Important checks for first-time home buyers
If you’re in the market for your first home, there are several things worth ticking off your checklist before you start seriously looking at – and falling in love with – properties. One of these is deciding which suburb you’d like to settle in. Here are three others that require serious consideration.
Check 1: Affordability
One thing you really don’t want to do when you’re house hunting is find a property that ticks all your boxes – size, location, features etc. – only to realise that it’s beyond your budget. So, before you approach agents in your chosen area and start booking viewings, work out what you can afford to repay without stretching your finances to the limit. You’ll find all the tools you need, including affordability and bond repayment calculators, here.
Check 2: Additional costs
Once you’ve worked out your budget, your next step is to factor in additional expenses like transfer duties to SARS, conveyancer fees, bond and registration costs etc. The estate agent you’re working with will be able to run you through the full list as well as fill you in on rates and taxes if you’re looking at buying a freehold property or levies if you’re thinking about going sectional title.
Check 3: Credit score
Your credit score is a three-digit number, calculated by the credit bureaus, that can affect your access to credit e.g. home loans, vehicle finance, etc. What’s more, it can also influence the interest rate at which you’ll be offered the loan – the higher your score, the better the rate you’re likely to receive.
Your credit score is influenced by several things, including how you’ve handled credit in the past and how much you currently owe. It is negatively impacted by missing credit card or store card payments, paying them late and accessing a high percentage of your available credit.
Before you apply for a home loan, contact one of the main credit bureaus to request your free annual credit report and assess your creditworthiness.
Thinking about buying in the Cape Town CBD?
On completion, Harbour Arch will epitomise the principles of new urban living, offering residents the opportunity to live, work, play, relax, and stay in a safe, convenient, enjoyable and sustainable community-focused environment. For more information, contact us today on 087 809 0000 or click here to get in touch with a sales consultant.