Purchasing your first home can be a very scary experience and even more so when it’s your first time. If you follow these steps the process will be smooth and a lot easier.
Get your deposit, transfer and registration costs ready. If this means saving up 3 months before than do it. Over the last few years banks have changed their home loan policies. Now only if you are a first time buyer and meet certain requirements will you get a home loan. You can no longer receive a a loan that is equivalent to 108% of the property’s value. With that in mind, make sure that you plan properly.
Are you selling your current house to buy another one? If so we recommend that you put your house on the market first. Make sure to get advice and do research on how much the property’s sell for in your area so that you can get a round about figure on how much you can sell your house for.
Set up a budget so that you can see how much you can afford to pay for a monthly home loan.
Get a copy of your credit record and go over that before you send an application for a home loan. This way you can see if there are errors and sort it out. If there are things you haven’t paid off that will make your name look bad, tell the bank why because if it is something that was unexpected like being retrenched then they can see it wont happen again.
Go to the bank and ask to speak to a home loan consultant. This way the consultant can assist you in seeing what you can afford and what the best option is for you.
Before you sign that contract to buy the house, make sure you read and understand it all. If you don’t fully understand something ask someone who will.
When buying a house you need to also take into account the hidden costs. What do we mean by that? Well there is more to buying a home than just the amount you have to pay to get it. Be aware of these hidden costs: Utility fees, rates, taxes, levies, monthly home loan installments and how the interest rate can affect you.
Before you make an offer to purchase do research on the area and see what other houses in that area are selling for. This way you can get an estimated figure on how much you can offer rather than just spit balling and maybe paying way more than what you should.
We have also compiled some tips to help you newbies when it comes to buying a house.
- Take photos when you go to look at a house. This way when you need to make a final decision you don’t need to try and remember what the places look like. You can go through your pictures, this will make the decision easier and you wont get confused when trying to remember what house had what.
- Check if the house is close to amenities. This way you can decide if this house is suitable for you and your travels.
- Make sure to take other expenses into account as well. This could be any repair work that the house may need.
- If you are still stuck in-between choosing houses ask if you can go and visit them a second time just to help you make your decision.
movethisStuff wishes you all the best with your house hunting!