It’s hard to believe that 2018 is drawing to a close. If you’re like us, you’re probably already planning and setting goals for 2019. For those who would like to get their foot in the property market, 2019 looks like a good year to do so – the great thing is that you don’t need to wait until next year to get the ball rolling either! Below are five things that you can do this side of the year that may help you secure and buy your first home (or second) in the new year.
1. Know what budget you have
It may seem obvious, but you’ll be surprised at how many people don’t actually know how much they can realistically afford. We understand that for many this is an overwhelming first step to take, but it need not be. Start by looking at your monthly income and assets, and then deduct any debt you are paying off and monthly expenses to know how much you’re left with in a month to repay your bond. You can also use Rawson’s Bond Calculator to calculate how much you will pay off on a bond per month. It’s also important to factor in rates and taxes, and possible levies into your monthly expenses when looking to purchase a property – these can range anywhere between R150 to R5000, depending on the type of property and where it is located.
It’s also important to assess if you any savings that you can put down as a deposit? A sizable deposit can make all the difference when it gets to securing a bond and with monthly repayments for the bond.
Another aspect to consider is if you have enough funds to pay transfer fees – transfer fees are very often an additional cost that many buyers, especially first time buyers, don’t consider until they are too far down the line. You can check the estimated transfer duties by using Rawson’s Transfer Cost Calculator.
Once you have a better idea of what you can afford, you’ll be empowered to actually start the property hunt!
2. Get pre-approved
More than just knowing what you can afford, it’s also important to understand how much a bank or mortgage broker would actually lend you. One way of finding that out is by getting a pre-qualification certificate.
In short, it’s a free, no obligation certificate offered to buyers by mortgage originators and provides a deeper insight to how much you can afford. This certificate will firstly enable you to search for a property within your budget and, secondly, also put you in a better position when putting in an offer, as many sellers look favourably at offers from pre-qualified byers – as the seller knows that they’re not wasting their time with someone who doesn’t have the means to purchase the property. And as all the relevant paperwork has been submitted for your pre-qualification certificate, the bond application process will also be much quicker and far simpler.
Getting one of these certificates is really as simple as getting in touch with a qualified consultant from Rawson Finance, the mortgage origination arm of Rawson Properties. Click here to find and fill in your details, and a consultant will get in touch soonest.
Please note that for this free, no obligation certificate, you will be required to –amongst others – submit an expense sheet (provided by a mortgage origination consultant), bank statements and copy of your payslip.
3. Don’t make any big purchases
When it gets to purchasing a home, counting every little cent can really make a difference! When you’re applying for a home loan, the bank or mortgage lender will review your bank statements to make sure you have enough money to repay your loan – the less you spend, the better your bank balance will look and the more favourable you will look as a candidate.
So, avoid buying unnecessary and costly items, especially over the holiday season when spending can so easily happen. Also, avoid making any more credit or taking out any additional loans that could negatively impact your ask for a loan.
4. Ask for the right Christmas gift
If you’re part of a family that is into buying sizeable, expensive festive season gifts, ask them to rather give you the cash this year as a present. The extra cash could go towards your bulking up your deposit, covering transfer fees or helping with the actual move. Because: when buying a home, every cent counts!
5. Find a trustworthy agent
While you might only be looking to buy in the New Year, there’s no harm in looking for a great estate agent that will help you find a dream home within your budget. Ask friends and family for recommendations, as word of mouth is always a trusty source. While rapport is important with the agent that you choose, it’s also important to note that your agent should:
Show you properties within your budget,
Draw up your offer to present to the seller,
Assist in obtaining approval for financing,
Assist in negotiations, and
Synchronise all transactions and handle all after-sale administration.
Don’t forget that all estate agents in South Africa must be registered with the Estate Agency Affairs Board and must hold a valid fidelity fund certificate. Make sure you check this before you appoint an agent.
If you would like to see how a Rawson Agent can help you find your dream home, please get in touch with us by clicking here.