First House: Your (8 Step) Buying Guide
Category Buying Advice
The number one thing first time home buyers should know is that it's not that difficult! It may seem overwhelming, but breaking down the steps of buying a house for the first time makes it easy. Look no further! You've found the complete 1st time home buyers guide including all the steps and tips you need to know. So, write down these headings and use them as your to-do list:
Step 1: Build Up Your Credit Score
Building up your credit score is important for getting your home loan approved. Your credit score tells the banks how much risk is involved in financing your home loan. So, improving it is essential. The best place to start is by paying off any outstanding debts, and establishing a reliable account payment history.
Step 2: Save for a Deposit Before Buying Your First Home
Saving up for a deposit is the best place for you to start if you're looking at purchasing your first home. Building up a lump sum of money in your savings account will help in two ways. Firstly, it will help you to practise proper budgeting skills. Secondly, it will improve your chances of being approved for a home loan.
Step 3: Get Prequalified for a Home Loan
Getting pre-approved for a home loan is a great way of figuring out what your actual budget is. It's vital to know how much you can afford to spend when buying your first home, and this is how you do it. Go to BetterBond's Pre-Approval Page and get started. That's it! A super easy item to cross off on your first time home buyer checklist.
Step 4: Partner Up with the Right Real Estate Agent
Choosing the right real estate agent is a crucial part of buying property for the first time. The right real estate agency will help guide you to the best value property for your money. Experienced real estate agents are also intimately familiar with their area and know how to help you find your perfect property. If you're in Cape Town, or looking to move to the Mother City, our agents are waiting to hear from you.
Step 5: Find The Perfect Area for Your First Home
Now for the really fun part! Decide on the area you'd like to invest in. What will it be like to commute from this area (if you're not working from home)? Do you currently have, or are you planning on having kids? These are the questions you've got to ask yourself, and our agents can help guide you.
Step 6: House Hunting for Your Perfect First Home
Partnering up with your real estate agent means that they'll help give you some suggestions, but that doesn't mean you shouldn't be on the lookout too! Browse their official website for listings, buy the weekly newspaper, and set up email notifications for properties in your price bracket. Go to viewings and get a feel for what it will be like to live there. And don't forget to have fun!
Step 7: Get a Home Loan
Having a deposit saved up, and being prequalified (see steps 2 & 3) will make this part of buying your first home a lot smoother. We recommend using a home loan comparison service who will approach multiple banks on your behalf. This will help to guarantee you get the capital needed and that paying the loan back is achievable.
Step 8: Get Moving into Your First Home
The first time buying a home is an exciting, challenging, and at times daunting process. But moving in will make it all worthwhile. So get moving! Pack those boxes, donate what you don't need and start fresh. And when you're ready to start thinking about upsizing, you'll be ready to take it on with confidence.
Bonus Tip for First Time Buying
Don't forget to budget for all of the other once-off expenses that come with buying your first home. Remember to budget for transfer costs, bond registration fees, and of course pizza for your friends who helped you unpack!
Author: Paul Wasson
