5 Top Tips for First Time Buyers
5 Top Tips for all First Time Home Buyers
By Walter Kroggel –CCH Muizenburg
Buying your first home is a dream come true for most of us, but it can also be a daunting experience. Taking control early on will ensure you have a positive and rewarding experience throughout the purchase process.
1. Know what you can afford!
Use the CCH affordability calculator to work out what you can afford. This will give you a good indication of what areas and price brackets you should be considering. The bond and transfer cost calculator, the bond repayment calculator as well as the currency converter, (if you are based outside of South Africa), are all very useful tools to educate yourself as to what you should be budgeting for.
2. Save Save Save
Save more than 10% for your deposit. This will put you in stronger position to negotiate a better interest rate with the banks.
Remember that transfer and bond fees are payable in cash to the conveyancing attorney, so make sure you save for this, over and above the above the deposit
3. Streamline your finances
Banks will generally require one third of your income to be disposable in order to grant a home loan. Make your salary work harder for you by cutting out on unnecessary luxuries and managing your monthly expenses. If you are a self-employed individual, please follow this link – as your application process can be a much more tedious process if you are not well prepared.
Try also reducing your exposure to unsecured debt, such as credit cards and personal loans. This will free up more of your income to service your home loan.
4. Stay focused
When would like to move into your new home? Setting a goal and time limit for when you would like to purchase and move into your new home will keep you focused on saving and streamlining your finances.
5. Work Smart
Approach a bond originator for a pre-qualification certificate. This will confirm how much you can afford and what type of home loan deal you can expect from a bank.
The pre-qualification certificate is free and will give significant negotiation power when looking for property, approaching an agent and making an offer. Please follow the link to an article about the importance of a good credit score – when applying for a bond.
It also takes care of most of the paperwork, so once you have signed the Offer To Purchase, the actual bond application process will be much quicke and easier.
For a detailed guide to purchasing your first home in the Muizenberg area, please inbox Walter Kroggel with your email address and I’ll send you one. Walter can be contacted at walter@cch.co.za or 081 580 1428. For more lifestyle photos and facilities of the Muizenberg area, please follow Walter’s Pinterest Boards : https://www.pinterest.com/WalterAtCCH/