First home beginners guide

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pctek

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#1630681 15-Sep-2016 09:34

reven:

step 1. go to a mortgage broker,

personally for a old house, i would always get an inspection, they cost about $750 (I just had one done a couple of months ago when I bought a old house (30 years old)). For a new house that has a 10 year master builder guarantee, and CCC, i would potentially skip it.

Mortgage brokers do do that, but they don't take into account whether you would be happy with the bank.

We got ours with the bank we were with. You can negotiate rates yourself - if your savings history is good, your income is good and your credit history is good.

I always get an inspection, no matter how old or young.

Friend bought a 4 yr old house without one, there were several issues they found later. Trust nothing.

Get a lawyer, sign nothing without one. Check all clauses in the purchase agreement. I had one where the building report clause said vendor could repair, I asked for the one that says we can pull out. REA denied knowledge of such a clause at first until I said I wouldn't sign, then she "found" it and inserted that one instead.

Trust no-one.

33coupe

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#1630871 15-Sep-2016 13:00

Thanks for all the replies and info, some really great knowledge and tips there.

Will definitely see a mortgage broker (we know one through the family).

Mortgage rates are something i need to do it homework, have no idea what is a good rate. And as someone mentioned, need to check we can afford payments should the interest go up.

I would be looking around south east Auckland eg pakuranga (if I can afford something!). There's no real rush to move but can't spend another winter in this rental.

xontech

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#1630895 15-Sep-2016 13:26

Mortgage Brokers may be good, but IME I've done better going to banks direct, especially if the brokers don't deal with the banks that have/had better rates (Kiwibank IME). Last time was around 10 years ago so things may have changed.

Another tip when dealing with Auctions is that you do have the option to submit a pre-auction offer. If the vendors accept it there is still an auction, but it is brought forward to be within 3 days (I think) of the offer being accepted. Basically a strategy to try and reduce competition. Main downside is you then also reduce the time you have to do all your checks etc.

xontech

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#1630897 15-Sep-2016 13:27

Oh, and good place to start for checking out interest rates is here: http://www.interest.co.nz/borrowing

mattwnz

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#1630906 15-Sep-2016 13:35

Housing inspections are usually only visual, and they can check for stupid things that you can check yourself, like whether a door has a doorstop behind it. So don't usually tell you if something could be leaking and causing structural issues behind the cladding, as it can't be seen. From my experience they can also miss things. They usually only do the test over a short period of time,. If you really want to check a house, you have to go over it with a fine tooth comb, which can take several hours. So if you do get one done, use someone who has also been a builder or has a lot of knowledge in the building industry, and get them to check things like roof and all flashings, and the envelope, and around window and flashings. Do the basic stuff like checking whether light switches and powerpoints work yourself.

I think it is just as important to get it done an a new house, as it is on an old house. You would be surprised how many things get missed when building a new house.

sxz

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#1630960 15-Sep-2016 14:27

xontech:

Oh, and good place to start for checking out interest rates is here: http://www.interest.co.nz/borrowing

They don't show specials however or how far a bank will go...

Typically, if you are borrowing around $500k odd the banks will offer about .30% off the current rates, I've seen 3.99, 4.05% etc. If you are borrowing around $200k expect your discount to be minimal, maybe 0.1% of current rates. If you dont have good equity - no discount.

Further advice:

ask banks to contribute to your costs. They should give you at least $1k, moving up to about $5k depending on how much you are borrowing, and the level of your equity. The more borderline you are the less they will contribute.
Don't expect Kiwisaver etc. to be fast. Get pre-approval where possible.
Some agents are fantastic, most are good, but some suck. Always remember they act for the Vendor and not for you.
It's the biggest investment most people would ever make - spend the money to check it out to make sure it will be a good investment. Money spent on reports that just tell you there is nothing wrong with the property is money WELL SPENT.
Ger your lawyer to check the contract before you sign. Contrary to popular opinion you can not just 'walk away' from a conditional contract. You must do your best to satisfy a condition, and it is not always easy to cancel. A solicitors approval condition is not really worth much.
Auctions are unconditional. Do not bid unless you know you can and will buy.

Dyson

Shop now for Dyson appliances (affiliate link).

qwertee

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#1668392 12-Nov-2016 09:07

Hi,

I am in the process of looking at the prospect of applying for a home loan.

Do banks check the credit limits on my credit cards,

I have 2 cards with no money owing but jointly they have maximum spend limit of $8000.

Should I bring down the credit limit of the 2 cards before I start talks with my bank'

Thanks

(PS: sorry for the double spaced lines as I do not know how to get it adjusted)

KrazyKid

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#1668432 12-Nov-2016 10:19

Banks will ask about all your debts and income. They want to make sure you can afford payment.
If you have credit card debt it is always a good idea to pay it off before you get interest bills.
If you just have a credit limit you may not have to reduce the limit. It will depend on your overall situation.
In short ask the bank or broker when you get pre approval. You might not need to.

pctek

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#1670034 13-Nov-2016 14:29

when i go to an open home do i need to get a pre purchase house inspection report, or can it be done after the auction ( if auction day after open home).

Any other things to do, fees on top of house cost etc?

Any advice would be hugely appreciated.

Thanks

Hell no. If you were the successful bidder at auction, you're stick with it.

Get a builders report - if you like the house, after your own inspection - and before any auctions.

If buying the old school way, make sure the REA has a clause in the form that states you can pull out if issues are major.

You may want a LIM report to check things like boundaries, work consented, drainage issues etc.

This may not be 100% reliable though, as shown by Fair Go stories on slack councils.

This costs.

You may also need a market valuation to keep the bank happy - so they can see you are not borrowing more than it's really worth.

That costs.

Finally you need a lawyer to check everything and do the title stuff, this also costs.

eracode

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#1670181 13-Nov-2016 17:53

Almost all the time, banks do not require a registered valuer's report so long as:

- you're going to live in the house yourself (i.e. not an investment property)
- there's a RE Agent involved (i.e. not just a price agreed between you and the seller)
- the purchase price is below a certain figure (often $2m)

and then the bank will treat the purchase price as true evidence of the current market value.

Sometimes I just sit and think. Other times I just sit.

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