Before a person begins the process of buying a house he or she will need to know what they can afford. 1. Make an Offer to Purchase. “It’s true that anyone can look for a home, and even get a peek inside, without the help of an estate agent but, unless you have the time to make house shopping a full-time job, chances are an agent will be able to match you with your perfect property considerably faster,” says Rhys Dyer. Different banks have different requirements for when people want to take out a bond for a house. Once you have the report you can ask the necessary experts to quote on any essential repairs. Useful house hunting tips include scheduling house viewings for weekdays (so as to avoid the weekend rush), taking your own photos (rather than relying on agent’s photos, which are intended for marketing purposes), and coordinating your viewings so as to ensure they take place within a short window of time (otherwise there’s a risk of houses you view being sold before you’ve made your final decision). This is your opportunity to discover any latent defects in the property, and it’s important to be aware of what your rights are when it comes to this issue. Finally, when you’re ready, you can apply for a home loan. Buying a house is a big financial commitment, and can be a lengthy exercise. You have decided to enter the property market for the first time - but what next? If you are looking for your dream property in South Africa, you have come to the right place! To check your credit score, download a credit monitoring app. The less of a risk the bank determines you to be, the more favourable your interest rate. Get home buying tips delivered straight to your inbox. The first step is to ensure you know what you can afford, and the kind of home you wish to purchase. There’s no harm in getting a second opinion if you’re not happy with the inspection report. The idea of buying a brand-new home can be tempting. Step 1 – Determine what you can afford. Where are the shops, police and fire stations, medical centres, schools, and hospitals in relation to your new home? Your credit score indicates to your bank whether your past debt repayment behaviour will make you a good risk or not. In the meantime, ensure you pay your bills on time, and don’t borrow more than you can afford; two of the most effective measures for securing a clear credit record. Then, once you’ve found a home that meets your requirements, you can apply for a home loan. You’ll usually need to build up a deposit of at least 5% of the price of the property you want to buy. Carefully choose your desired area by assessing convenience of location, checking crime statistics and talking to neighbours. You can use an estate agent to make the search easier. issues t… Bear in mind you will have to pay a transfer duty to the South African Revenue Services (SARS). Inheriting a house — while a generous gift from a loved one — kicks off a process that can be fraught with emotion. As far as your bank is concerned, your credit score is a big number above your head that tells them how much of a risk you are. Checklist for first-time buyers. Step 2 – Assess your credit record. Now the part people generally enjoy most about the home-buying process, the house hunt itself. For example, if you wanted to buy a house worth £200,000 with a 95% mortgage you would put down £10,000 of your own money, and borrow the remaining £190,000.. Know what you are buying. The process of buying and selling a house is expensive, so make sure you feel confident you’ll be in that area for the next five to seven years. Naturally, the higher the better, and a high credit score rating is one of the most valuable personal finance assets you can have. If you’re unsure where to begin, here’s a handy step-by-step guide to buying a house in South Africa, so you can approach one of the most important decisions you’ll make with clarity and focus: Before you start your house search, you should have a very clear idea of what financing is available to you for the transaction. Sellers are liable for all latent defects in their property for three years after the defects have been discovered. A home is a significant investment, hence why banks have a system in place to help people acquire them within their affordability range, without having to file for bankruptcy afterward. 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