YOU’VE BOUGHT THE PROPERTY SO NOW WHAT? 5 Things To Know Before You Take Ownership??
Congratulations on your new property! But the journey isn't over yet, before you can settle and move into your new abode, there are a few loose ends that will need to be tidied up.
In this week's update, I will walk you through the essential steps and considerations to ensure a smooth and successful property purchase.?
1. Paying the Deposit ??
Once your offer is unconditional or if you're the successful bidder at an auction, it's time to pay the deposit. Ensure 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 some time for those funds to come through.?
2. Finalising the Details of Your Loan ?
Before proceeding with the purchase, there are a few final details regarding your loan that need to be ironed out with your Mortgage Adviser. To ensure a smooth process, the lender may request a few more documents, including a copy of the Sale and Purchase agreement, a registered valuation of the property (if needed) and any other necessary documentation to finalise your loan.
3. Confirming Your Loan Structure ??
At this stage, it's essential to discuss and determine how you want to structure your home loan. Consider factors such as fixed or floating interest rates, offsetting, repayments and other financial conditions. If you're concerned about potential interest rate increases, you might also explore the option of splitting your home loan across different fixed terms to mitigate future pressure. 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 lawyer for review. Make sure to thoroughly discuss the paperwork with your lawyer before signing so you fully understand the terms and conditions.
Pro Tip: Always consult with your lawyer throughout the process to ensure you have a clear understanding of the legal aspects involved in finalising your property purchase.
4. Getting House Insurance ??
One important step in the property purchase process is organising house insurance to protect your new home. In some cases, having house insurance is a condition of your mortgage, and it should cover you from the day you take possession of the property.
5. Final Inspection ??
Before you settle and officially take ownership of the property, you have the opportunity for a final inspection. This inspection allows you to ensure that everything is in order before you move in. Here's a handy checklist to guide you:
?? Check if all the items listed in the Sale and Purchase agreement, such as curtains and kitchen appliances, are present and in the same condition as when you viewed the property.
?? Assess the general condition of the property, ensuring that there is no new damage or significant changes since your initial viewing.
?? Verify that any repairs the vendor was responsible for have been completed.
?? If the property was previously rented, confirm that the tenants left it in good condition.
?? Taking photos during the inspection and keeping a copy of the Sale and Purchase agreement to hand, can help you cross-reference what was agreed upon.
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Pro Tip: Schedule the final inspection at least a week before settlement to allow time for any unforeseen issues to be addressed.
Taking Possession of Your New Property AKA Settlement!??
Once you settle on your new property, you become the legitimate owner. On the day of settlement, your bank and lawyer will handle the majority of the work, with the bank making the loan available and sending the funds to the lawyer's trust account. After everything is all ready to go, your lawyer will transfer the remaining payment to the vendor's lawyer. When that money has arrived, your lawyer will record the property title under your name.?
You are now the official owner and can pick up the keys!??
Remember, the process of finalising your property purchase requires attention to detail and thoroughness. By following the steps outlined above and working closely with your Mortgage Adviser you can navigate the complexities of the journey with confidence and make informed decisions every step of the way.
Cheers,
Kyle ??
??021 638 464?
The opinions expressed in this article should not be taken as financial advice, or a recommendation of any financial product. Kyle Reardon or Loan Market shall not be liable or responsible for any information, omissions, or errors present. I recommend seeking professional legal and/or mortgage advice for your own personal situation. My Disclosure Statement is available here and on my website .