A New Home For Your Wish List?

If you are looking to buy a new home this new year, planning is essential.

Save for the largest deposit you can afford, have all the required documents ready and remember, the sooner you put yourself in a position to enter the property market, the better.

Although it is generally advised to enter the property market as soon as you can, there are a few essential things to remember if you think you are ready to enter the property market now.

Although the Deeds office usually only closes for a short period during the festive season, many attorneys are away during this time and may return as late as mid-January.

This could cause a delay in getting deals through these channels, so take this into account when you plan to buy a home now.

There’s always an increase in home loan applications every year during February as the festive season draws to a close. As such, the best approach for potential homeowners who are shopping around now is to prepare adequately before taking action to apply for a home loan by making provision for bond and transfer costs.

You are more likely to get a better deal if you have a bond originator on your side.

The first step to home loan approval is to get prequalified so that you know how much you can afford before going house hunting.

Having a prequalification certificate can also give you greater bargaining power when negotiating on a purchase price.

If you are looking to buy a home in the new year, you need to ensure that you are ready to enter the property market by doing the following:

  1. Ensure that you have a good deposit

December is well known as ‘bonus month’ for many South Africans, and a cash injection of this kind can spark inspiration for those looking to buy a home to save towards a deposit. A deposit can make banks look more favourably at your home loan application.

  1. Maintain a good credit record

Make sure all your accounts are paid on or before the due date and ensure there is enough money in your bank account to honour all debit orders.

  1. Do your research

Make sure you have received a market-related valuation on your existing home and be ready to go on the market before putting in a ‘subject to sale’ offer.

Save for the largest deposit you can afford, have all the required documents ready and remember, the sooner you put yourself in a position to enter the property market, the better.

  1. Find the Right Real Estate Agent

Real estate agents are important partners when you’re buying or selling a home. Real estate agents can provide you with helpful information on homes and neighbourhoods that isn’t easily accessible to the public. Their knowledge of the home buying process, negotiating skills, and familiarity with the area you want to live in can be extremely valuable. And best of all, it doesn’t cost you anything to use an agent – they’re compensated from the commission paid by the seller of the house.

  1. Get a Home Inspection

Typically, purchase offers are contingent on a home inspection of the property to check for signs of structural damage or things that may need fixing. Your real estate agent usually will help you arrange to have this inspection conducted within a few days of your offer being accepted by the seller. This contingency protects you by giving you a chance to renegotiate your offer or withdraw it without penalty if the inspection reveals significant material damage.

Both you and the seller will receive a report on the home inspector’s findings. You can then decide if you want to ask the seller to fix anything on the property before closing the sale. Before the sale closes, you will have a walk-through of the house, which gives you the chance to confirm that any agreed-upon repairs have been made.

  1. Work with a Mortgage Banker to Select Your Loan

Lenders have a wide range of competitively priced loan programs and a reputation for exceptional customer service. You will have many questions when you are purchasing a home, and having one of our experienced, responsive mortgage bankers assist you can make the process much easier.

Every home buyer has their own priorities when choosing a mortgage. Some are interested in keeping their monthly payments as low as possible. Others are interested in making sure that their monthly payments never increase. And still others pick a loan based on the knowledge they will be moving again in just a few years.

BY: Lindelani Masikane – Candidate Attorney

For More Information contact Randles Attorneys on 033 392 8000

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