The home buying process: Steps to take before making an offer
You’ve found your dream home, now what? It’s easy to fall in love with a property and want to buy it immediately, but there are a few key steps you need to take first to make sure you end up with a peach, not a lemon.
Hopefully, you’re already pre-approved for a home loan and, if you’re using a First Home Grant, you’re pre-approved by Kāinga Ora – Homes and Communities, too. (If not, take a look at our blog The home buying process: Getting started for all the info you need to kick off the process).
Chat to a lawyer
Your first call before making an offer is to your lawyer. They’ll review the sale and purchase agreement and help you to make an informed decision when it comes to buying a home, as well as helping to pull the offer together, alongside the real estate agent selling the property. Your lawyer will also provide guidance on what conditions you need or might want to include and what information we need to process your home loan. These conditions give you time to do due diligence. Generally, vendors like to see fewer conditions on an offer, but ultimately you need to be happy with the offer that you’re putting forward, so if there are conditions that you feel will give you peace of mind, it’s important to include them.
Making an offer
When you’ve done your due diligence and you’re satisfied with the property, you’re ready to make an unconditional offer, or, if you made a conditional offer, you’re ready to confirm to the vendor that the conditions have been satisfied.
Once the finance conditions have been met, you’ll receive an Unconditional Letter of Offer from us. You can then pass this onto your lawyer who will confirm with the seller’s lawyer that you’ve met the finance conditions.
Organise your KiwiSaver
Finally, if you’re using your KiwiSaver, or a First Home Grant for your deposit, then you’ll need to engage with your KiwiSaver provider and Kāinga Ora – Homes and Communities (if applicable) to make sure these funds will be available on the settlement date. Talk to your lawyer to make sure all the paperwork is in order so that the funds will be there when you need them.
Congratulations! You’re officially one step closer to being a homeowner!