Making an offer and applying for finance
You've found your dream home and neighbourhood, and you're getting ready to make an offer. Buying a home can be stressful, here are some useful tips when the time comes to make an offer and apply for finance.
Research property prices
Before you put in an offer, make sure you know the value of the property you're thinking of buying. There are some great tools available online - you can usually access the municipal valuations for free. There are also a host of paid-for tools which will give you information ranging from when the property was purchased, to how much it was purchased for, as well as the estimated market value.
Know when to walk away
Buying a property is a long-term commitment and it can be both an exciting and stressful time. It's a good idea to know at which point you're prepared to walk away from the negotiations before you make an offer. This will help to ensure that you don't over extend yourself financially or let your emotions cloud your judgement.
Don't underestimate the paperwork
There's a lot more paperwork involved than you may think, if you're a first time home buyer it's a good idea to ask the conveyancing attorney for a timing plan so that you are clear on what you need to provide and when so that you don't hold up the process.
Applying for a bond
Whether you're working through your bank or a bond originator, make sure to contact them in advance to get an idea of how much you qualify for. Here's a checklist of the things you need to get together before you apply for a home loan:
- Copy of your ID/passport.
- 3 month's bank statements
- 3 month's payslips
- Utility bill
- List of monthly expenses
Making an offer
Before you put in a written offer, talk to the estate agent and let them know how much you're thinking of offering, there's no harm in asking them to take the offer to the seller to see if they're interested. If they are, then put in a formal offer to purchase.
Happy house hunting!
Written by:Wesley Cloete
Take a look here for other articles from Santam that will give you further insight on what you need to know about buying a home.