by Ivandee Fitchet – Mortgage Adviser – https://networkfs.co.nz/about-us/
1. Not shopping around or panic buying – It’s an emotional process to buy a home, but it needs to be the right home.
Yes you will get despondent if your offer does not get accepted but don’t panic, keep looking, shop around and ask your adviser to assist you with the properties you find.
People will often forget that their Mortgage Adviser is dealing with property all the time, and will be an amazing source of information and assistance. Engage with your adviser, ask lots of questions, and ask other people as well. This is not the time to panic.
It’s easy to get FOMO (fear of missing out) in crazy times like early 2021, as prices seem to be skyrocketing with no let up, but things DO change, and we’d hate to see people make poor choices.
Some more information about why using a Mortgage Broker is a smart decision here: https://networkfs.co.nz/2018/07/16/why-use-a-mortgage-broker/
2. Under estimating the purchase costs – in addition to the purchase price there are other expenses to take into account like legal fees, inspection costs, insurance premiums. Again, talking to your team will help. That team will often include your accountant, a Mortgage Adviser, and your solicitor.
Ask lots of questions, nothing is too silly to ask, and think all of these costs through. If it’s your first property purchase, some of these costs can be surprising, so be sure to have the conversations you need to have, so you aren’t left with any nasty surprises.
3. Not knowing how much you can afford – It’s important to know beforehand what you can comfortably service, sit with your adviser and do your statement of position, this will not only give you peace of mind of what you can afford to buy but will allow you some level of confidence to what price bracket to look at when you go house hunting.
At the moment, in 2021, having some extra budget is useful, as prices have been “surprising”, to say the least.
4. Choose your solicitor carefully, they play a vital role in the process and you need to trust the legal side is in good hands. It’s so important to have them ensure your sale & purchase agreement is gone over with a fine tooth comb so that you are covered.
5. Costs and time for property inspections; they banks may request a Registered Valuation (RV) to be done on the house, this is costly but money well spent. Having a property inspected can bring potential problems such as structural defects, water damage / leaky homes that could lower the value of the property.
6. Assume all mortgages are the same: there are strict rules and guidelines as to how the banks finance certain properties, it’s not a “one size fits all”. This is one of the key reasons for using a Mortgage Adviser – a deep understanding and experience around the different solutions available.
Don’t worry, you are not alone. The usage of Mortgage Advisers in New Zealand has increased a lot over the last 10 years, showing us that it’s a smart choice to engage a Mortgage Adviser to walk you through this process, and to get it right for your personal situation.
Would you like to talk to us about your situation and needs? Reach out – we’d love to help you: https://networkfs.co.nz/contact-us/