Chapter One: Buying a house checklist
Your step-by-step checklist to guide you through the major home buying milestones. Use these steps to prepare before jumping in.
Buying a house checklist
Your step-by-step guide to buying a new home.
Congratulations on taking the first step to becoming a new homeowner! Regardless of whether you’re buying a brand-new home or a previously owned home, this checklist will help you get a jump start on the homebuying process and keep you on track. Explore the major homebuying steps below, and check off your progress along the way.
Familiarize yourself with your finances.
Before you start looking for a home, it’s important to know how much you can afford, and how much you want to spend. Take a look at your existing spending and income, and determine what your monthly budget should be. In addition, determine how much you want to save for a deposit payment or how much you’re willing to contribute from your current savings for a deposit payment.
Gather all of the right documents.
There’s usually a significant amount of documentation required for financing the purchase of a home. Probably more than you would initially expect. However, the volume of paperwork required is actually incredibly beneficial for everyone involved. Based on the materials you provide, your bond originator can provide you with the best options available to you specifically, and more quickly progress you through the loan approval process, bringing you one step closer to home ownership.
Get prequalified and explore mortgage options.
While pre-qualification is not a mandatory step, it’s highly recommended. Getting pre-qualified shows sellers you’re serious about buying a home, and they may be more willing to work with you and accept your offer over other competing offers. Also, it’s a great way to validate the budget you originally set, and it can officially determine just how much home you can comfortably afford. At this stage, you’ll also be able to figure out which loan type will be best for you.
Create your “ideal home” wish list.
Now that you know just how much home you can afford, you can create your “ideal home” wish list. Make a list of everything you’ve ever wanted in your new home, including size, location, and design options. Also make sure to consider what you absolutely don’t want in your new home. Sort everything into two categories:
“Must-have” features:
These are non-negotiable requirements for your house. While it may narrow down some of your purchasing options, it’s important to know these requirements before you buy rather than discovering it the hard way later. Here are some thought starters to get you going:
- Single-story or two story-home?
- Number of bedrooms?
- Number of bathrooms?
- Is school district important?
- How much square meters do you require?
- Are there any neighbourhoods that you’d love to live in?
- How soon would you like to move in? What is your realistic timeline?
- How far are you willing to commute to work/school/extended family?
“Don’t want” features:
These are options that you absolutely don’t want in a home, under any circumstances. For some, it’s a two-story floorplan. For others, it could be a pool. Your “don’t want” list is just as important as your “must-have” wish list.
Research homes and communities
Now, it’s time to find the right community and home for you. Consider important factors, like the quality of area schools, how well-kept the community is, area crime reports, shopping and dining options nearby, commute times, and which areas are growth looks like.
Johannesburg’s Best Suburbs for first-time Buyers revealed – Property24
If you’re looking at buying your first home, be sure to research the quality and reputation of a homebuilder with a site like the NHBRC
Once you’ve narrowed down your selection, go visit the communities and the homes. Drive through the neighbourhoods at different times of the morning, day and night, and take note of what the areas looks like. Also, talk to people in the area to get a feel for what they think are the pros and cons of the communities.
Chapter 2: Home mortgage financing documentation checklist
There can be a surprising amount of paperwork required to obtain a home loan. The better prepared you are with the documentation your lender needs, the faster and smoother the process will go. Get ready with our sample home mortgage documentation checklist.
