Buying your first home can be both thrilling and scary and getting your first mortgage loan  is usually part of the process. Obtaining a mortgage loan can be confusing and stressful for many people, especially if this is a new experience. Without a doubt your home, even if it’s a starter home, is and will be, one of the biggest investments  of your life. With that in mind it is important to take the mortgage process slowly and not rush or skip important steps.

One of the very first steps necessary in the mortgage process is to decide if you want to deal directly with a bank  or to make use of the services of a mortgage originator. A Mortgage originator  is supposed to find the mortgage loan that is most suitable to the needs of the borrower and also take care of the many administrative and form filling tasks involved in the mortgage loan application process. That is what you are paying them to do , mortgage originators earn a commission from the bank. Be wary of mortgage originators who charge a fee in addition to their commission , this practice is unethical.

First time home buyers typically used to be able to qualify for a mortgage loan of  108% of the purchase price – this assists in covering the costs of registration and transfer.Since the credit crisis most South African banks imposed stricter lending criteria and required buyers to be able to provide a deposit. Recently banks have started relaxing their lending criteria and in certain cases are providing 100% mortgage loans.

It is also important that you assess your financial situation to determine the affordability of the transaction. You can the free mortgage calculators available on this website to help you calculate out what your monthly payments might look like. It is important to conduct a what-if analysis taking into account interest rate movement to see what the situation will be should rates move up. You should also ask a lot of questions about anything that you may not fully understand. And research as much as using websites like www.mortgagepluscc.co.za to assist you in making informed choices.

You must also find out about any fees that may be charged to you. Some fees, quite frankly, can be avoided by the educated shopper so shop around. Buying a home is similar to buying anything else, only on a much larger scale. You always want to get the best deal possible and remember to never, ever sign anything that you don’t fully understand.

It is also important that you fully understand your rights in terms of the new National Credit Act .

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

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. Mortgage Plus 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 (this requires a minimum of 10% of the home’s value), and you’ll also have to consider moving costs, home-owners’ insurance and rates on your property. To ensure that 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% percent of your gross income. In fact, at Mortgage Plus, as a responsible bond originator, we will not approve a loan that exceeds 30 per cent 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.

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