6 Important Steps to take before purchasing your first property
Category Property
Buying a house is a big decision, one in which the buyer will have invested numerous hours of research, planning and careful consideration. It makes sense that a first-time buyer would want to make the most of the current low interest rate environment and realise the dream of owning their first property. Here are 6 steps buyers can take to make sure the process runs as smoothly as possible.
Step 1 - Determine what you can afford
Before you start browsing all the listings on property websites and portals like www.property24.com, www.privateproperty.co.za and www.meridianrealty.co.za, you should have a clear idea of what they can afford. Determining what you can afford will take careful budgeting and planning, an area where the assistance of an experienced financial planner will not go amiss.
Step 2 - Save for the deposit
Once you have a clear sense of what your budget will allow, you can start saving up for the deposit. With the necessary guidance, you will be able to estimate how big a deposit you will be able to save ahead of the time, something that will lower the mortgage amount you need to apply for. This step can be taken far in advance, however, and will benefit you greatly once you do decide to invest in your own property.
Step 3 - Assess your credit and get pre-approval
Another step that should be taken beforehand, is to analyse your credit record and get pre-approval for a home loan. This will allow you to plan more efficiently by knowing how great a deposit you will have to save up by knowing how great a home loan you can qualify for. Through pre-approval from an experienced mortgage originator like MyMortgage you remove any unwanted surprises that may have awaited you otherwise.
Step 4 - Keep the necessary documentation ready
This may feel like skipping ahead, but once you've found the perfect home and want to apply for a home loan, you will need to submit a number of documents, including documents you can prepare beforehand, such as copies of your ID and marriage certificate/antenuptial contract (if married). Having these documents ready ahead of time saves you valuable time when you've found your dream home.
Step 5 - Find a real estate agent
Real estate agents offer you insight into an industry and market that requires all the know-how you can muster. Real Estate is a hyper-local industry and being able to tap into the knowledge and experience of a professional real estate agent can be very beneficial and save you from making costly mistakes. By obtaining the assistance of a trusted real estate agent, buyers are able to minimise their costs and efforts in the property search, while also improving their chances of navigating the legislative processes that come with real estate purchases. Always make sure that you work with professional estate agents that have the necessary qualifications, backing of a trusted company and a valid Fidelity Fund Certificate from the Estate Agency Affairs Board.
Step 6 - Find your ideal home
By ensuring that steps 1 to 5 are all taken care of, everything else is smooth sailing, where you can sit back and enjoy the ride without having to worry about the hiccups that could have come up along the way.
Limit the time your property transfer will take, step by step.
Contact one of our Meridian iAgents to help you prepare for your dreams to come home.
Author: Meridian Realty
