Home Loan Process Guide
When buying a home in New Zealand, there are many times when you need to get a home loan, which in most cases or less. Many people are wondering how to buy a house, get approval for a home loan, and actually get a loan and become the owner of the house.
DCT Financial will guide you through the home purchase process, including home loan approval.
Did you decide to find a house? In the past, I used to sign a contract to buy a house and get approval for a loan, but nowadays, I get a pre-approval to find out how much I can get the loan and then I have a purchase contract. In particular, in the case of an auction that has to be purchased without conditions after a successful bid, many people check the amount of home loans that they can receive through pre-approval because they can see the loan after receiving the successful bid.
Home Loan Approval Process
- Consultation-Consultation with customers. Consultation can be done over the phone or at home, as desired by the customer. It asks for current income and expenses, parts of assets and liabilities, and basic personal information to determine the possibility of a loan. And when it is determined that the loan approval of the amount you need is possible, the next step is taken.
- Receiving Documents-We will guide you through the documents you need to apply for a home loan and receive the documents by email.
- Filing and Banking-Organize the documents received, fill out the application form and cover letter. In some cases, additional interviews may be required to complete the application.
- Loan Approved and Notified to Client-Once all documents are in place, it takes 2-3 days to obtain a loan approval. Usually we will send you a letter of approval issued by the bank, but several conditions may be attached. For example, whether you need to pay off a student loan, or set a minimum home sale amount or appraised value, you need to check the conditions. Also, even if the conditions are not specifically stated, the bank does not grant loans unconditionally. In most cases, the loan proceeds with the approved amount without any problems, but for example, if there is a problem with the house building, an apartment that is too small rather than a regular house, or if the bank does not meet the desired conditions, the home loan approval may not be granted. There is.
Home sales contract process
You can view the property you have chosen from a good real estate agent, real estate information magazine or website, negotiate the price, and make a sale reservation. When making a sale contract, it is recommended to put a safety device on the contract to cancel the contract when there is a problem with the house by setting various conditions depending on the condition of the house.
For example, Lim Report conditions to check if the structure of the house is as approved by the City Council, and Builder’s report conditions to check if there is a problem with the house. Attach P-Contamination conditions to check whether or not.
And finally, if the loan does not come out through the finance condition, you can cancel the contract. Even if you have received pre-approval, I recommend that you go through the finance condition for 1 to 3 days or check that there are no problems with the loan process when you sign the house with a bank before signing a contract. This is because, as explained above, depending on the condition of your home, there is a possibility that the bank will not give you a final loan approval.
In the case of a plaster house built at a certain time, the bank may request that the building be inspected for problems. If the problem is found, the loan may not be issued until the repair is completed and the inspection results are submitted again. .
After the home sale contract
If the contract is unconditional, you must do the necessary work for the loan process before the settlement.
- Rate Negos and Rate Fixed-Negos the approved loan rate below the published rate and leaves at a fixed or variable rate for your preferred period.
- Home Insurance -Insurance is required for homes with loans. Depending on the floor space and construction cost, you can purchase insurance with the most suitable option and send the certificate to a lawyer and us. DCT has great home insurance products and offers excellent price competitiveness, so if you don’t particularly want to buy from another insurance company, we recommend you to join DCT.
- Guide to Visiting Banks and Attorneys-You must visit the bank and attorney once to sign the loan documents and pre-registered documents, open a loan account, and pay the balance. After confirming that the documents are in place at the bank, we will inform you of the date of your visit to the bank.
- Settle-When the balance and bank loans come to the attorney, the registration is transferred as specified in the contract.