all of their obligations before handing over the keys.

Your lawyer will liaise with your lender and the seller’s lawyer to ensure all of the paperwork is in place and that your mortgage repayments are as agreed with your lender. Have your mortgage adviser check your finance and insurance are in place and start planning your moving day!

Simplifying complicated processes
Partnering with a Mortgage Express adviser will help you prepare for buying your first home. Our advisers are experienced at guiding first home buyers through the often complicated processes and can help simplify paperwork so it’s easy to understand.

If you’d like advice around buying your first home, or if you have questions about your first home deposit, how much you could borrow, and how much your repayments would be, talk to one of our team today.

For more tips and advice around managing your money, consolidating your debts, or applying for finance, follow Mortgage Express on Facebook and Twitter, or contact one of our mortgage advisers.

Disclaimer:

While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken by Mortgage Express Limited for any errors or omissions. This publication does not constitute personalised financial advice. It may not be relevant to individual circumstances. Nothing in this publication is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this publication.

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