CONGRATULATIONS, YOU’RE PRE-APPROVED! But What Do You Do Next?
Loan Market Agile
We help Kiwis into their first home, climb the investment ladder, grow their business, & purchase commercial property.
You’ve just got your pre-approval to buy a property, and find a?place you love, what do you do next??
In this update, I will walk you through the process and provide you with valuable insights to ensure a smooth and successful home buying experience.
Before You Start Looking At Properties, Engage A Solicitor For The Legal Stuff.
Once you start going to open homes and find a property you like, things are going to move pretty fast. Apart from your Mortgage Adviser, an essential part of your support team is going to be your solicitor.
They will be able to look over the sale & purchase agreement before you make an offer, advise on any conditions you may need to include and check the property title & LIM report. They will also help with your KiwiSaver first home withdrawal and complete the property purchase transaction for you at the end - so get in touch with one early on.?
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Making an Offer: Important Clauses to Consider.
As mentioned above, your solicitor will advise you on any conditions you may need to include when making an offer on a property. These conditions provide protection and allow you to conduct necessary due diligence before proceeding with the purchase. ???Here are some important clauses to consider:
Finance Clause:?If you need to borrow money from the bank to buy the property, then you definitely want to include a 10-15 working days finance clause in your agreement. This clause allows you time to secure a formal approval from the bank and ensures that they are happy with taking on the property as security.?
Builders Report:?While not a mandatory requirement, obtaining a builders report is highly recommended. A professional inspection by a qualified builder will provide you with valuable insights into the condition of the property and any potential issues that may need attention.?
LIM Report:?The Land Information Memorandum (LIM) report is a comprehensive document containing critical information about the property. It’s a good idea to have this report reviewed by your solicitor so you can gain a clear understanding of any potential issues with the property, such as zoning restrictions, building consents, or other relevant details.
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?? If all goes well and the vendor accepts your offer...
... there are a few important things that need to take place in order to finalise things: ?
Provide a signed and dated sale & purchase agreement to your Mortgage Adviser. ?This document is vital for initiating the formal lending process with the bank. Remember, your pre-approval is just that, a “pre-approval”. In order to get a formal approval, the bank needs to accept the property as security.?
Registered Valuation. Depending on the lender's requirements, you may need a registered valuation on the property. Your Mortgage Adviser can guide you through this process and arrange the valuation on your behalf.?
Fulfilling Additional Conditions. If there are any additional conditions specified in the sale & purchase agreement, ensure that you attend to them and provide all relevant information promptly. This will help avoid any potential delays in the process.?
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Going “Unconditional” and Paying Your Deposit.
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Once you have ticked off all the conditions and gone “unconditional”, you are locked into completing the sale and it's time to pay the deposit. You’ll need to make sure that you have the necessary funds readily available to avoid any delays. If you're eligible to access your KiwiSaver for the deposit, you will need to reach out to your KiwiSaver provider early as it can take up to 20 working days for those funds to come through (your solicitor will be able to help you with this).?
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Confirming Your Loan Structure.
At this stage, it's essential to discuss and determine how you want to structure your home loan. Your Mortgage Adviser will be able to help tailor the right structure for you. Once this part is finalised, the mortgage documentation will be sent to your solicitor and you will be asked to meet with them to sign the loan documents. Make sure to thoroughly discuss the paperwork with your solicitor before signing, so you fully understand the terms and conditions.
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?? Getting pre-approved for a home loan is an exciting accomplishment, and now you have a clear roadmap for what to do next.???
Remember, your Mortgage Adviser is your Trusted Adviser throughout this journey, providing expert guidance and support. We are here so you can enjoy the process of finding your new property and embrace the exciting adventure of becoming a homeowner.
Reach out if you need a hand!
Rodney, Dallas, Nigel, and the Agile Team!
?? 0800 1 AGILE (0800 124 453)