The main ins and outs of buying a property – what you need to know
Just think about it… you’re driving along a road and you spot a For Sale sign outside a property, and maybe there is also an On Show sign next to it. If it is the right area and you are interested in taking a closer look, you pull over, stop and go inside to see what the place is like. Who knows, this might be exactly the kind of property you’ve been waiting for! Your dream home might be calling you!
However, while many people take the opportunity of visiting properties that are on show, there is certainly a vast lack of awareness and understanding of the incredible amount of advice and general assistance to be gained from the services of an experienced, professional estate agent. Let’s take a look at some of the issues where expert advice is absolutely essential when it comes to buying a home, no matter what your age, status or requirements might be, and regardless of whether you’re looking to buy an apartment, a unit in a secure complex, or a house.
Of course you need to consider whether the property would suit your particular lifestyle in terms of size, accommodation facilities, outdoor facilities, security, transportation availability, etc. And of course, as the old saying goes, location, location, location is everything… You need to be sure that the prospective property is situated in an area that will guarantee you a healthy return as a long-term financial investment.
After all, it goes without saying that property is generally one of the biggest investments you are likely to make in your lifetime.
Tra-la-la! This is where the expert advice of an experienced property professional comes in to stand you in good stead. Most of us have been aware of the negative effects due to the difficult economic climate, and many prospective home buyers have experienced some difficulty in trying to secure a home loan. However, there are several practical pre-purchase tips to assist potential home buyers with the process of applying for a bond, and you need look no further than your property professional to guide you with useful advice and hands-on assistance on every aspect of the process.
First things first… do your homework
Before getting down to the business of making an offer on any kind of residential home, regardless of whether it is an apartment, a freestanding unit or a house, It is important to establish how much you would qualify for in terms of a home loan.
There are definite financial requirements in terms of legislation, whereby the National Credit Act requires banks to assess your net disposable income when determining what loan amount they will offer you. And, yes, it is true that banks do sometimes limit lending to 30% of the applicant’s gross income in cases where the net disposable income value is higher. Your property professional will help you to get a clear understanding of how much home loan finance you are able to qualify for. He or she will assist with calculating your net disposable income (i.e. your net income after deducting all expenses). In fact, you can also work this out for yourself, by referring to our Net Disposable Income Calculator on www.multinet.co.za or ask your estate agent to put you in touch with a MultiNET Home Loans specialist who will assess your financial affordability and take the time to deal with any other related queries you might have. Accurate information is an absolutely key essential to give you the necessary peace of mind.
Your credit rating is important
It is important to know what your credit rating is in order to qualify for a home loan, because you will be assessed by the banks in terms of your credit history and credit rating. If there is any history of slow payment of accounts, arrear accounts or judgements listed against your name, these may very well reflect negatively against your credit rating. As mentioned above, your estate agent can put you in touch with a MultiNET Home Loans specialist who is able to offer you an up-front free credit report service. For more information, contact MultiNET Home Loans on 0861 54 54 44.
What about putting down a deposit?
Your home loans specialist will advise you in this regard, but according to research it is clear that there is a greater chance of securing approval for a home loan if the home buyer is willing and able to put down a reasonable deposit against the bond required. Furthermore, such a deposit could also result in the home buyer getting a more favourable bond rate, and of course this would mean a considerable saving in terms of interest rate charges over the full term of the home loan. Another thing to consider is that, on making the offer to purchase the property, there is a strong likelihood of the seller accepting a lower purchase offer if you are able to make a reasonable deposit. Why, you ask? Simply for the matter of securing a successful sale, because the seller would have a greater certainty that the buyer’s home loan would be approved and that the sale would go through without any unnecessary delays.
Expertise and experience equals efficiency
There are no two ways about this. When it comes to handling all the financial requirements and processes, be sure to use an experienced Bond Originator to process your home loan application.
Shaun Rademeyer, MultiNET CEO, says, “When buying a home you need to ensure that you have the best possible chance of getting your home loan approved smoothly, quickly and efficiently. Using an experienced originator such as MultiNET Home Loans gives you the assurance that your bond will be approved in the shortest possible time. No hassles and no hold-ups. Our Home Loans specialists have extensive expertise regarding the specific requirements of every financial institution, and they can submit applications to all major financial institutions on your behalf. Just think, you deal with only one person throughout the entire process, which means that MultiNET Home Loans minimises time spent and maximises efficient outcomes. We advise you on every aspect, and we act on your behalf, enabling you to secure your home loan without all the additional concerns and unnecessary stress.”
Whichever way you look at it, you can be sure that MultiNET Home Loans is your best chance of securing your dream home as efficiently and as effortlessly as possible. Buying your own home is one of the biggest investments you will make in your lifetime, and we wish you everything of the best towards building a bright future for yourself and your loved ones.