What is the First Home Buying Process?

Buying a house is a complex business with lots of twists and turns. In this blog we have tried to simplify the process and how it fits in with our process to give you an idea of how it all rolls….

1. Mortgage application and initial advice

We get to know your situation, application forms are completed and supporting info provided so we can work on a solution. Estimated borrowing power is discussed.

Apply for the Kainga Ora First Home Grant approval if applicable.

2. Pre-approval

We collate, analyse then confirm the best course of action and work on getting a pre-approved home loan(s). Once approved, we confirm/tick off any loan conditions. Rates do not get negotiated at this point. Occasionally, you may need to have a live offer accepted before our application can be assessed by the bank.

3. House hunting

Once approved, the house hunting begins! Remember we provide free online property reports on houses you are keen on and provide ongoing coaching and mentoring through the buying process.

4. Place an offer

Place a conditional offer on a house (via sale and purchase agreement) or in some cases an unconditional offer and we help through this complex process! You will also get guidance from the real estate agent and lawyer.

5. Offer accepted

We get the final legally binding copy of the sale and purchase agreement ticked off by the Bank(s) and we work on any remaining conditions required to get to an unconditional stage.

6. Confirmation of Finance

Bank confirms finance is unconditional by emailing us. You confirm finance with your lawyer and complete any KiwiSaver/Grant withdrawal paperwork with your lawyer. You also work on confirming any other conditions such as builders report, title search if not already done so. Pay the agent any pre-agreed contract deposit/down payment (usually up to 10%).

7. Interest rates negotiation

At this point we start negotiating interest rates and possible cash incentives with the bank(s) and explain it all to you.

8. Loan structure

We then help you with tailoring loan structures, paying it off quickly and signing the initial bank acceptance paperwork and locking in rates.

9. Loan documents sent to lawyer

Bank sends loan documents to your lawyer before settlement and the lawyer will get you in to sign and check them. The branch may also be in touch to open any accounts/onboard you as a customer. Send copy of your new insurance policy with the bank
noted on the policy to your lawyer. If applicable, fill in KiwiSaver and Grant withdrawal forms and provide to your lawyer well before settlement.

10. Insurance review (life, income, health etc)

Have your personal insurance reviewed by our partner insurance adviser.

11. Remaining deposit funds and pre-settlement inspection

Before settlement make sure you send any remaining deposit funds to the lawyer to complete the purchase.
The bank will send the mortgage money to the lawyer on settlement day. Remember to do a pre-settlement inspection of the property before settlement.

12. Settlement

Settlement day! Keys are handed over and usually any Bank cash back incentives will get paid to your account overnight.