Congratulations! Getting pre-approved for a home loan is no easy feat. So, what are the next steps you need to take in purchasing your new home? Well, now is the exciting time; you can start looking at properties.
Before making an offer
Before you make an offer on a property, it is important that you first engage a Solicitor or Conveyancer. It is a good idea to get this started before you make an offer so that you know and understand the process. Ask around for recommendations from family and friends, or get in touch with us and we can point you in the right direction.
If you are using Kiwisaver, get this application under way ASAP. By starting the application before making the offer, it will take less time to get it finalised once you have found the property that you are wanting to purchase.
If you are applying for the First Home Grant, you should also get this underway before you make an offer. Again, this helps to speed things up once you have made an offer on a property.
Making the offer
When making an offer, there are a few clauses to keep in mind:
- Finance clause- It is important to put the Finance Clause in within 10 working days, or 15 working days if you need to use your Kiwisaver. This is due to the bank needing to approve the property as security, and we need to cover off the below before going unconditional.
- Builder report- It is a good idea to get the property checked over by a builder, so you know what you are buying. This isn’t a bank requirement, but it is for your peace of mind.
- Meth test- This is also not a bank requirement, but it is a good idea to get the property checked over to ensure that it is free of contamination.
- Lim report- The Lim Report (Land Information Memorandum) tells you all the information the council has on that property title and is sometimes supplied by the vendor. It’s a good idea to have this reviewed by your Solicitor.
Your offer has been accepted
That’s great news! Now we can go about finalising the lending and getting to formal approval.
The first step after your offer has been accepted is to provide us with a signed and dated copy of the Sale and Purchase Agreement. We will then send it off to the lender.
We will let you know if you need a valuation. If you do require a valuation, we can help get this underway once you have a Conditional Off on a house. We will order it for you, and you will receive an email with instructions on how to pay for it. We will be there to walk you through the steps.
The next step is to get insurance for your new property. We can get Tower Insurance to send you a quote.
If you have any other conditions on your new property, we will need you to send through any other relevant information as soon as you can. That way there won’t be any hold ups.
Here at Summit Mortgages we are here to help. We will walk you through the process and you can always get in touch with us with any questions you may have.
Now that you’ve got all that sorted, it is on to settlement!