I’ve found my dream house...what's next?

Have you recently acquired a pre-approval for a home loan?

It's not just houses that come in all different shapes and sizes - the home buying process does as well.

This month we’re looking at the process that follows getting a pre-approval.

The Process Following Pre-Approval

So, you've just heard from your mortgage advisor that your loan with your lender has been approved. You're about to put an offer on a house but you're not quite sure how to put your best foot forward.

Here are a couple of tips we give our clients:

• Always ask your mortgage advisor for any clauses you may need to add to your offer such as finance, solicitors’ approval, builders report, check council file etc, and what the best timeframe would be to get your approval unconditional from the lender.
• The Sale & Purchase agreement may suggest you offer with a 10% deposit to be paid upon offer acceptance. This can be changed to any figure you’re comfortable with.
• We always recommend putting an offer as an odd number as an advantage as it is likely any other offers will be round numbers like $500,000.
• When stating your proposed settlement date please allow enough timeframe to meet deadlines such as withdrawal of Kiwisaver or rental agreement notice period etc.

My offer got accepted! What do I need to prepare for settlement?...

Once your offer is accepted, you’ll need to ensure you meet all the lenders requirements for your lending to go unconditional. These will be outlined on your pre-approval letter and may include:

• Provide copy of Sale and Purchase agreement to be acceptable to the bank in all respects.
• Registered Valuation report.
• Confirmation of boarder income.
• Closure of any short-term debt such as credit cards, personal loans or buy-now-pay-later accounts.

There may also be conditions that are subject to the house you’re looking to lend on as well. For example, the lender may request a building report to be completed if there is something in the house that they are unsure of and have marked as a risk. You will also need to get confirmation of full building insurance with no exclusions before going unconditional on a property. House insurance is a mandatory requirement of getting a home loan, no exceptions.

If you'd like to contact an advisor about your lending options, feel free to get in touch.

 Looking forward to hearing from you,

 Fiona & Amy