First time home buyers and home loans
Deciding to buy a home is a big step and you may feel very overwhelmed when taking the step. Remember that owning property is one of the best decisions to make and offers plenty security to the owner.
If you do enough research and speak to the correct people, the whole process should run smoothly and the wait and effort should be more than worth it.
The first thing when deciding to buy a house is to consider all the specifications and features you require from a house.
This involves setting up a budget to assess what you can afford and what you are willing to sacrifice, if needed, to afford the bond.
Many home loan institutions require a deposit when applying for a loan, so be sure to work a deposit into your budget.
Remember that the cost price of the house will not be your only expense. There are many other requirements that need to be budgeted for, such as property taxes, lawyer fees and transfer costs that are also involved in the total cost of the sale.
After you have assessed your budget, you can now start searching for houses that falls within your limits and in the area you are looking to buy.
Talking to a specialist
It is important that you speak to a home loan specialist. Specialist can be a person at a financial institution, or you may even consider making use of the services of a bond originator.
They will tell you all the requirements and conditions involved in applying for a home loan. They will advise you on your budget and other loans you currently have that may benefit or may negatively affect your application.
An important rule to remember is that your bond repayment instalment may not be more than a third of your total income.
The specialist will also be able to advise you on what percentage deposit you should make provision for, if required.
The specialist or bond originator will assist you in negotiating a good interest rate and repayment options. They will also inform you of the documentation required for the application process.
Legal assistance and fees
It is compulsory to have legal assistance in the application process to take care of the transfer of the deed to your name and to register the property at the deed office. The registration process may sometimes take up to six weeks to be finalised.
Most financial institutions have specific lawyers they work with regularly and will refer you to the, but you may also use the services of a private lawyer of your choice.
When applying for the loan, you may ask to apply for a larger amount to cover the legal fees of the lawyers involved.
Always be prepared to ask questions and ask advice if any part of the process is unclear to you. After each process, the relevant person should guide you to what the next step is.
Be prepared to have plenty of patience. Buying a house and registering the deed to your name can be a very slow process and should not be hastened if you want it to be done properly according to all the regulations, but as mentioned, at the end of the process and the notification comes through that you the deed is registered to your name, you will be satisfied and will be the proud owner of a new house.