First-time buyers should arm themselves with a good team made up of a conveyancing attorney, mortgage consultant, property inspector and an insurance consultant, says Meyer de Waal, director of MDW Inc.
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They will guide them and help prevent them from making common mistakes, some of which include:
• Presuming subsidies for first-time buyers are available to only a select few.
• Not checking the status of their credit profile before they apply for property finance.
• Thinking that if their full home loan is declined, it is the end of the home purchase journey. Buying a property is one of the biggest investments one can make so, if a buyer’s credit score is not the strongest, a bank might approve their home loan, however, not at the best interest rate.
“The ‘extra’ percentage on your interest rate can cost you thousands of rand as you repay your home loan over 20 years.”
De Waal adds: “Buyers who have their home loans declined should consider a Finance-Linked Individual Subsidy Programme (Flisp) subsidy to bridge the shortfall between the home loan approved and purchase price. “They could also discuss a ‘rent to own’ or an instalment sale transaction with the seller.”