It’s official — adulting is hard! Big financial decisions are always daunting, and it doesn’t get much more significant than putting pen to paper on a bond for your first property. Because of the period of time you’ll be paying off on a house and how much of a financial investment it requires, it’s important to be well-informed and measured when making this decision. Don’t worry— we know it’s crazy and overwhelming, but we’re going to go through five points to keep in mind if you’re planning on putting pen to paper for a home any time soon.
Find a good Real Estate Agent
The admin necessary to purchase a house is considerable, so you want an estate agency that has all their ducks in a row to make the process as smooth as possible. As important as the agency is, the agent who will be assisting you is most important. It’s crucial that you find someone that’s not only willing to ensure they stick to the specifications you have about the house you want, but also someone who’s got expertise on the area you’re interested in, so that they can advise you as extensively as possible. There’s no such thing as too much information, so find someone who can provide as much as possible.
Organise your documents ahead of time
Like with any big “credit” purchase, you’re going to have to provide a slew of documentation to get the process going. Rather than supplying documents one by one as they may be requested, it might save some headaches to just get basics like copies of IDs, possibly marriage certificates (where applicable), and credit records together ahead of time. That way when you’ve chosen a place you’re interested in you’re not running around like a headless chicken trying to find the required documents.
Saving is Essential
As with any large-scale purchase on credit, you’re likely going to be putting a deposit down. Rather than trying to make do with the lowest allowable amount, it will decrease your repayments in the long run if you save for longer and put as much down as you can manage initially. Due to the repayment period, it’s a good idea to try and keep your monthly repayment as low as possible because that’s going to be your long-term expenditure. It’s better to wait a little longer to save more in the long run.
Consider what you need carefully
Because of the amount financial burden a house creates, it’s important to think carefully about what you need in a home, not necessarily just what you want. We’ve all got big ideas about what we think we’d like in a dream home, but some of them might just be good in theory and not necessarily in practice. Start off by making a list of features that are absolutely essential and work from there, it’s no use paying for things that seem great on paper but may just end up being unused space once you’ve moved in.
Take time to find the best loan
Lastly, and most importantly; the finance provider you’ll select and the particulars of your repayment. The devil is in the details, as the expression goes, and you’ll want to understand and be clear about details like the repayment period, the interest rate, and other particulars surrounding the contract. This is where the folks at Loan Compare can help you out: by finding the most competitive loan terms for from different providers, while also helping with some of the admin at the same time.
Purchasing home is a significant decision, and one that can have an impact on your financial future for a long time. It’s crucial not to rush or be too impatient to sign on the dotted line, but rather to be as objective and dispassionate as you can, it’ll pay off in the long run. Hopefully we’ve given you some helpful tips to make the home-buying process smoother!
Want to know more? Watch this video for an easy how-to guide on getting started with Loan Compare:
For more information and to get your home loan application started now visit loancompare.co.za. Interested in property news and home loan application tips? Don’t forget to say Hi to Loan Compare on Facebook.