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So you want to buy your first home but don't know where to start?

Category Tips for Buyers

Buying your first home is a big step! With so many things to consider and so much you may not know, it can quickly become overwhelming.

We've simplified the process and divided it into five simple steps to get you on your way to becoming a proud homeowner.


First-Time Homebuyer's Guide
Learn what you need to know about home loans, property searches, conveyancing, and more...

1. Get Your Finances In Order

Here's what you'll need to do to prepare for the financial commitment of a mortgage.

Make sure your credit history is in good shape.

Improve your credit score.

  • If you don't already have one, you should apply for one because it will help your credit score.
  • Get a free credit report from one of the credit bureaus to check your status.
  • Every time, pay all of your bills on time.
  • Clear as much debt as possible before applying for a home loan.


Save for a Deposit

Why should you save for your deposit?

  • Your bond has a better chance of being approved.

  • With a smaller bond, the amount owed is reduced, saving you money on interest over the loan term.

  • Your bond repayments will be reduced if you make a deposit. In general, your monthly bond repayment should not be more than 30% of your gross monthly income.

  • Because there is less risk for the bank, you are in a better position to negotiate an interest rate.


Determine Your Financial Capability

Before you begin looking for a home, you should have an idea of what you can afford.

The ooba Bond Indicator is a free online prequalification tool that allows you to check your credit score and establish what you can afford in just two minutes .

Be Wary of Hidden Costs

A number of additional costs are incurred when purchasing and taking ownership of a home, which may surprise a first-time buyer.

2. Tips For House Hunting

When house hunting, keep the following things in mind:
Your budget - be honest about how much property you can afford.

  • Your requirements - real estate is a long-term investment. Consider your current and future requirements.

  • Your lifestyle - locate a neighborhood that provides the lifestyle you seek. Is it run-down or undergoing rapid development? Is there a lot of noise on the property?

  • The property's security - how secure is it? Is crime under control in the area?

  • Location - close proximity to healthcare, schools, work, and shopping.

  • Your space - this consists of the bare minimum of bedrooms, bathrooms, parking spaces, and garden space that you require. How much will it cost to protect your pets? Are your communication requirements being met? Consider all other initial costs associated with running your household.

  • Property type - do you want to live in a single-family home, a flat, or a complex? Is the complex well-managed and well-maintained? How much do the Levies cost? What are my limitations?

  • Upkeep - Do you have the time to look after the garden and pool?

  • Renovation costs - how much work is required to renovate/redecorate the property? Is it possible to achieve this without breaking the bank?


3. Closing the Deal

When completing an offer to purchase, keep the following items in mind:

  • Check that the property description is correct (as described in the title deed).

  • Are all of the buyers' and sellers' information clearly documented?

  • Check that the purchase price is correctly written.

  • Are you satisfied with the occupation date and the amount of occupational rent?

  • Make sure you are aware of any special conditions and the time frame within which these conditions must be met, such as the agreement being subject to the buyer's bond or the sale of his other property.

  • There could be movable items that can remain on the property. Are they all listed, as well as the movable items that are not included in the sale?

  • Verify that the estate agent's commission is accurate (as agreed upon).


4. Understanding the Home Loan Application Process

  • Step 1 - Submit an application for a bond through a bank or bond originator, such as ooba

  • Step 2 - Approval in principle: After your application has been evaluated, you will be granted approval in principle, subject to valuation.

  • Step 3 - Property valuation: The bank assesses the property's true value.

  • Step 4 - Loan approval: Once approved, you will receive a quotation that includes the approved loan amount, interest rate, and key terms and conditions.

  • Step 5 - Register your bond: When you accept and sign the quote, the bank will formally grant the loan and instruct the bond attorney to register the bond.


5. Registration and Transfer Process

Understanding the legal aspects of registering your bond and transferring ownership of the property. The following attorneys will be involved in transferring your new property into your name:

  • Transfer attorney: Handles the property transfer. They are chosen by the seller..

  • Cancellation lawyer: Removes the seller's existing bond. They are chosen by the seller's bank..

  • Bond attorney: Registers the new bond in the buyer's name. They are chosen by the buyer's bank.

 

Author: Maxprop

Submitted 27 Mar 23 / Views 1593