What are the steps in buying a home?

Ruapehu Bulletin, Volume 11, Issue 504, 21 September 1993, Page 9

What are the steps in buying a home?

According to REINZ councillor, Don Kindley, the first thing yau have to consider is what provisions you have made to enable you to buy a home. Before you get to the stage of looking at houses, the prime essential is to have established a savings programme. "You've planned to buy, but have you planned to save," he asks. "From the word go, you should talk to a real estate agent about how to plan for future purchase. It is essential, he says, to plan well ahead. He also says you should find out how much mortgage interest repayments will cost you each week to buy your own home. "With falling interest rates you could find that it's cheaper to buy than rent!" Having saved a deposit, the next step is to explain to the real estate agent what money you have set aside to purchase a home. "The agent will be able to advise what you can buy for your money and discuss with you what avenues are available to raise mortgage monies. As a rule of thumb, you usually need to corrie up with around 10 to 25 per cent of the price of a house as a start. "At today's prices, that means you need to have saved in the region of $10,000-$25,000," he says. You should bear in mind that the asking price of a house is not necessarily the final buying price.