Statistics from the Lightstone Property Report indicate that there is a high number of first time home buyers that enter the property market every year.
Buying a property is a very big decision that has an immediate and long-term effect on your personal financial budget. It requires proper planning for long term financial commitment.
What do first time home buyers need to know about buying a property and how long does the process take?
As a first time home buyer you must first obtain your credit bureau record.
This is important. If you are blacklisted, under debt review or with low scoring credit points you cannot be given credit. Once the applicant is aware of their credit worth, they can approach the financial institution of their choice for pre-approval of a home loan.
The mortgage is the most common way to buy a property on credit in South Africa.
There are other forms of financing a property such as Instalment Sale, Rent-to-Buy or buying cash. Chartwell offers home loans on both Instalment Sale and Rent-to-Own.
The period of the home loan repayment ranges between 20 years and 40 years. However it is always advisable to pay off your home loan as quickly as possible to avoid paying higher interest.
The process of buying a property is completed when the property is registered at the title deeds office.
This process takes a minimum period of three months. During that three months the applicant is required to maintain a health credit record.
Through the Chartwell home loan you can enjoy the full rights of ownership from day one. You don’t pay occupational rent as your first payment goes toward your loan.
TIPS for First-Time Home Buyers:
- Save money to put down deposit to reduce the monthly payment and interest.
- Always consider buying a property in a secured area such a complex or estate for safety.
- Buy a property in a new development to save money on attorney’s registration fees and conveyancer transfer fees.