How to Buy Your Home: The process for buying your perfect
Category Buyer Advice
Buying a new home will always be a big life decision. Not only is it a significant financial expense, but it is where you want to create lasting memories. The buying process itself can be stressful but armed with the information below, you will know what to expect when, and who can help you to make it as simple - and enjoyable - as possible.
Step 1 - Assess your finances
It is important to know what you can afford currently and in the future. Here's how to make sure you keep within your means.
Save: from the moment you start considering purchasing a new home, begin saving for a deposit. This will help reduce your monthly repayments.
Check your affordability: use our bond calculator to help you understand that you can comfortably afford it.
Make sure you have a healthy credit score: this will increase your chance of a successful home loan application,
Get pre-approval: Better Bond can help you with pre-approval of your home loan.
Draw up a budget: with all this information on hand, you can now draw up a monthly budget - and remember to stick to it!
Step 2 - Find your perfect home
You've got the picture of your perfect home in your mind, and now's the time to make it a reality.
Make a list: include all the things you want and need in your home. Think of the type of home, the area, security, and proximity to services.
Look online: you can become an expert on properties in your desired area by searching them online.
Find a real estate agent: while online expertise goes a long way, no one knows the property market in the area as well as an experienced real estate agent. Find one you trust and let them guide and advise you.
Property Alerts: get the latest updates on properties that match your specifications.
Viewing: this is the fun part! But be sure to take your checklist along so that you know what to look for.
Step 3 - Make an offer
This is where it gets interesting. The seller wants the best price, and you want the best value. Here's how to meet in the middle:
Property valuation: research the estimated value of the property you wish to purchase to make sure you are getting value for your money,
Negotiate: let all parties agree on a suitable price and iron out all the contract details before you make an offer to purchase.
Step 4 - Apply for a bond
If you've been pre-approved for a bond through Better Bond, this process is a lot easier.
Process: choose your preferred bank or a bond originator to apply for a loan.
Submit: you will need to submit all your supporting documentation for the application.
Approval: after a property valuation, the application process will take approximately 3-7 working days.
Step 5 - Registration and transfer
Things are starting to get real now!
Registration: once your home loan has been approved, get your property registered in your name.
Transfer: This is quite the process. Here are nine fundamental steps to guide you through it.
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Offer to purchase: this is a legally binding document that indicates the buyer's intention to purchase the seller's property. It also stipulates the terms and conditions for the sale and purchase of the property.
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Application and approval of home loan: the buyer or bond originator applies to the bank for finance to be secured by a mortgage bond. If the application is successful, a bond registration attorney is appointed and a mortgage bond will be registered for the property as security, simultaneous with transfer.
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Cancellation of seller's bond: if the seller does not have a bond, they must provide the original title deed to the conveyancers, who will lodge this together with the transfer documents.
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Rates clearance certificate: South African law stipulates that a property can only be transferred once all municipal charges, rates and taxes, and any other associated costs have been paid in full.
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Signing of documents: a buyer can prepare in advance for this step by collating the following:
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Proof of physical address (not older than three months)
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A certified ID copy
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Income tax number
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Particulars of the attorney undertaking the transfer of the buyer's property (if the buyer is utilising the proceeds to pay for his or her purchase) and information on the approved bond.
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Payment of transfer costs: transfer duty is a property tax levied by SARS based on the value of the property. It is only payable for properties of R1m and more. Transfer duties are paid by the buyer.
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Documents lodged at the Deeds Office: the transferring, bond, and bond cancellation attorneys make arrangements to lodge the documents as a set, as they must be lodged simultaneously.
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Passing of documents: the Deeds Office can be extremely busy, so don't expect this step to go quickly. It can take anywhere between 7 - 14 working days for the documents to be ready for registration.
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Registration of documents: once the documents are registered, the buyer officially becomes the registered owner of the property. The net proceeds from the sale are paid to the seller and the commission to the estate agent. The bond attorney sends the original title deed to the buyer's bank or directly to the buyer if the buyer does not require financing.
Step 6 - Taking ownership
Congratulations you have just bought yourself a new home! Here are some further tips on how to make (and keep) it worth celebrating.
Keep saving: start an emergency fund to cover unexpected household expenses.
Maintenance: be sure to do regular maintenance of your home to avoid costly repairs down the line.
Moving in: use a reputable moving company to move your belongings. Make sure that they offer insurance on their moves.
Decorate: now you can go to town decorating your new home!
Step 7 - Let Chas Everitt help you!
When you're looking for that experienced, expert real estate agent, remember that Chas Everitt specialises in the very area you are looking in. Our friendly and professional agents are ready to help you secure your dream home
Author: Chas Everitt