Finding your dream property is an exciting moment. However, it’s essential to take certain steps to protect yourself and have a successful transaction. We’re going to walk you through the key steps to take when you find a property that captures your interest.
Seek Legal Advice for your Sale and Purchase Agreement (SPA)
Before making an offer, it’s crucial to consult with a solicitor who can provide guidance and ensure your interests are protected. Review the sale and purchase agreement, ensuring it includes clauses like ‘Finance Approval,’ ‘Solicitors Approval,’ or ‘Due Diligence.’ These clauses will give you time to seek legal advice and arrange financing before committing fully to the contract.
Finance Approval
Once the owner/developer signs your offer, submit the agreed SPA to your mortgage broker. They can help you with securing finance approval for the property. Your solicitor will also receive a copy of the agreement and will review it to address any concerns or legal considerations.
Property Valuation
Your lender may require a property valuation, which can be done during the conditional period for existing properties or prior to completion and settlement for new builds. Your mortgage broker will coordinate this valuation, though there’s normally additional costs involved.
Assistance with KiwiSaver and First Home Grant
Your solicitor will be instrumental in guiding you through the KiwiSaver Withdrawal and First Home Grant application processes. They’ll ensure timely transfers of these funds to the appropriate bank accounts.
Additional Costs to Consider
When purchasing a property, it’s essential to factor in additional expenses. These may include building inspection reports, solicitor/lawyer’s fees, valuations, LIMs/Titles, council rates, insurance costs, and other fees specific to your circumstances. Be mindful of these costs as you assess your budget and plan accordingly.
Conduct Due Diligence
During the due diligence phase, prospective buyers perform a comprehensive check of the property. This process includes verifying its physical state, specifications, plans, legal standing, and actual market value. Many buyers also seek final lending approval from their bank during this phase.
When you find a property you love, it’s essential to proceed with caution and thoroughness. Seek legal advice, secure finance approval, and conduct due diligence to minimize risks and ensure a successful purchase. Consider additional costs and expenses while making informed decisions. Remember, the small investment of time and money upfront for checks and reports can save you significant expenses in the future. By following these guidelines, you’ll be well-prepared to navigate the process confidently and make your dream property a reality. Head to our Instagram or other blogs for more tips and tricks on home buying!
