Turn your dream home into a reality this year!
Getting ready to buy your first house can be daunting. Credit scores, down payments, and bond approvals are all on your mind. Here’s a guide to help you get ready to make one of the biggest purchases of your life.
Buying your first home can be one of the most exhilarating — and stressful — moments of your life. But armed with the right information, you can shop for a house, apply for a home loan, and close the deal with confidence.
Step 1: Determine how much you can afford
The first thing to do before buying a home is to make sure it’s the right time to do so. Do you have enough household income to afford the home you want to buy? Is the home in a good area for schools and shops etc. Do you have a clear credit score? and will you qualify for a home loan?
Check your credit score here: https://www.transunion.co.za/ or https://www.clearscore.com/za/
Step 2: Prepare your finances for the bond application process
The last thing you want to do is find your dream home only to discover you’re not financially qualified to buy it. To guarantee you’re financially ready to buy your first home, you’ll need good credit, cash to close, and a verifiable income.
Finally, if you’re close to putting an offer on a home, begin to collect documents that you’ll need to verify your finances on the bond application: pay slips, bank statements, proof of residence, loan application forms and, if you have freelance or self-employment income, copies of your last two tax returns.
To determine how much money you need please click our bond calculator to see if you qualify for a home loan. Trustgro Bond Calculator
Step 3: Frequently asked questions
Ask all the right questions about the house you want to buy.
FAQ’s
1: What are the sizes of the houses and how much do they cost?
The sizes vary from 40m2 to 120m2. Please go to the gallery to view the different options available.
2: Amount of deposit payable?
No deposit payable should you qualify for a 100% housing loan.
3: Will I be liable for any additional cash payments?
No. Trustgro pays for all local authority fees (plan approval, water, electricity and consumer deposits and connection fees).
4: What is the amount of the housing loan that I qualify for?
The banks impose a 30% limit of your monthly gross salary as the maximum monthly repayment. Please refer to the bond calculator for assistance.
5: What would my monthly instalment be?
Go to the bond calculator for an easy and convenient tool to help you calculate your monthly instalment.
6: What is the term of the loan?
Typically, 20 years. It is also possible to obtain loans for 30 years. The banks may restrict you to 10 years, should you be older than 55 years.
7: Could my status with a credit bureau, for example TransUnion, influence my application?
Yes. All outstanding debt and judgments should be settled, and a clean ITC record obtained before the bank will grant a housing loan.
8: Do I start repaying my loan upon registration of the bond?
No, Trustgro bears the accrued interest during the construction period. You will only start paying once you take occupation of the property.
9: How am I protected by the National Home Builders Registration Council (NHBRC)?
Your house will be enrolled with the NHBRC. This will entitle you to apply to them for assistance to certify a major structural defect in certain circumstances.
10: Should I obtain insurance to cover my bond/housing loan?
It is advisable to do so-in the event of your death; your house will be fully paid for, enabling your family to remain in the house. They will merely have to maintain payments for electricity, water, and rates.
11: How long before I can move in?
You should typically allow 4 months from the time of registration of your bond. Delays in obtaining Council approval for plans, water and electricity connections could however add to this period.