How to buy your first house... Corena Botha - eXp Realty Estate Agent
THE INS AND OUTS OF BUYING YOUR FIRST HOME
The first step to buying a home is being prepared. What should your credit score be in order to secure a home loan at the best rate, and how can you take steps to raise your credit score before applying?
1. Affordability
Probably the most important aspect is being able to afford property. The economy has a lot to do with that because poor growth usually means cost hikes and pressure on what you can afford. Allow for room in your budget, especially in view of potential cost hikes such as pertrol/electricity. Buy below, rather than above your means. If you buy smart, you can always grow with your house.
2. Prequalify
Most first-time buyers require home loan financing and need to understand what is required, as well as the process. Once you know what you can afford, you need to ensure that you qualify for a home loan. This means a clear credit record and regular fixed income.
Get a home loan prequalification before buying so you know your buying power.
Another thing to consider is safety. As one of the more important factors to take into consideration, search for a home in a suburb where crime remains low. Look at data on crime statistics, chat to residents, visit the local police station to get a direct feel for the area and its surrounds, and make the effort to drive through the area at different times of the day as this will also allow for a more realistic feel.
4. Property type
If you are young and single, you may want a flat, small townhouse or semi, but do think about your needs later on. If you opt for a sectional title property, check aspects such as whether pets are permitted and know what is considered your section and exclusive use versus common property. Also, check the conduct and scheme rules around parking, renovations and so on. Check whether the property offers internet and fibre connectivity. Following the water and electricity issues, check whether the property offers a water storage system, as well as solar power. Also check all aspects of the swimming pool.
5. Property viewing
Despite digital advancement, there is no substitute for physically viewing a property. Do a thorough walk through and check all aspects relating to the condition of the property. Be sure to also check if there are any conditions attached to the title deed, such as a usufruct, servitude or other restrictive conditions, as well as the zoning. If it is a sectional title property, be especially sure to check the complex or scheme rules, including aspects such as keeping of pets.
6. Offer to purchase
Following a thorough inspection of the property and clarifying any concerns or questions about the condition with the agent, it is time to put in an offer. When making an offer, make sure it is the best offer that you can make, especially if it is a property which has attracted a lot of interest. Don’t bet on a low offer because you may just lose out to another buyer.
7. Getting a home loan
Because you have already done your prequalification, this should be fairly straightforward, but remember that the bank will need to find adequate value in the property and may require a deposit payment. Documents needed include the accepted Offer to Purchase, proof of income and at least three months’ bank statements (additional requirements if you are self-employed), FICA verification, identity documents, a marriage certificate or ANC contract (antinuptial) if applicable, and in some instances, also a personal assets and liabilities statement.
8. Transaction costs
You will need to ensure that you have cash funds available for the various transaction costs that need to be paid, in addition to a deposit which may be required. These costs include transfer duty based on a sliding scale, plus bond and registration costs and the transfer and bond attorneys’ fees. These fees usually need to be paid upon signature of the bond and transfer documentation.
By using these simple tips as guidelines, you as a buyer and with the help of your agent, will be better informed and equipped to make the smartest choice regarding the best suburban fit for you/your family.
Comments
Post a Comment