Whether you're a first home buyer, looking for your next home or downsizing, buying a house is often a stressful process. There are a number of problems that you could encounter before you pick up the keys and take possession. Here are seven ways to help simplify the process of buying a house.
- Get your paperwork in order
Start getting your paperwork in order before you even start looking at properties. If you're applying for a home loan, you'll need a valid ID such as a birth certificate, passport or driver's licence along with valid insurance documentation. You will also need to provide three to six months of bank statements depending on your employment status along with your most recent payslips. If you're using an existing property as security you'll generally need a rates notice or a notice of valuation. - Find a real estate agent you can trust
Before you start the mortgage or loan application process, finding out what's going on in the market is vital. Talk to at least three local real estate agents and listen to what they have to say about the current value of the house you're looking at buying or selling. It's best to choose the agent with the best track record in your area sales wise along with online recommendations.
Your local Century 21 real estate agent would be happy to assist. Click the link here to find your closest agent. - Start researching lenders
There are several financial institutions to consider when you need a loan to buy a house in New Zealand. You can choose from a bank, building society or non-bank lender and there are a number of loan types you can choose from depending on your individual situation. Kainga Ora, an organisation that provides housing for those in need even offers first home buyer grants to assist you as long as you've been depositing into your superannuation for at least three years. For more details on the requirements click here. -
Get your finance in order
Once you've chosen your bank or credit union, get pre-approved for a loan and get a pre-approval letter from the lender. This will not only help you figure out what you can afford before you start looking, it shows agents and vendors you're serious. Depending on how long your search takes, you may need to renew your pre-approval – conditional pre-approval in New Zealand only lasts 90 days. - Find a property inspector you can trust
If you're looking at older homes, a good property inspector will be able to warn you of areas where there are a common problems such as heating and ventilation, leaky buildings and problem materials such as Dux West Piping, Weatherside cladding and Abestos. Do your due diligence. One of the best ways to find a good property inspector is to talk to a tradesperson you've used in the past, one who takes pride in their work and wants everyone in the industry to do the same. - Consult the Land Information Memorandum (LIM)
An LIM report is a summary of information that the local government in your area holds about the property you're looking at. It may include information about the state of emergency placards, potential erosion/subsidence, sewerage drains, overdue rates, NZ Historic Places Trust listings or network utilities. Check out your local council's website for more information on how to order one. - Get your tradespeople lined up
If you're already a homeowner and have been through renovations or repairs, you may have a plumber, an electrician, a roofer, a flooring person and a carpenter you know and trust. If you're moving to a new city or you're a first-time homebuyer, you're going to have to rely on online recommendations.
Here's hoping these seven ways to simplify the process of buying a house make the experience a little less stressful. Happy house hunting!