Beginning on the journey to purchase your first home is an exciting and significant milestone, but it can also be daunting and overwhelming.

It's often hard to figure out where to even start! So let's delve into valuable information to simplify the process and make your home-buying experience more manageable.

Sorting out your finances

To kick off your journey, start by assessing your current financial standing. It is crucial to get a clear understanding of the homes within your price range.

Start by seeking the expertise of a mortgage broker to navigate the complexity of home loans, find favourable mortgage rates, explain loan options, and guide you through the application process.

Prior to embarking on your house-hunting expedition, also take a moment to sit down and conduct a comprehensive evaluation of your financial situation. Calculate your affordability by factoring in your income, expenses, and mortgage rate. Online calculators can be great tools for estimating your borrowing capacity.

Additionally, explore the possibility of utilising your KiwiSaver funds and check your eligibility for the first home grant. These government initiatives are designed to extend financial support to first-home buyers, enhancing your options as you step into homeownership.

Research 

Once your budget is in order, it's time to research the right house for you.

Look into exploring different neighbourhoods and homes in your budget, considering factors like proximity to schools, childcare, supermarkets, and local services. A house should align with your lifestyle, work, and amenities preferences.

I would recommend researching at least six to 10 homes before making your final decision, this approach allows you to understand how your budget aligns with the options in the marketplace (value for money). 

Familiarising yourself with the market and property prices during this process can also provide valuable insights into the features that matter most to you in a home. Open homes are a great way to do this!

While looking for your new home, consider areas with growth potential that could contribute to a good living environment and potential property value increase. But also be mindful of local council zoning rules, which can impact your ability to make future property modifications.

Before the purchase 

You've signed up for a property! However, the journey doesn't conclude there. Initially, it involves a series of crucial steps, including a building inspection, valuation, obtaining a LIM report, securing pre-approval for house insurance, and having a lawyer examine the title and interests.

Before committing to any deal, consider investing in a professional building inspection as a stipulation in your agreement. This ensures a thorough examination of the property, allowing you to spot potential issues and make well-informed decisions.

Ask your agent to help you understand the legal aspects and contractual information involved in the home-buying process. They can guide you through the sale and purchase agreement and the offer process when you're about to make a purchase.

You may also need to sharpen your negotiation skills. Be ready to discuss price, conditions, or inclusions before finalising the purchase. Online valuations are a valuable resource to gather facts and figures that can aid in negotiations. Additionally, leveraging insights from someone experienced in the property market can be advantageous.

Security

Congratulations on buying your house! Ensure its protection by finalising your home insurance. Compare policies to find one that suits your needs, covering potential risks like natural disasters or burglary.

Additionally, consider establishing an emergency fund. You never know what may change, so allocating funds for unexpected expenses tied to homeownership, such as repairs or unforeseen financial shifts, is a wise move. This proactive measure not only creates a financial safety net but also reduces stress during the transition to home ownership.

Need some more guidance on buying your first home?

The REA (real estate authority) has developed Settled.govt.nz, which is a useful resource guiding first-home buyers through the home buying and selling process. Check it out for more information.

If you have any more questions, want to discuss matters with an agent or need personalised guidance on your home-buying journey, feel free to reach out.

Happy house hunting!