Market Review - Feb/March '23
If 2023 is your year of buying a home, let us help you
If 2023 is your year of buying a home, let us help youBuying a home is a huge financial and personal decision that’s going to shape what your life looks like for years. It’s where you’ll raise kids, celebrate special occasions and grow old with your loved one.
However, with all the commitments involved in purchasing a new home, there are a few steps you should take to prepare yourself and that’s where we can help. So, if your New Year’s resolution is to become a homeowner in 2023, here’s how to make it happen.
Do your research and figure out your financials
One of your top priorities as a potential homebuyer should be to do a lot of research. In most cases purchasing a home will likely be the most expensive decision you’ll ever make in your life. It’ll put you in the best financial position to pick your dream home in your preferred area while also paying close attention to your financial standing before making the ultimate commitment to make the purchase.
Find out the types of properties that appeal to you and the suburbs where you would like to live before going any further. The most important consideration should also be establishing your budget as well as your non-negotiables.
Get pre-approved for your mortgage
Mortgage pre-approval is an important part of the home-buying process that you shouldn’t skip in. Getting preapproved can help you understand how much you can borrow. During the process, the bank pulls your credit and checks your income, debts, and assets. If everything checks out, the bank gives you a letter that details how much you can borrow and your estimated interest rate. However, you can borrow less than the amount you qualify for, based on what you’re comfortable with.
Getting pre-approval also accelerates the mortgage lending process. If you find a home you love and need a loan quickly to purchase it before another prospective homebuyer, being pre-approved will let you get your funding faster to secure the purchase. Regardless, a pre-approval letter shows you have earnest money to put toward a property and will help in your house hunting in any real estate market.
At FNB, we can help with an UpFront Bond which is a pre-approval certificate that shows the amount of finance, that has been approved in principle by the Bank, which the customer qualifies for. The pre-approval certificate is also an effective tool to help you set your budget as well as easily negotiate pricing with estate agents and the like. The Upfront Bond will be valid for a period of 12 weeks.
Know when it is a good time to buy your home
A “buyer’s market,” is always the best time to make a property purchase. This typically indicates that homebuyers have more favorable market pressure than home sellers and that there are more houses available than there are buyers, giving you more options.
Due to the strong demand and great supply, sellers must meet buyers in the
middle and engage in more negotiation to
Together, these elements suggest that property prices should be well below average, making it the best time for you to buy.
For more information, please contact FNB Home loans on:
061- 299 2222
061- 299 2523/4/1
DOCUMENTATION FOR A BUILDING LOAN/ADDITIONAL BOND
Approved building plans
Bill of quantities
FNB approves a home loan when the monthly repayment does not exceed 30% of a single or joint income*. This ensures that you have sufficient disposable income each month for other expenses. The repayment term of the loan is tailored around your age and repayment capabilities. * Note: In terms of the Banking Code of Conduct, the Bank must ensure that clients are only granted a loan they can afford to repay.