FIRST TIME BUYERS GUIDE TO….PROPERTY

When you take the decision to buy a property, there are certain things you need to do before, during and after the sale. But most importantly, BEFORE you go out looking at property...

Here is a checklist of Must Do items...but remember, if you are working with a professional estate agent, talk to that person and they will guide you through this process.

• DEPOSIT – depending on your financial situation, when you apply for a loan, most banks only offer to lend you 90 to 95 percent of the price you are going to pay for the property – in other words, if the price of the property is R800 000, you will probably need to pay a R40 000 to R80 000 deposit out of your own pocket, and the bank will lend you the rest.
• WHAT CAN YOU AFFORD TO SPEND? Easy to find out. Bond originator OOBA has a tool on their website – the estate agent will send you the link or show you how to do this – and in ten minutes, you’ll know whether you qualify for a loan, and what size loan the bank is likely to give you. You will need to put in some information about yourself, and OOBA’s website will tell you what they’re likely to lend you. Ten minutes, that’s all!
• JUDGEMENTS – if you have any judgements against you (and it can be for a small, old transgression like not paying an account ten years ago), you will be refused a mortgage loan. BUT you can usually clear that judgement – ask the estate agent how to check whether you have any judgements against you, and how to clear your name of those.
• FINANCE – When you know what the bank will lend you, what your deposit needs to be (and you either have it, or can access it), then you can start looking at property. There is no point in disappointing yourself and your family when you realise you can’t buy the property you fall in love with – you need to look at properties you can afford.
• SHOPPING FOR A PROPERTY – when you find a property you love, you will be asked to sign a sales agreement if you want to make an offer or pay the price asked. This is a LEGAL, binding document between you and the seller of the property – by signing it, you are bound to buy the property. Do not sign it if you do not intend to buy the property.

Buying a property is a wonderful experience, but it’s important that you understand fully what you can afford and what the costs are associated with buying that property. This is a legal transaction, so it cannot be made lightly. There are also some costs you may not know about, so ask your estate agent to explain all the costs, the legal process, and the time frame in which all this will happen.

Welcome to home ownership!