10 Steps To Buying A Home
It should not come as a surprise that the process of owning a house is a lengthy one since it is one of the most important purchases you will ever make in your lifetime.
However, despite the fact that it could seem intimidating at first, you won't really be venturing into unfamiliar ground. The trail is well-marked, and there are knowledgeable guides available to provide assistance at any point along the trip.
Included in this easy-to-follow, step-by-step guide to purchasing a property in South Africa is information on the easiest way to get a mortgage loan.
- A step-by-step guide to the process of purchasing a home
- Find out how much money you have available.
- Examine the details of your credit history.
- Get yourself a real estate agent.
- Discover the house of your dreams.
- Create what's called a "offer to purchase"
- Set up a home inspection as soon as possible.
- Submit an application for a home loan.
- Transferring of ownership and registration of the bond.
- registration of the title deed.
- Get settled.
1. Figure out how much money you have available.
It is important that you have a very good grasp of the many types of financing that are available to you for the purchase of a home before you begin your search.
Getting pre-qualified is an excellent place to begin looking into things. This gives you an indication of what you are able to spend money on.
Working with a Home Loan Consultant is the best way to find out the amount the banks are willing to loan you to purchase a house. Experts like ooba will do all the negotiating with the banks to help you get the best deal so that you won't have to speak to each bank individually.
2. Take a look at your credit history.
When it comes to getting a home loan, the one thing that is more crucial than everything else is your credit score.
The bank will evaluate the level of risk associated with lending money to you based on your credit score. Therefore, it influences how likely it is that you will be approved for a house loan.
The three-digit figure that represents your credit score will range from 300 to 850. Anything over 600 is considered to be an excellent credit score.
3. Get in touch with a real estate agent.
It's a frequent misconception that real estate agents just represent the interests of sellers, but in reality, working with one may be quite beneficial for buyers as well.
You should look for a real estate agent with whom you can have a positive working connection and think about asking your friends and family for referrals. Their familiarity with the local home market, together with their capacity to handle the necessary paperwork and negotiate with the sellers on your behalf, will help the whole process go much more smoothly.
In addition, their services are completely free since the buyer is responsible for paying the fee that they need.
4. Look for the perfect house for you.
Now we'll get to the portion of the process that most people look forward to the most, which is the actual house hunting.
Naturally, this is also the most challenging aspect of the process, since all of your efforts will be for nothing if you are unable to discover a house that satisfies the criteria that you have established for it.
It is beneficial to have a concept of what you are able to afford and to consult with a real estate agent about the current status of the market.
Find out what sort of neighborhood you want to live in, whether or not you want to be near schools and hospitals, and whether or not you want to make any improvements to the home you now own.
5. State that you are making a "offer to purchase"
You are ready to sign an offer to buy a property after you have located your ideal residence and are certain that all of your financial matters are in order.
The terms and circumstances of the sale of the property are outlined in this document, which serves as an agreement between you and the seller of the property.
You will not be able to withdraw from the offer to buy without incurring large penalties if it is a binding agreement (unless the seller fails to meet a stipulation in the agreement). The offer to purchase is a legally binding agreement.
6. Set up an appointment for a house inspection.
A requirement for a home inspection should be included in the offer to acquire the property. This is your chance to find any hidden flaws in the property, so make use of it.
Concerning this matter, it is essential to have a solid understanding of the legal standing you have in your own right. If the voetstoots provision is included in the contract to buy, the seller will not be accountable for any problems, including latent faults, that you find after acquiring the house. Therefore, the procedure should begin with a comprehensive house examination.
A copy of the report will also be sent to the seller, and it is up to you to decide whether or not you want to request that any required repairs be completed.
7. Fill out an application for a mortgage.
The acquisition of a house loan to cover the purchase of the property comes next, after the successful completion of negotiations between you and the seller.
During this stage of the procedure, having the aid of a house loan comparison site like Ooba Home Loans might prove to be of great benefit.
8. Registration of the transfer and the bond
As soon as your application for a home loan is accepted, the seller of the house will engage the services of a conveyancing attorney to complete the process of transferring ownership of the property to you. This is the method that is used to transfer ownership of property.
During this time, the bank will work to get the bond registered in your name by hiring a bond attorney.
You will be responsible for paying the expenses associated with the transfer of property as well as the bond registration. You can figure out how much this will cost you by using the Transfer Cost Calculator that we provide.
The transfer duty, which is a tax that must be paid to SARS, is included in the cost of the transfer. Transfer duty is not required to be paid on properties with a value of less than R1,000,000.
On average, it takes around three months to complete the procedure of transferring property and registering bonds.
9. Registration of the title deed
The title deed is changed over to your name and recorded at the Deeds Office after the bond has been successfully transferred. This demonstrates that you are the rightful owner of the property.
Although you are able to make requests for copies of the deed at any time from the Deeds Office, the title deed will remain in the possession of the bank until you have paid off the loan on the property.
The procedure of registering a Title Deed typically takes around two to three weeks to complete. Having said that, this is subject to change depending on the procedure. It is possible that it will be completed in seven to eight working days if all goes according to plan; nevertheless, if there is a bottleneck, it may take as long as two months.
10. Get settled in
After everything is finished, it is time to move in and begin enjoying your brand-new house.
It is a good idea to put some money away each month to cover unexpected expenditures, such as the fees associated with moving or the price of any home improvements you want to make.