Great! We’re getting close to helping you into your first home. By now, you should have worked out roughly what you can get together as a deposit, and touched base with one of our advisers to get an indication of how much the bank will be willing to lend to you.
The pre-approval process is relatively straight-forward, and it’s best for you to get a pre-approval when you are within 1 month of purchasing a property. While you don’t have to know the exact property you’re looking to purchase, it’s important you’re certain you’ll be going ahead with a purchase soon, as Pre-approvals are only valid for 2 months. Until this point, you can speak to an adviser to get an indication of how much you’re able to borrow.
A pre-approval is essentially a bank saying “We are willing to lend you $X, within the next 2 months, as long as you meet our conditions”.
In order to get a pre-approval you’ll need to produce a full application with an adviser. You can do this through your dashboard by hitting “apply now”.
Depending on your situation, you’ll need to produce a number of documents that are time sensitive, such as payslips, so it pays to hold off until you’re ready.
Once you’ve received an approval, it’s likely you’ll need to meet a number of conditions. These will generally include the following that needs to be done before settling on the property:
- Unconditional sale and purchase agreement, signed by both the purchaser and seller stating the agreed price.
- Providing evidence of your deposit, through gifting certificates, homestart grants, and your Kiwisaver first home withdrawal balance.
- Confirmation the property you intend to purchase is acceptable to the bank as security. This usually means that it’s structurally sound
- You’ve opened your bank accounts at the bank you’re getting a mortgage from if you’re not an existing customer.
It’s important you don’t let these deter you. Working with an iRefi Mortgage Adviser, you’ll be able to navigate this process in a timely fashion without any stress.