Starting your real estate journey with the help of a qualified and knowledgeable real estate agent will not only help ease some of the stress but will usually also ensure you find the right home for you.
We take a look at some of the most asked questions and what you need to know when you are getting ready to buy a home.
How is the market right now?
Knowing what the market is doing in your local property market will ensure that you are more prepared about pricing, how long your property will be on the market - if you are selling your current home as well - and if you will be able to negotiate the asking price (in a buyer's market) for example.
How do I qualify for a home loan?
By getting yourself pre-qualified you are ensuring that sellers know you are a serious buyer and it will also help you set realistic expectations of what kind of property you will be able to purchase.
Here is a run-down of the documents you will need for a home loan application and additional documents required if you are buying through a trust. We also take a look at individuals that are self-employed.
Documents you require for all applications
- A copy of your ID document
- A copy of the offer to purchase containing both the seller and purchaser’s details
- Proof of income. You will need to provide a salary slip (not older than two months), or a letter from your employer with a breakdown of your salary and deductions. If you are self-employed then you will need a letter from an accounting officer confirming your income, or a statement of your assets and liabilities
- Six months’ worth of bank statements
Employed buyer
- If your earn commission or overtime, provide the latest 6 months statements. Statements should be verified and supplied by the bank - internet statements aren’t acceptable.
- Copy of your ID document.
- Copy of Marriage Certificate or ANC Contract (if applicable).
- Application form and consent document.
- Copy of the Purchase Agreement.
Self-employed buyer
- Proof of income: Letter of Drawings from an Accountant (for all applicants if applicable).
- Personal Assets & Liabilities Statement.
- Latest 2 years' Annual Financial Statements.
- Where Annual Financial Statements are older than 6 months to date, Current Management Accounts not older than 2 months signed by the applicant and accountant must be provided in addition to the Annual Financial Statements.
- Copy of Marriage Certificate or ANC Contract.
- Copy of Registration Documents or Trust Deed.
- Application form and Consent Document
- Copy of Purchase Agreement.
- Documents you require for a trust
- A copy of the Trust Deed
- A resolution by the trustees advising who may sign the home loan or pre-approval application and property purchasing documents
MyProperty’s Bond Calculator will allow you to get an estimate on your monthly bond repayments.
Where do I apply?
Get pre-qualified and apply for a home loan by using our team of trusted home loan experts
How long will it take for me to find a home?
In the right market and with the right agent, finding the right home for you shouldn't be a difficult process. You can cut down on seeing all the wrong homes by doing research on neighbourhoods and looking at homes for sale in your desired area online.
Here are some tips on how to save time when house hunting online
What are the costs I need to prepare for?
There are a number of layers of costs involved, with most of them being for the buyer’s account. Here is a rundown of costs that you need to keep in mind:
- Deposit
- Bond registration costs
- Transfer duty
- Bond initiation fee
- Moving costs
- Connection of various utilities like water and electricity, internet, armed response etc
- Any maintenance, repair or replacement of fixtures, fittings at the new home
- Occupational rent
- Building and contents insurance
- Most banks require life insurance if you are taking up a home loan
- Rates and taxes
