The 7 Best Property Buying Tips

The purchase of property is not an easy process, but can be made much easier if you follow the 7 property buying tips mentioned below. Being well informed can ensure that you have a satisfying home buying experience. To make the property buying experience easier, follow these simple steps:

1. Determine how much you are able to afford

Your income, current monthly expenses, and credit rating play crucial factors in determining how much you can afford in the purchase of a new home. The amount you have for a down payment, the interest rate and the length of the loan will have significant bearing on your monthly mortgage payment. Be realistic with yourself and only get into a financial situation that you are comfortable with.

2. Securing a loan

Your property buying experience will be made easier if you get a pre-approved loan. In South Africa, over 60% of loans are made through bond originators. Contact a bond originator or your local bank loan consultant and determine how much of a loan you would qualify for. Make sure that you shop around for the best deal, compare the various mortgage option plans and don’t forget to negotiate with the lender.

3. Secure the services of a professional real estate agent

Begin by contacting a professional real estate agent who works in the area you want to look at. An agent will help you throughout the entire property buying process. After he gets an idea of what type of property you are looking for and your financial situation, he will be able to direct you to the properties that are right for you. Find out from

4. Start looking around for property

Always consider the location of the property you want to purchase. Determine where you want to live before looking around for properties. Let your real estate agent know exactly what your requirements are. Do you need to be near a school, grocery stores, doctors, etc… Make a wish list of the features your property should have. Be aware of the needs of your family, such as the number of bedrooms, garage, yard, and security issues.

5. Submit an offer contingent on home inspection

After you have found the property you wish to purchase, the next step is to make an offer. Make sure to make the offer contingent on the property passing a home inspection. Consult with your agent and let him know what you would like to pay and what is the most you are willing to spend on the property. He will assist you in negotiating with the seller to get the best deal for you. Be sure that you are serious about purchasing when making an offer, as in some areas it becomes a legal contract if the seller accepts your offer.

6. Shop around for homeowners insurance

All lenders require that you have a homeowner’s insurance policy before the signing of the mortgage contract. There are many types of coverage’s available so get informed and only purchase the policy that meets your needs.

7. Sign documents at closing

There are many fees and expenses associated with closing costs and it is extremely important that the buyer and seller determine who will pay for each of these closing costs. Other items to be reviewed are how the mortgage will be processed, the title company to be used and escrow services needed.