Taking the stress out of buying your first property

2021 is proving to be a fantastic time to buy your first home. The rock-bottom interest rate that came into effect in mid-2020 is holding steady and the appeal of owning one's own property has never been stronger. Buying your first home can seem intimidating, but help is at hand and if you follow a few simple strategies, getting the keys to your very own home will be simpler than you may have thought.

Save up a deposit 

In a nutshell, the less money you have to borrow from the bank, the lower your monthly payments will be. Also, your offer to purchase will be more attractive to property sellers if they know that you aren't relying on the bank to give you a loan for 100% of their asking price. It's also important to understand that there are expenses associated with buying a home that will not be covered by your home loan. If you are buying a property that costs more than R1 000 000, you will need to pay transfer duties, which will not be covered by your home loan. Regardless of the value of the property you are buying, you will also need to pay conveyancing costs. 

Use a bond originator

When it's time to apply for a home loan, a bond originator is going to save you huge amounts of time and stress. By being a liaison between you and the banks, your Ooba bond originator will work to get you the best possible terms and the lowest possible interest rate. A bond originator will apply for finance on your behalf, approaching all the banks and taking advantage of their strong relationships with the banks to get your home loan approved. Using a bond originator also means you only need to fill in the paper work once. If you were applying personally to all the banks, you would be filling in a set of detailed paperwork for every bank.

Get preapproved for a home loan

Before you go looking for your dream home, you need to know how much you can spend. By getting prequalified for a bond, you'll have a very specific idea of what your price ceiling is. Getting prequalified is simple, and you can do it yourself on Ooba's website. Or, if you prefer, simply fill in your contact details on the website and one of Ooba's experts will call you back and go through the prequalification process with you. Having a clear indication of what you can afford will help you think practically about which home features are on your "must" list and which are on your "nice to have, but not essential" list. 

The other advantage of being prequalified for a home loan is that it will show the seller of your dream home that you are serious about wanting to buy. This makes it more likely for them to accept your offer, particularly if they have received multiple offers.

Work with a realtor who you like and trust

Finding an estate agent who you are comfortable with is imperative, as he or she is the one who will be guiding through the home-buying process and answering all your questions along the way. The first step - before you even meet with a real estate agent - is to ensure that he or she is registered with the Estate Agency Affairs Board. 

Buying your first property should be an exciting experience - not a daunting one. Contact the team from Jawitz Properties and let us guide you through the process from the day you decide to start looking to the day we give you the keys to your new home.