Buying Your First Home: Important Questions You Need to Ask Yourself

first time buyers

Life is made up of firsts: your first tooth, your first day of school, your first kiss and, eventually, your first home. Making the decision to purchase your first house is a big one and whilst it signals an exciting new chapter, it can also be rather terrifying. For first-time buyers, you’re entering unchartered territory, so it’s important that you fully understand all that comes with owning your own home. Ask yourself the following crucial questions to make sure you’re completely prepared for your maiden purchase and all that comes with it.

Can I really afford a new home?

Unless you’re one of very few people who can afford to pay for a new home with a once off payment, you’ll have to rely on a home loan. Paying off a bond is an ongoing financial commitment, so it’s important that you’re in a secure monetary position to support it. You’ll need to be employed and be earning sufficiently to cover the cost of monthly bond repayments along with all your other usual bills.

Have I considered the additional costs involved?

Buying your first home is not about paying a lump sum and simply moving in. There are additional costs you need to consider, such as transfer fees, registration, moving costs, rates and the deposit you’ll need to put down initially. People often forget that mortgage protection and home owner’s insurance are also required. You need to take these into account when deciding whether or not you can afford to buy a house.

What is the loan amount I can realistically apply for?

Having included all the variables, if you can now say with confidence that affording a new home is a possibility, then you’ll need to work out exactly how big a loan you can apply for. During the loan application process, numerous factors are taken into account when calculating the loan amount, such as your credit history, monthly household income as well as your current debts, liabilities and assets. BetterBond’s Mortgage Calculator can assist you in working out the loan amount for which you are eligible.

Have I pre-qualified for a loan?

You’ve done the research and worked through the numbers, and now you have a loan figure in mind. Before you can start looking for your dream home, you need to ensure that you have pre-qualifiedfor a loan. This is where BetterBond steps in. These experts in the field will navigate the entire home loan application process for you, saving you time, effort and of course, stress. Strong relationships with all the leading banks together with a deep understanding of what is required for a successful loan application means that your chance of not only getting a bond, but also one at the best possible interest rate, is high. The best part? You get all this experience and expertise free of charge.

What kind of home am I looking for, does it suit my budget and am I willing to live in it for several years?

Whilst you may dream of a five bedroomed mansion with a walk-in cupboard and swimming pool, your budget may not allow for such a home…right now. You need to look for a home within your means but also one that will meet your needs. For instance, if you plan on starting a family soon, it’s probably not in your best interest to buy a one bedroom flat. You need to consider your current and mid-term needs, as well as acknowledging that you’ll more than likely be living in this home for the next few years. Lastly, when searching for a home, remember to think about its location. Consider whether the area is safe or not, and whether it’s close to local amenities. Your needs should dictate the kind of house and area in which you choose to live.

So you’ve found your perfect first home and now you’re holding thumbs that your home loan is improved. With some luck it’ll take five short working days, and provided your offer is accepted, you can then really start dreaming about how you’re going to make that house your home.

 

Featured image credit: http://www.buy-cincinnati-homes.com/

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About BetterLife Home Loans

Since 2003 BetterLife Home Loans has been SA’s No.1 Bond Originator, handling the entire home loan application process on your behalf – free of charge! Our aim is still to source the best interest rate for you by submitting your home loan application to all the major banks. There is no easier way to apply for a Bond or Home Loan in South Africa!

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