This guide to buying a house covers five key steps: determining affordability, checking your credit score, finding your ideal home, signing an offer to purchase (OTP), and applying for a home loan. Following this process of buying a house in order, rather than house-hunting before your finances are confirmed, is the most reliable way to move from decision to keys-in-hand without delays. A Central Developments sales agent can guide you through each step, whichever development you're considering.
Buying your first home is exciting, and it can also feel daunting if you don't know where to start. This step by step guide to buying a house breaks the process of buying a house down into five manageable stages, from working out what you can afford to signing the final loan agreement. Whether you're a first-time buyer or looking at your next investment, understanding these steps to buying a house upfront makes the entire experience far less stressful.
The first of the steps to buying a house is deciding to buy, the second is working out exactly how much you can afford to spend. Start by reviewing your current debts, monthly expenses, and income to calculate a realistic home loan repayment. If you're unsure where to begin, a trained Central Developments sales agent can help you calculate affordability before you start house-hunting.
Learn about what other costs to consider in our Monthly Costs of Owning a House post.
Once you know what you can afford, it's time to assess your credit. Your credit score plays a major role in both the loan amount and interest rate you'll qualify for; it tells banks how much of a risk you represent. The better your credit score, the stronger your chances of qualifying for a 100% home loan at a lower interest rate. If you don't know how to check your credit score, a sales agent can run the check for you, typically requiring only your full name, ID number, home address, and cell phone number.
With your finances and credit assessed, the next step in this guide to buying a house is finding your dream home. Central Developments' portfolio spans multiple estates across Gauteng and the Western Cape, so there's a good chance you'll find a home that fits your needs and budget. Browse available properties and book a viewing appointment with a sales agent to get started.
Once you've found the right house and have your finances in place, it's time for the offer to purchase (OTP), signed with your sales agent, along with your FICA and supporting documents. The OTP is a legal agreement between you and Central Developments Property Group (the seller) that sets out the terms and conditions of the sale.
After the sale agreement is signed, your sales agent takes over, submitting your contract, FICA, and supporting documents to major banks for a bond application on your behalf. They'll then negotiate for the best available bond offer to suit your needs. First-time buyers often have an easier path to a 100% home loan than those purchasing a second, third, or fourth property.
Understanding this process of buying a house (affordability, credit, house-hunting, the OTP, and the home loan application) puts you in control from day one. Find a property with Central Developments today to learn more about available properties and investment opportunities.
What happens when you’ve moved in? Find out in our Complete First-Time Home Buyer's Guide.
The main steps to buying a house in South Africa are: determining affordability, checking your credit score, finding a home, signing an offer to purchase (OTP), and applying for a home loan through your sales agent.
Affordability is calculated by reviewing your current debts, monthly expenses, and income against a realistic home loan repayment. A sales agent can help calculate this for you before you start house-hunting.
Yes. Your credit score determines the loan amount and interest rate you qualify for. A stronger credit score improves your chances of a 100% home loan at a lower interest rate.
An offer to purchase is a legal agreement between the buyer and seller that sets out the terms and conditions of a property sale. It's signed once a buyer has chosen a home and confirmed their finances.
Yes. First-time buyers are often able to qualify for a 100% home loan more easily than buyers purchasing a second, third, or subsequent property.
