Most of the mistakes made when purchasing a property often result in problems that are hard to rectify. To ensure that you don’t have to life with the consequences of your own bad judgement, look out for these common mistakes when purchasing property: 

Mistake #1: Grabbing the First Loan You are Offered
Shop around until you’ve found the best deal and talk to professionals, friends and/or real estate agent for referrals. Make sure you get all your quotes on the same day at around the same time, as interest rates might differ from day to day.

Mistake #2: Getting the Location Wrong
Location is everything and you don’t want to go wrong here. Once again, consider all your needs such as the area’s proximity to your place of work, public transport, schools etc. and make sure you pick the area for the right reasons. Also look at future development in the area to ensure that you investment is secure.

Mistake #3: Not Using the Services of a Real Estate Agent
To refuse the services of an experienced agent is a mistake that a lot of buyers make. They forget that an agent is used to handling transactions and negotiations and has handy knowledge of property prices in the area. Good agents have the ability to keep things in perspective and help you to be rational when things get too stressful.

 Mistake #4: Getting the Price Wrong
Your agent will assist you in setting the right price by among other things, comparing it to the house prices in the area. This once again stresses the importance of working with an agent.

Mistake #5: Buying Beyond Your Limits
You will always find buyers purchasing a property that leaves them without any disposable income, as they are unable to deal with the monthly down payment as well as other costs like insurance, property tax etc. Avoid this common mistake by carefully calculating how much home you can afford. Choose a maximum price and stick to it.

(Affordability Calculator)

Mistake #6: Being Overhasty
There are a lot of emotions involved in purchasing a home, which can lead to buyers jumping into a deal prematurely. Be prepared to spend a lot of time house hunting to avoid disappointment.

 Mistake #7: Passing on the Inspection
As a buyer you might feel that you are qualified enough to sniff out any problems. Unfortunately this can cost you dearly. Be smart and get a qualified property inspector to thoroughly scrutinise the property before you buy it.

Mistake #8: Over Spending Before the Deal is Done
Taking on debt before purchasing a property might mean that you no longer qualify for the initial bond. Rather wait till after the contract is signed before you start buying new furniture and other essentials for the new home.
                       
Mistake #9: Not Reading the Contract
Property contracts can be confusing and hard to grasp, but it is essential that you know what you are committing yourself to. Make sure you understand all terms and conditions and ask for advice if you are unsure of anything. Never just sign on the dotted line.
 
Mistake #10: Not Budgeting for Closing Costs
Remember to budget for closing cost (attorney fees, recording fees, survey fees, brokerage commission etc.) and remember that you will always have hidden cost, whether it is interest rate hikes or personal financial requirements.

CONTACT US

Speak to a home loan consultant about financing your new property or reviewing your existing mortgage. We are able to assist in lowering your bond repayments and securing attorney discounts.

Complete this short form online
Call us on 011.327.4489
Email: morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za

100% Home Loans in South Africa

There are so many conflicting reports these days as to which banks offer 100% home loans and which don’t.

Let me clear that up for you. Just keep in mind that sometimes it depends if you also have your personal bank account at that bank or not.

Absa Home Loans - On home loans of under R1.5 million, maximum loan of up to 90% if the applicant with the biggest salary banks there. Maximum 70% if you don’t bank there.

If you earn under R15 000 per month (joint or single income) you can qualify for up to 110% loan – this means no deposit, PLUS all your attorney fees are covered.

Standard bank Home Loans – On home loans of under R2.5 mil, a maximum loan of up to 90% – Standard Bank have advertised that they offer 100% home loans if you work directly with them and not through an originator, but I have yet to hear of more than 1 client confirming that they got a 100% loan from Std Bank.

Under R15 000 income you can qualify for up to 104%, which is also the full purchase price plus costs.

FNB Home Loans – On home loans of under R2 mil up to 100% loans. If your income is under R15 000 you can also qualify for a up to 104% home loan

Nedbank Home Loans – up to 100% home loans if the purchase price is under R3 mil.

SA Home Loans – 95% home loans for purchases.

They also have a new offering of a 90% home loan with interest only for the first 3 years. This means better house – for the same instalment. So you get the home you really want. With EDGE, clients pay the lowest possible instalment – the interest only – for the first 3 years, then revert to a standard loan for a further 20 year period. This makes it ideal for clients who want to buy up now, knowing their income will grow to match their repayments.
 

CONTACT US

Speak to a home loan consultant about financing your new property or reviewing your existing mortgage. We are able to assist in lowering your bond repayments and securing attorney discounts.

Complete this short form online
Call us on 011.327.4489
Email: morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za