We can help cross your t’s and dot your i’s before you make an offer on a house.
Finance is one of the main due diligence checks that purchasers can often struggle to fully understand. Mortgage pre-approval from the bank is commonly confused with full finance approval for the purchase, a misunderstanding can have serious consequences for the purchaser.
Even if you have pre-approval, once there is a particular property that you wish to make an offer on, you should then provide your bank with a copy of the draft Agreement for Sale and Purchase and title, and have the bank confirm its approval for this particular property. If there are any conditions attached to this approval, these should be satisfied with the bank prior to submitting your offer, unless it is something that you are certain you can comply with.
By obtaining an unconditional offer of finance (in writing) from your bank for the particular property that you intend to make an offer on, you can eliminate the need to include a finance condition in your offer.
If you intend to submit your offer without a finance condition, make sure that you thoroughly read any finance approval from your bank and send it to your solicitor to check. If you do not quite have everything you need to complete your finance due diligence, your solicitor can help you to include a finance condition in your offer.
Remember that finance due diligence includes not just bank lending, but other checks such as whether you have funds available to pay the deposit, or confirming your eligibility if you are relying on Kiwisaver or First Home Grant funds for your purchase.
Being careful and proactive with your finance due diligence checks prior to making an offer can greatly eliminate stress and risk throughout the process, as well as helping you to submit a more competitive offer.