From renting to owning: Key steps through the home-buying journey

Do you have your sights set on getting in the door of your first home?

For many people, owning a house is a key life goal. It can offer security, stability – and usually the chance to paint the walls any colour you like!

But where do you begin?

Here are some key steps to work through if you are about to embark on a home-buying journey.

Understand your financial position

A good first step is generally to look at your financial situation and determine where you currently are, compared to where you probably need to be.

That might mean looking at what deposit you have saved across your KiwiSaver and other savings or investments, checking your spending and how much of a surplus you’re able to put aside each month, and looking at your income.

(Depending on how much you earn as a household, you may be able to qualify for the First Home Grant subject to meeting the other KiwiSaver First Home Grant terms and conditions.)

Many people find it helpful to book in an appointment with a mortgage adviser to go through this initial “check-in” process.

As advisers, we understand what lenders are looking for. We can run through your current financial situation with you and advise you what, if anything, you might need to do to get in shape to buy.

We can also help you go through your account conduct to determine whether there is anything that might concern a lender.

Getting together early can often make the eventual home loan application process a lot smoother and less confusing for a firsttime buyer.

Exploring your mortgage options

Once you are ready to go, we can also help you identify the mortgage options available to you and help you with your application.

We can advise on how much you may be able to borrow and what the repayments are likely to be.

Because we are in the market all the time, we can guide you on the banks’ lending criteria and appetite, and which lender and loan structure might be an appropriate fit for you.

If mainstream banks aren’t an option for you now, we can also help you to consider whether a second-tier lender might be a solution.

Finding the right property

Now for the fun part – finding your home!

Many buyers find the best way to get a sense of the market is to view a lot of homes, and then find out what those properties sold for.

That helps you to gauge the likely market value of any new homes that come on to the market within your budget, that appeal to you.

You can also use sites such as oneroof.co.nz and homes.co.nz to get an indication of what houses are selling for in the area you want to buy in.

It can help to go to view properties with a list in mind of things that are non-negotiable for you, such as the number of rooms, maybe the storage available and parking situation – and then things that you consider are “nice to have” but not vital.

When you go to an open home, you can also check for things such as the home’s sunlight, moisture, insulation, heating and any other aspects that are important to you.

Many first-home buyers also choose to have a building report done on properties they are seriously considering, for peace-of-mind.

If you are interested in a property that is up for auction, we can help you get preapproval before you bid. Sales under the hammer are unconditional, so you need to have your finance sorted out before, and know what your maximum available spend is, before you can bid at auction.