First-Time Home Owners Guide
Being a first time homebuyer can wreak havoc with one’s emotions. It both exhilarating and scary all at once. Your first home you can truly call your own is a BIG deal and finding the nest that fits your needs and wants is such a rush. Looking at everything that is available can take hours and become exhausting and confusing, but greater than that all the unknowns that have to be traversed, can be very overwhelming, especially when it comes to financing.
And make no mistake – there will be as many opinions and suggestions that will pull you in all directions, to confuse you even more. Sound familiar? Well, you’re in good company, because we’ve put together a guide that will answer some questions, give some direction and if you need more, please give us a shout.
Understanding the process
Once you get a handle on the steps, it becomes a lot easier. Much like a race, you need to start at the beginning by training (pre-approval), then run a few trail races (viewings and making your offer), and eventually the big race happens (the bond application, valuation and approval). Once the race is over, all that awaits is the winners’ podium (the legal process) and voila, you own your own piece of paradise!
Financial Preparation
You’re going to make probably the biggest financial investment of your life and want to ensure that you have the necessary means to enable you to make this commitment. This starts off by ensuring your credit bureau report reads like a best seller when the banks review it, thus maximizing your chances of an approval of your home loan application. Secondly, consider putting together a deposit to confirm your commitment in securing the deal in your favour. One of the biggest oversights by first time buyers is the fact that there are legal fees which you have to pay in advance?! After you move into your new home, you will suddenly realise there are more costs to consider monthly, such as rates and taxes, insurance and maintenance costs, so working out a budget from the get-go, is critical.
Your Mortgage
The home loan journey is much easier if you understand what you’re letting yourself in for and here is where our years of experience in the industry will assist you in securing the best deal. Because we multi-submit to various lenders, we’re able to leverage the outcomes in your favour to negotiate the interest rate, loan term and conditions most favourable to your needs and requirements.
Savings
Everyone loves a bargain and a freebie, right? This home loan feels a little like a noose tightening a life-long sentence around your neck to weigh you down. Believe me, it’s not that difficult to capitalise on the commitment, but it takes discipline, which is within everyone’s reach. We go into quite a bit of details on HOW to do this and I’m not going to give it away, but really encourage you to go and read through it carefully – we even give you some examples and calculations.
Mistakes to avoid
With property it’s all about location, location, location!! You’re going to hear that again and again, so make sure you do some research and get the facts before you buy. Then ensure you work with a reputable, qualified Real Estate Property Professional that will empower you to make informed decisions when navigating this journey.
Pitfalls to avoid
When an object is under stress, eventually it will break. Don’t over-extend yourself and in the process find yourself at a financial breaking point. Inspect the property that tugs at your heartstrings very closely to ensure that you’ve missed nothing because there is limited reprieve afterwards and it may be very costly to try and rectify your oversight.
In conclusion, this is probably one of the most satisfying journeys to undertake, so carefully plan and then execute that plan with precision. If you fail to plan your plan is bound to fail, but I hope we’ve peaked your interests with some helpful information?! Let’s start by getting you Pre-Approved as the first step.
If you have any questions or would like to learn more, please contact me on homeloans2@capeholding.co.za
