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An Overview of The Home Loan Process

Written on June 22, 2010 by admin in Content

Home Sweet Home! Everyone knows that and at the end of the day when you drag yourself back from the hefty schedule of daily life, the adobe is never less than a paradise on earth! But the weird part is that the process of buying a house can be a difficult task and especially when you are looking for a home loan to buy your dream home, lengthy application process can be the worst thing you face.

The process for home loan:

The process for home loan involves the following steps as mentioned below:

Bond (Home Loan) Registration:

The registration process involves various people and they are:

The Seller
The Estate Agent
The Buyer
Seller appointed Transferring Attorney
Bank appointed Bond Attorney
Bank appointed Canceling Attorney

The Process of Home Loan:

The purchase offer: Both the seller and the buyer come to an agreement and both of them sign the offer of purchase. Once this is done, the buyer applies for bond which is also known as home loan.
Bond approval: Once the home loan is approved by the bank, the bond attorney is instructed by the bank to register the bond.
Property transfer: The transferring attorney then transfers the property on the seller‚Äôs advice. The cancellation figures and the title deed of the property are requested from the bank which holds the property bond. Once that is done the statement for taxes and rates is demanded from the local authority.
Bond Attorney: Once the above steps are done, the bond attorney then gets in touch with the transferring attorney and advises the later about the available amount for guarantees. It is then that the transferring authority requests for the cancellation figure and the title deed.
Cancellation Attorney: The cancellation attorney gets the request to cancel the seller‚Äôs bond after the guarantee is received against the outstanding amount.
Transferring Attorney: Once the bond is cancelled, the transferring authority gets the copy of cancellation figure and the title deed and sends the same to the bond attorney. Once done, the buyer and the seller are contacted to sign off the transfer documents. After this the buyer pays the transfer cost and transferring attorney pays the taxes, rates and transfer duties.
Bond Attorney: The bond attorney then prepares the bond document along with the buyer. Once done, the buyer pays off all the costs after he/she signs the documents. After this the bond attorney issues after preparation of the necessary guarantees and forwards the same to the transferring attorney and then gets the documents ready for Deeds Office lodging.
Transferring Attorney: Once all the guarantees are received by the transferring attorney, they are all forwarded to the cancelling attorney.
Cancellation Attorney: In the next step, the cancellation attorney requests the lending bank to cancel the home bond of the sellers.
Deeds Office: Once the documents are signed and the costs are paid, all the documents are lodged at the deeds office by all the concerned attorneys. The office takes two to three weeks to check all the documents and once done and ready for registration, all the attorneys are contacted.
Bank pays: The bank pays the loan on the day of registration.

In general the time frame required for the registration and transfer of home loan is three months minimum.

What Is Different About ABSA Home Loans?

Written on June 8, 2010 by admin in Content

ABSA home loans are made through one of the largest banks in South Africa. Thus, if you are buying a home in South Africa it behooves you to deal with ABSA for your home loan.

There are a number of different loans available for your home. For instance there is the Absa Home Loan, the MyHome Home Loan, as well as different home loans for existing customers.

The ABSA home loans are completely flexible, enabling you to finance not only your residential property but also even vacant lots that you intend to use to build your residence upon. You will be able to tailor and customize your home loan so that it fits your needs perfectly.

Actually, you may be investing in other property using their additional funds, or perhaps you wish to utilize the equity found in your home in order to manage your debts. They also give ABSA Home Loans for improving an existing home, building a new home, or buying an existing home.

There was mention above of the ABSA loan being flexible, thus you may be wondering in what way this is so. Well, for instance you may pay off your loan sooner than you negotiated for, anytime prior to the normal 30-year payoff. Thus by accelerating your payments, you will be paying substantially less interest. As you'll remember interest is figured out on the balance of what you owe, thus for every additional payment you are making over and above your regular payment, you will see the figure move down for you.

Some people naturally wish to pay off their mortgage faster, and thus even when you open the loan with ABSA you will be given a choice of either a 30-year bond or a 20-year bond. Thus your mortgage can be tailored to fit you specifically. Affordability is key here, as your payments will obviously be lower with a 30-year bond.

More choices are available for your ABSA home loans in that you may be presented with a choice of a fixed rate or a floating interest rate. Floating interest rates are tied into the prime-lending rate available on the Web or in your local newspapers. If on the other hand you wish to utilize a fixed rate, you may do that. Simply remember though, that fixed rates are negotiated for a specific amount of time, and when that time expires, the loan's interest rate will reset to the prime lending rate or the variable rate. When interest rates are low, many people refinance their real estate, thus if you are expecting a lowering of interest rates, then a fixed rate is best.

Interestingly enough you will also find that ABSA home loans can also be increased if your home's value goes up. ABSA refers to this as a Further Advance. Also available to you is a Readvance. This works in this manner, your have paid off let's say 50% of your home's mortgage, but you'd like to borrow against the repaid portion. ABSA will also work with you to accomplish this.

Insure your Property Properly

Written on April 13, 2010 by admin in News

It’s a good idea to review your insurance provisions from time to time and make sure you have the correct cover for your home and any other properties you own.

“As a priority, you need a policy that protects you in the event of damage to your home by storms, fire, flooding or any other major disaster. This is called homeowner’s insurance and is essential even if your home is not bonded, or you could find yourself having to meet substantial repair bills or rebuilding costs out of your own pocket,” says Harcourts Africa CEO Martin Schultheiss.

“Even worse, if your property is bonded and you don’t have the proper insurance, you could end up without a home but still owing the bank the outstanding amount on your home loan.”

When deciding how much insurance to take out, he says, you should bear in mind that building costs go up every year, so you need to insure your property at the current replacement value and not at the price for which you bought it or even the current market value. As an indication, the difference in price between newly-built homes and similar pre-owned homes is about 15% to 20% at the moment.

Read the full article at:

http://www.property24.com/

How 2010 Budget Affects Property

Written on March 17, 2010 by admin in News

Against a backdrop of a major slowdown in household consumption expenditure, declining imports and exports and falling unemployment, which has led to a significant reduction in tax revenue, role players in the property industry, still operating in tough economic conditions, have received little further direct tax relief following the 2010 Budget.

Although very little was announced to directly stimulate the property market, the R6,5bn in tax relief for individuals would no doubt assist the ailing market. Substantial proposed spending in areas of infrastructure and rural development will be a key feature of the economic stimulus and investment by state-owned entities, and it was announced that targeted lending by development finance institutions will be increased as critical components of the economic recovery.

Read the full article at:

http://www.property24.com/

Rentals: Tips for Property Owners

Written on March 10, 2010 by admin in News

It is that time of the year again when new leases are signed, and whether you are a property manager, homeowner or landlord, there are some common tips to help manage your property during 2010.

Michelle Dickens, managing director of TPN, a registered credit bureau, shares her top tips when it comes to property management.

1. Plan your year. By knowing your budget and setting up short-, medium- and long-term goals for the year. By breaking your action plan down into achievable monthly targets you will be able to ensure that your business reaches its full potential.

2. Look after your property. Quality properties attract quality tenants. All properties deteriorate over time. A smart investor understands the advantages of spending to maintain the property and remember the money spent is set off against the tax expense.

Read the full article with all 9 tips at:

http://www.property24.com/

Factors to consider for First Time Buyers

Written on March 9, 2010 by admin in News

Economic growth is picking up, interest rates are low and home prices are still reasonable, so many people have decided this is the best time for them to get into the property market by buying their first home.

However, says Berry Everitt, CEO of the Chas Everitt International property group, after they select an area they would like to live in and start looking at individual properties, first-time buyers often find themselves “freezing up” at the prospect of the huge commitment they are about to make.

What if they pick a property that turns out to need expensive repairs? What if the new neighbours turn out to be ghastly? What if something better comes up just after they’ve signed a sale agreement?

Read the full article at:

http://www.property24.com/

Global interest in SA property rises

Written on March 4, 2010 by admin in News

2009 Expat Experience rates SA as the sixth best place for people living and working overseas.

People all over the world are showing an increasing interest in SA property, as evidenced by a huge rise recently in the amount of international traffic to local property websites.

For example, international traffic has comprised 60% of the visits to www.realnet.co.za, the website of the national RealNet estate agency group, over the past six months, with enquiries coming from 1663 cities, mostly in the UK, Europe and the Middle East, but also in Africa, Australia, the Far East and the US.

“And this is not just because of the additional publicity the country is getting as the host of the Soccer World Cup, although that does play a role,” says RealNet marketing support manager Piet Olivier.

Read the full article at:

http://www.realestateweb.co.za/

What is an Offer to Purchase?

Written on February 25, 2010 by admin in News

For many home buyers, the intricacies of making an Offer to Purchase remain a mystery.

“Essentially, it is an agreement that contains the terms and conditions for the purchase and sale of a property. Both parties need to come to an agreement about all sorts of issues before the document is signed. Everything that is agreed upon must be listed in the Offer to Purchase document,” says Adrian Goslett, CEO of RE/MAX Southern Africa.

“The Offer to Purchase needs to contain all the terms on which the parties agreed, such as date of occupation, occupational rent, fixtures and fittings and the conditions of sale.”

Read the full article at:

http://www.property24.com/

All about Pricing your Property

Written on February 24, 2010 by admin in News

Overpricing has been one of the biggest banes plaguing the property market over the last few months and virtually all experts have cautioned sellers against it.

Here we will attempt to highlight the importance of correct pricing, the reasons for and expected consequences of overpricing, the steps for setting the price and the role of the agent in the pricing process.

1. Why is pricing important?

This is probably the most important factor in a successful sale. Pricing your home correctly is essential in achieving the highest selling price in the shortest period of time. Your property has to be priced at a level that is competitive with other similar properties on the market, creating an impression of good value.

Correct pricing increases advertising response, stimulates buyer interest, compensates for property shortfalls and provides the seller with a negotiating advantage. By overpricing your property, you will attract buyers in a higher price range with higher expectations, leaving you with no realistic chance of selling your property.

Read the full article at:

http://www.property24.com/

Beware Hidden 2010 Rental Costs

Written on February 18, 2010 by admin in News

Insurance tips, traps for home-owners who open their homes to foreigners

Renting out assets to World Cup tourists will probably affect the owner’s insurance, BJM Insurance Brokers said on Tuesday.

“Failure to disclose a material change to your insurer could invalidate your cover, while proper disclosure may lead to increased premiums,” BJM said in a statement.

Insurance cover most likely to be affected included household contents, buildings, vehicles and public liability.

“Insurance protects you under a certain set of circumstances.

“When circumstances change so should your insurance,” BJM said.

Letting and hiring out insured assets constituted a material change in circumstances.

Cover for house contents insured the owner and family members not tenants and their belongings.

Read the full article at:

http://www.realestateweb.co.za/