How to buy a home

Step 1: House hunting

• The first step is to decide what type of property you want, for example, a townhouse, a flat, a free standing house, etc.  All these different types of properties are governed by different rules – and it is important to know what these are before buying – and to understand your rights and obligations.

Step 2: Sign an offer to purchase

• Once you’ve decided on the property you would like to buy, and found the home of your dreams, you will need to complete an offer to purchase form or an agreement of sale.  This is a written agreement stating the terms and conditions under which you agree to buy the property.

Step 3: Apply for a home loan

• After the seller accepts your offer you will need to fill in a home loan application form and provide your bank with supporting documents, such as your payslip, 3 months’ bank statements and a valid copy of your ID. Ask your bank before you apply about the documents you need to bring as this will speed up the process.

Step 4: Credit checks/affordability

• Once your bank receives all the documents from you, they will undertake credit and affordability checks.   Your credit score will determine the interest charged and your monthly bond instalment.  

Step 5: You qualify….now what?

• When you have met all the credit requirements, your bank will do a property valuation to determine that the property you want to buy has enough value in it as security for the bond.

Step 6: Your home loan is granted!

• Your bank will let you know once the valuation is done and if it is approved, they will appoint a registration attorney to attend to the registration of your bond.

Once your home loan has been approved, all that’s left is to arrange to move into your new house and start making it your home!