Buying your first house can be a very daunting task, filled with a lot of fear and a lack of information and understanding.
Fear of committing to long-term debt; fear of market volatility, like interest rate hikes (see last week’s article on the latest interest rate hike https://www.thebrief.com.na/index.php/component/k2/item/1287-here-s-how-the-latest-interest-rate-increase-affects-your-monthly-home-loan-repayments ) that can affect the ongoing affordability of a home loan.
There’s also the fear of maintenance costs, which fall on the owner’s shoulders and are something that a tenant never has to contend with. There is also the fear of the loss in value of a property, driven by an economic market that is unpredictable.
The home buying process is undoubtedly one of the most nerve-racking experiences one can have. Pre-approvals, home loans and credit scores will have you frazzled and don’t forget about the post-sale expenses such as furniture, water and electricity, rates and taxes, security and all the other costs associated with home ownership.
Remember forewarned is forearmed – having a clear plan in place and an understanding of the home buying process will ensure that you avoid costly mistakes and successfully purchase your first home with ease.
Here are some steps you can follow:
1. Start by ascertaining your affordability, this can be done by applying for a pre-approval from your bank/s of choice. I’d suggest obtaining from at least 2 -3 banks and trying to negotiate for a prime -1 maybe even -2.
2. Then proceed to look around for your preferred locations. Factor in amenities that you require in proximity, such as schools, shopping centres, your work etc
3. Once you have an idea of the above, then you may commence your search. Look in newspapers, real estate agent accounts on different social media platforms and property websites such as www.chili.com.na .
4. When you have identified the property you want and can afford, contact the agent listed on the property and try to negotiate the best price. Confirm if the selling price includes or excludes costs and ask the agent to give you a breakdown of all the costs: Bond costs, Transfer costs, and bank initiation costs. These are confirmed by the lawyers however can be calculated using an online cost calculator (I use https://www.wkh-law.com/page/bond-calculator ) . Have them draw up an OTP, “Offer-to-Purchase” and then submit it to the bank for home loan approval.
5. If the bank informs you that your application has been approved for a home loan, that’s when the real work begins that involves mountains of documents to be completed. One also needs to:
– Pick a Transfer lawyer
– Obtain a life cover that is the same or more than the amount of the bond
– Obtain short-term insurance for the property
- Once the property is transferred to you and you obtain a copy of the title deed, remember to open a rates and taxes account at the municipality.
In a nutshell, there are a lot of unknown variables when buying a home for the first time. “Buyers should never feel embarrassed or shy to ask questions. The home buying process is not taught in school and most homeowners only learn these things through first-hand experience. Buyers should always feel comfortable speaking to the professionals as they are there to help make the whole process easier,”
For enquiries Text, Call or Email #ʏᴏᴜʀʜᴏᴍᴇɢɪʀʟ Justina Hamupembe
Cell +264812726001
Email justina@chili.com.na
Website: www.chili.com.na
