Home Loan advice for first time home buyers

If you’ve just decided to buy your first home, SA Home Loans is here to assist you through every step of this exciting venture. Purchasing a new house is one of the biggest financial investments you’ll ever make, and no doubt you’ll have many questions regarding the process. Most first time home buyers do!

If you’ve just decided to buy your first home, SA Home Loans is here to assist you through every step of this exciting venture. Purchasing a new house is one of the biggest financial investments you’ll ever make, and no doubt you’ll have many questions regarding the process. Most first time home buyers do!

We’re here to fill in the gaps by providing all the answers and valuable advice you’re looking for. Read on to discover important home buying tips for first-timers, and to learn more about the first time mortgages and new home loan solutions offered by SA Home Loans – South Africa’s first and largest specialist mortgage provider.

Are you ready to purchase your first home?

Before you set your sights on buying the home of your dreams, it is important to establish whether you are ready to make such a big, ongoing financial commitment – in other words, is your income stable and sufficient to support a first-time bond?

If you are secure in your job and earn a regular monthly salary, you’ll have a fairly good idea of whether or not you can afford to buy a home. However, if you are self-employed, your income may be unpredictable, making it more difficult to know for certain whether you are in a position to purchase. SA Home Loans’ experienced bond consultants will help you to verify your financial standing, and calculate how big a home loan you can afford and qualify for.

Also important to bear in mind are the costs and fees associated with purchasing your new home. You’ll need to have money saved to place a deposit on the home, and you’ll also have to consider moving costs, home-owners’ insurance and rates on your property. To ensure you can afford the purchase, it’s essential to calculate all your monthly expenses AND those involved in buying your first home. As a general rule, your bond repayments, together with taxes and property insurance, shouldn’t exceed 25% to 30% of your gross income. In fact, at SA Home Loans, as a responsible lender, we will not approve a loan that exceeds 30% of your joint gross monthly income. It’s also a good idea to try to pay off other debt you may have (such as personal loans or credit card debt) before applying for a home buyer mortgage.

Important factors to consider when buying your home

One of the most crucial factors you’ll need to consider when buying your first home is the type of house you need. While your first home may not be the mansion of your dreams, it is important to ensure that it meets all your current and medium-term needs. For example, a seaside bachelor flat may be an idyllic pad for a newlywed couple, but will it be a practical place in which to raise a family?

When purchasing a property, it is vital to consider your individual housing needs, as well as those of your family – or future family! Is the home centrally located, or at least within manageable distance of work, grocery stores, doctors, schools and pharmacies? Most importantly, is the area relatively safe and secure? Although you may get “more home” for your money in a less desirable part of your city or town, these may not be suitable areas for children to live and play in. The value may also not appreciate as it will in more sought-after areas.

Once you’ve decided which area you’d like to live in and have a rough idea of the type of home you want to buy, you’re ready to begin house-hunting. Although the process of finding a home is reputed to be a lengthy one, don’t be surprised if your ideal home takes only weeks to find.

Once you discover the home that’s right for you, it’s a good idea to snap it up and resist the urge to “shop around” for a bargain. When you find the property that’s priced right and perfect for you, buy it.

Useful tips for first time homebuyers

  • Take a digital camera with you when house-hunting. Having photographs in front of you will help you recall specific details of each home you see – which is particularly useful if you’re viewing up to six homes in a single day.
  • Write down key points about each home you see as you’re inspecting it. In particular, record its size, special features, design and other factors which may influence your decision.
  • Take note of the area and its surrounds. Is the house close to all amenities, or is it in a remote location? Would you be happy to live in that particular neighbourhood?
  • When you’ve narrowed down your options, ask to view the homes you like best a second time. This will help you to narrow down your options further.
  • Now that you’ve found your ideal home, all that remains is to close the deal – you’ll need a mortgage. In most cases the Seller’s estate agent will urge you to let them find a mortgage provider for you. Why – because they earn a handsome commission from the bank! But why not shop around then deal direct? Remember, this will be a long term relationship.

You can also make use of our mortgage calculators to discover how big a loan you could qualify for.

Home loan solutions for new or first time house buyers

SA Home Loans offers new and first time property buyers a range of mortgage options tailored to their specific needs. And we offer you the facility to change your initial option in the future.

Find out whether you qualify for a bond – right now!

Want to know whether you could qualify for a bond with SA Home Loans? Simply make use of our home loan repayment calculator to find out. Once you’ve established that you could potentially be eligible for a bond, getting it approved is easy. Simply apply online via our website or call our Sales team on 0860 2 4 6 8 10.

Alternatively, you could contact your nearest SA Home Loans branch to begin the bond application process. All you’ll need is your South African Identity Document and proof of your income. Once SA Home Loans has all the necessary documentation, we will be able to complete the approval process within 48 hours.

If you have any further queries, do not hesitate to consult one of our professional home loan consultants. You could also visit our Glossary page to gain further insight into first time home buyer bonds and new home loan products.