What's a pre-approval?
A pre-approved loan is when a bank provides an offer for you in which they agree to lend you a certain amount, providing you can meet the requirements they have.
These can vary, and might include;
- Providing a Sale & Purchase Agreement for a property
- Providing evidence of your Kiwisaver or Home Start Grant Approval
These are the things we'll need:
- 3 months of bank statements (savings and current account - see below our guide to downloading statements)
- 2 payslips for each borrower, or 2 years of Financial Statements
- Our loan application forms completed (see link under the video)
- Statements for any current debt
- Screenshot or confirmation of your Kiwisaver balance (if applicable)
How do I apply for Kiwisaver & the HomeStart Grant?
- Call to your Kiwisaver provider to let them know you'd like to apply to use those funds for your first home - they'll then send you an initial withdrawal letter
- Your IRD Tax Summaries for 2 years (log into MyIR here)
- Your Kiwisaver Summary to show you have been contributing to Kiwisaver for at least 3 years
- ID - Driver's licences or passports
- Payslips for each applicant
- Bank Statement showing your remaining deposit funds up to at least 10% of the purchase price
What happens once I have pre-approval?
Once you have pre-approval, it's time to look for the right property!
- Talk to us about making an offer - we can help if you need to include a finance condition
- We'll then meet the conditions on your loan offer - and will be here to help explain and tick these off for you
- We can give advice on making an offer
- We'll liaise with the Real Estate Agent, your Laywer and Accountant if required
- We can arrange a valuation if it's required - all banks have different valuation requirements
What if I need to bid at Auction?
When buying at auction it's important to be prepared;
- Get pre-approved
- Know your budget
- Get checks done
- Get your deposit ready
- If you have less than 20% deposit, a Registered Valuation will be needed
- A few extra conditions