If you’ve decided to buy your first home, exciting times lie ahead! This guide, compiled by the CSI Property Group, breaks down the process of becoming a homeowner and tells you what to expect at every stage of the process.
Step 1: Getting prequalified for a home loan
Before you start looking for your dream home, you need to know how much you can afford to spend. The best way to get a clear idea of the home loan value you will be granted is to get preapproved. End User Finance is a mortgage originator that can help you get preapproved and ultimately get the keys to your own home. If you were to apply to each bank directly for your home loan, you would have to fill in a stack of paperwork for every application.
Applying through a bond originator means that you only fill in one set of paperwork. A good bond originator will also leverage the relationships they have with the banks to get you the best possible deal.
Once you’re preapproved and you know what price bracket you’re looking in, it’s time to start searching for your new home.
Step 2: Finding your dream home
When it comes to your idea of a dream home, you probably have a long list of features that you’d like the property to have. Breaking this down into a list of “must-haves” and “nice-to-haves” will be a big help. For example, while you might need three bedrooms to accommodate your family, a swimming pool might be a nice-to-have rather than a need. Having these lists clear in your mind can help you make the right decision when choosing your property.
A property practitioner whom you trust is an important ally in your home-buying journey. He or she will do much more than help you find the right property – they will provide guidance and support through every stage of the journey.
Step 3: Signing the offer to purchase and securing finance
Once you’ve found the property you want to buy, your property practitioner will facilitate the submission of an offer to purchase agreement. They will then take this to the seller, who will decide whether or not to accept the offer you have made. It’s important to understand that an offer to purchase is a legally binding document – once you’ve signed, there’s no backing out. If you need a home loan, the loan approval process begins once you’ve signed on the dotted line.
If you’ve used a bond originator, then your paperwork will be sent to all the banks, and you’ll get an array of offers. Don’t be disheartened if the first bank you hear from doesn’t have a positive response. The various banks have different appetites for risk, and many people get multiple approvals even if their first response is a refusal.
Step 4: The transfer process
The transfer process begins when the seller appoints a conveyancer. This specialised attorney handles all the legal aspects of a property changing ownership. During this process, you will need to pay the transfer attorney’s fees, as well as the transfer duties (if the price of your property is higher than the transfer-free threshold). The conveyancer will ensure that all the legal requirements for the property transfer are met and submit the paperwork to the Deeds Office for processing. Once the Deeds Office’s job is done, the property is yours! This process typically takes two to three months to conclude if there are no complications. When that’s done, your new home is registered in your name, and it’s time to get the keys and start making memories!
The CSi Property Group has decades of experience in helping people become homeowners. If you’re looking for a home in Gauteng, get in touch today.
