A guide to buying your first house
Buying a home for the first time is an exciting and life-changing decision. It's a significant investment that requires careful consideration and planning. With so many factors to take into account, it can be overwhelming to navigate the process alone.
However, with the right guidance and resources, you can make informed decisions and unlock the door to your dreams with the perfect home that meets your needs and fits your lifestyle.
Firstly, use our step-by-step checklist to simplify the process.
Now, consider these 4 questions before buying your home:
Can I afford a new house?
Buying a new house is an exciting prospect, but a new home also comes with a significant financial investment, and taking on too much debt can lead to financial stress.
To avoid taking on more debt than you can handle, consider your income, expenses and debt-to-income ratio. You should also try to save up for a deposit. However, you should also be aware of the additional costs that come with buying a house, such as transfer duties, moving costs, home inspection and lawyer’s fees.
Use our home loan affordability calculator to estimate your bond amount and what the repayments would be.
How do I find my dream house?
Once you’ve determined the potential size of your bond and how much you can afford to pay towards your home loan each month, you can start looking for a home within your budget. However, before starting the house-hunting process, there are a few factors you need to consider when looking at properties:
- Location: The location of your home is crucial as it affects your daily routine, commute time and access to amenities, such as schools, hospitals and shopping centres. It will also affect the price as its proximity to amenities or transport can make it more desirable and more expensive.
- Size and layout: Consider the size and layout of the house. Does it have enough bedrooms and bathrooms for your family? Is the living space adequate for your needs?
- Condition of the property: Check the condition of the property, including the roof, plumbing, electrical system and foundation. This will help you avoid costly repairs in the future. Consider getting a professional property inspection to ensure the property is structurally sound and in good condition.
- Resale value: Consider the resale value of the property. Even if you plan to live in the house for a long time, it's important to choose a property that will hold its value over time.
A good real estate agent can also help you navigate the home-buying process and find properties that meet your criteria.
How do I start the house-buying process?
Once you have found the house that meets your requirements best, the next step is to get a pre-approved home loan, which is an indicator (not a guarantee) of what the bank will lend you and something you’ll need to make an offer to the seller.
Making an offer is the next step in the process. While some sellers might accept your offer right away, negotiations often come into play. Be prepared to present a compelling case, highlighting the strengths of your offer and demonstrating your genuine interest in the property.
To speed up the process, you’ll need to prepare all the required documents to apply for a home loan; you can find the list in our step-by-step checklist above. Standard documents are necessary, but depending on your lender and purchasing method, you may need additional documentation.
See how much you qualify for with pre-approval from Standard Bank.
How do I register the house in my name?
Once you’ve secured the offer and addressed any pre-inspection findings, it’s time to finalise the loan. Normally, the bank will formally grant the loan and instruct the bond attorney to register the bond.
When taking ownership of your new home, it’s also important to understand the legal aspects of registering your bond and transferring the property into your name. There are 3 attorneys involved in this process:
- Transfer attorney (selected by the seller): Handles the transfer of the property
- Cancellation attorney (selected by the seller’s bank): Cancels the seller’s existing bond
- Bond attorney (selected by the buyer’s bank): Registers the new bond in the name of the buyer
Note: most mortgage lenders require you to have homeowners’ insurance to protect your home against accidents and potential risks. Having insurance for your new home ensures that you are prepared for the unexpected and can recover financially should something happen, allowing you to enjoy your new home with confidence.
Disclaimer: This article is solely intended for information. It does not constitute financial, tax or investment advice or recommendation. Please speak to a financial advisor or registered financial professional before making any financial decision(s).
Standard Bank, its subsidiaries or holding company, or any subsidiary of the holding company and all of its subsidiaries make no warranties or representations (implied or otherwise) as to the accuracy, completeness or fitness for purpose of the information provided in this article or that it is free from errors or omissions.
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