That Home Loan Hub
Welcome to That Home Loan Hub, your ultimate guide to mastering the world of home loans and property. I'm Zebunisso Alimova, here to simplify the complexities of real estate and provide you with expert insights and the latest trends.
Whether you're a first-time homebuyer, an experienced investor, or simply curious about the property market, this podcast is for you. Join me each week as we unlock the secrets to property success and help you make informed decisions. Let's dive into the world of property together!
That Home Loan Hub
From Offer to Acceptance: Understanding Live Deals in Home Buying
Navigating the property market as a first-time buyer can feel like learning a new language. One term you'll need to master quickly? "Live deals."
Most major banks have implemented strict rules refusing pre-approval applications for buyers with less than 20% deposit, creating a challenging situation for many aspiring homeowners. The solution? Understanding how to create and leverage a live deal to get your mortgage application prioritised.
We break down exactly what constitutes a live deal: a Sales and Purchase Agreement that's been signed by both you and the property vendor. This seemingly simple document transforms your theoretical interest into a time-sensitive transaction that banks take seriously. Once the vendor signs your offer, the countdown begins - typically giving you 10-15 working days to secure financing if you've included the crucial "subject to finance" condition.
The value of working with a mortgage advisor early becomes clear as we explain how they can prepare your application to be "99% ready" before you even find a property. When you do find your potential home, they'll help navigate the offer process, highlight the urgency to banks, and potentially connect you with solicitors who'll review your first offers at no cost.
For first-home buyers feeling overwhelmed by the current market, we've got you covered. Join our free First Home Buyer webinar this Thursday evening to ask your specific questions and learn more about the practical steps to homeownership. Comment "webinar" to receive the registration link and take your next step toward owning your first home in New Zealand.
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Hello and welcome to their home loan hub.
Speaker 2:You've got a new host. Hello Kunj.
Speaker 1:Hi, how are you? That was awesome. How did that feel A bit weird, but you know I was like she's not ready, but I am, let's go, let's go, this doesn't happen often when I'm not ready.
Speaker 2:But hey, I got distracted because our first home buyer was calling me and asking me what is a live deal?
Speaker 1:Yes, Can we dive into that? Yes, we should actually so. Live versus non-live deal. What's the difference? What is a zombie?
Speaker 2:So a live deal. A lot of the time people come to us they're first-time buyers. They don't have 20% deposit and at the moment majority of banks have put a blanket rule that they will not accept pre-approval applications if you don't have 20% deposit, unless you're a Kayanga or a first home loan. So then we say to them look guys, we can get your deal pretty much 99% ready, but you've got to bring us back a live deal.
Speaker 1:What is a live deal? A live deal is basically, um, you making an offer and having it accepted on a sales and purchase agreement signed, so then we can get it to the bank and get it approved as a live deal, basically so you find a property, yep, you dig in.
Speaker 2:You can dig in, I love it. You find a property, you like the property. You speak to the agent. You say I want to put an offer. And this time usually people go how do I put an offer? Do I just shake hands? No, you ask the agent for a sales and purchase agreement. You get the sales and purchase agreement, you put a price on it, whatever you want to offer, and then there will be a few other things that we've covered off in our previous episodes. And then, once you sign it, the agent takes it back to the vendor, make sure there are conditions in there, subject to finance, 10 to 15 working days, et cetera. The agent takes it to the vendor. The vendor signs. Now that becomes a live deal because the vendor has signed it, deal because the vendor has signed it. Once the vendor has signed it, your time starts now. Yeah, basically, if you put 15 days for finance condition, your day, so countdown starts where you have to get the finance 15 working days as well.
Speaker 1:Yeah, 15 working days Very important, especially around public holidays and weekends.
Speaker 2:So we get the offer and this becomes a live deal and now we can send you to your respective respectful, respected, Respective bag. I love it. I love when English departs me To your respectful.
Speaker 1:Respective Respective Respective Respective banks, and both English is our second language. In my case, it's my third. I don't even know if that's correct. Is that correct, matt? I hope producer Matt agrees with us. Awesome, okay, our producers and you are so respective.
Speaker 2:So then what happens next is we send this to the bank and we in the subject line we say to the bank, we scream at them this is a live deal, We've got until 1st of June to meet all the conditions.
Speaker 2:Please hurry up and look at this application. So your application gets in the queue because on the other side at the bank there is a person that sits there and checks everything that comes into the queue, Correct, and at the moment there are hundreds and hundreds of applications that are coming through and if it's not a live deal, they will push it back and they will say come back to us when it's a live deal. Yes, correct. So by you putting an offer, by using those conditions and again we've got solicitor recommendations that wouldn't charge you for the first one or two properties to help you with those offers. Yes, this is the best way to go, yeah, Then you learn the process, you're in the queue and then, once you're in the queue, the bank can look at your applications and if there is anything that could be wrong, like credit check issues or not satisfactory bank account conduct, then at least it can come back to us now and we know that something is wrong and we can address it, but having a live deal is super important.
Speaker 1:A live deal gets prioritized by the bank and gets you in the queue faster as well.
Speaker 2:Yeah. So it's a little bit of a tough situation here, because sometimes people you know want to know first whether they care. And I guess this is where our power comes in, by sitting down with clients, calculating their capacities and abilities and then saying, yep, you're ready, or you're not ready and you need to do X, y, z. So it's very important to see an advisor well ahead of wanting to make an offer.
Speaker 1:Yeah, for sure.
Speaker 2:Yeah and hey, did you know? This Thursday I'm running a webinar for the First Home Buyers. Cool, tell me more. We're going to cover off some of these topics as well. So, because I've noticed there is a massive need for people to talk back to us. You know, it's one thing that we're talking right now in this environment, but a lot of people are coming in and they're asking these questions, and here is the opportunity to ask us questions in real-life setting that are actually important to them in that moment. So, if you're interested to come to the webinar, comment webinar and we'll send you the link to register. It's free, it doesn't cost you anything, just your time. It's after work hours, so get the kids to bed, you know, cook your tea, get your glass of wine or a cup of tea if you want to, and just sit down and let's uncover what it takes to buy your first home in New Zealand. Cool, make sure you. Comment webinar.
Speaker 1:Thank you Bye.
