chapter one - leogem€¦ · your lender will review your chequing accounts, savings accounts, and...

Homebuying 101Use our Homebuying 101 guide to

help you with everything from the

moment you conduct your initial

seearch to the day you move in.

CHAPTER ONEBUYING A HOUSE CHECKLIST

Leogem Property Projects Homebuying 101 - Chapter 1

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.

FAMILIARIZE YOURSELF WITH YOUR FINANCES.

There’s usually a significant amount of documentation required for financing the purchase of a home. Probably more than you would in-itially 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.

GATHER ALL OF THE RIGHT DOCUMENTS

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.

GET PREQUALIFIED AND EXPLORE MORTGAGE OPTIONS

“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.

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:

CREATE YOUR “IDEAL HOME” WISH LIST

Homebuying 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.

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.

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 TWOHOME MORTGAGE FINANCING DOCUMENTATION CHECKLIST


Your home mortgage financing documentation checklist.

When it comes to applying for a home mortgage loan, you’ll be asked to collect and share what

may feel like a significant amount of your personal information. This is to be expected, and in

being thorough, you can actually help make the process even more seamless. Take a look at some

of what you’ll be asked to share.

The first step in the mortgage lending process is to verify your personal information and credit

background. To do so, your lender will typically request a photocopy of your current Driver’s

license and ID copy and the following information for each borrower applying for the loan.

PERSONAL DOCUMENTATION

In addition to looking at your Driver’s license number and ID number, most lenders will also cross-reference your address to verify your identity and any

existing home loans.

Your lender typically will review:

• Previous addresses for the last two years

• Your current landlord’s name, address and phone number (if applicable)

RESIDENCE HISTORY

Because employment is a major factor in qualifying for a home loan, lenders pay close attention to how long someone has been employed. Specifically,

they look at the duration of employment, as this indicates financial stability. It’s also important to note that some lenders may call your previous place

of employment to verify the information you provided.

They’ll typically review:

• Names and addresses of all employers for the last two years,

and dates of employment with each

• Payroll —or other proof of income—for the last 30 days

EMPLOYMENT HISTORY

• Two years of SARS and IRP5

• Year-to-date profit and loss statement and IT34 (if self-employed)

One of the most important aspects of applying for a home loan is providing insights into your financial history. Your lender will review your chequing

accounts, savings accounts, and any other financial or banking account information provided. This will ultimately help them determine how much you

can afford to borrow, plus what you will need to have saved for a deposit payment and any closing costs.

At this point, they’ll typically review:

• Last three months’ worth of bank statements

from your savings and cheque accounts

• Recent statements from any investment and retirement accounts

• Proof of earnest-money, such as: contracting, deposits, etc

• Proof of closing funds

• Other existing loans, such as personal or student loans

FINANCIAL HISTORY

• Copy of your most recent property municipal account (if you currently own a home)

• Copy of your most recent homeowner’s insurance bill

(if you currently own a home)• Copy of your most recent mortgage statement

(if you currently own a home)

In addition to the above documents, which are standard across almost all lenders today, you may be asked to provide additional documentation that

explains special, unique or uncommon circumstances.

• Your lender will specify what documents are needed, but

they may include any of the following (if applicable):

• Complete rehabilitation papers, including discharge if bad

debit was incurred

• Complete divorce papers in divorced instances

For a more in-depth look at your own personal new home build financing process, call our offices to chat with our finance liaison to feel prepared and confident at every step.

ADDITIONAL DOCUMENTATION

• Signed and dated letters that explain certain situations, such as switching

from full-time employment to self-employment

• Verification of child support or alimony payments - Having these documents prepared in advance can save you a lot of time and trouble. It will also make the entire loan process smoother and faster, preventing unwanted delays.





CHAPTER THREEHOMEBUILDING PROCESS TIMELINE


Steps to building a home: from laying the foundation to finishing touches.

While this isn’t an exhaustive list, it includes some of the major milestones in the typical new home construction and building process.

There’s plenty to choose from, and yours is in one of our prestigious, secure developments. Once you find your unit, your sales associate will help you sign a purchase agreement, submit it for approval, and get you started with the homebuilding process. After you submit your earnest money (ie income and expenditure), you’ll be able to:

• Pick your units: When selecting the lot your home will be built on, be sure to consider where it’s located in the development. You may also want to consider your home’s directional placement, paying close attention to the amount of sun exposure it may receive at any given time of day. Lastly, know that some units may come with a premium, depending on its size and where it’s located within the development.

• Pick your floorplan: Now it’s time to start personalizing your home. When selecting a floorplan, consider how you’ll be using your new spaces. Love to entertain? Pick a floorplan with large, open living areas or a plan with a large formal dining room. Have a big family? Select a plan that gives you extra storage or more rooms

• Leogem exterior façade: If you’d prefer to leave the tough decisions to the experts, Leogem has years of experience in pre-designing state of the art exteriors. This way, you can take heart in knowing that your home’s upgrades and features were hand-selected by professionals who have the experience and expertise to make informed choices for that particular home.

MILESTONE #1: FIND YOUR PERFECT HOME

MILESTONE #2: SELECT YOUR DESIGN OPTIONS

At this point, you’ll be asked to choose your feature option with your sales representative. Although it’s early in the process, you’ll make choices now that reflect your lifestyle and personality. From countertops and colors to carpets and cabinets—this is where you will be able to give your home a personal touch.

MILESTONE #3: WATCH YOUR HOME COME TO LIFE

Now that you have your plans in place, it’s time to watch your home take shape. While some stretches of the construction process may feel slow, other phases seem to happen in the blink of an eye. This is a normal part of the build process and is woven into the overall home timeline. While your home is being built, your sales associate or our administration home builder representatives at Leogem will help you understand the phases of construction, including:

• Site preparation: This is when they prepare your home’s lot for construction.

• Laying foundation: It’s just the start, but it’s the start of something great — your new home.

• Framing your home: You can really see it take shape, now that the walls and roof have an outline.

• Plumbing and electrical: When visiting your homesite, you may see a lot of wires, pipes and ductwork. This is a natural part of the build process.

The good news here? This is when things start to move

• Insulation, drywall and paint: Now your house really looks like a home. The walls are up and complete, and you can see it starting to come to life.

• Cabinet, appliance, flooring and fixture installation: The finishing touches are complete, and it’s almost time for you to move in.

During this process, you may be tempted to do your own walk-through, but it’s important to exercise safety first and stay clear of the construction site. There may be times you are asked to come view the home at various stages, only then should you visit. It’s also important to be on time and make every effort to attend scheduled check-in meetings. Otherwise, there could be delays in the building process.

MILESTONE #4: HOME INSPECTION AND WALK-THROUGH

At this stage, everything is complete. Before you close on your brand-new home, you’ll get what’s known as a “homeowner orientation.” This is your chance to get familiar with how your home works, look for anything that may be amiss, and note it so it can get fixed. Once that’s done, you’re ready to close.





CHAPTER FOURTHE CLOSING PROCESS


WHAT TO BRING?

By now, your lender should have all the information they need, with the exception of a few documents. Here’s what to bring to the closing appointment.

• S.A government photo ID book, driver’s license or passport

• Proof of any homeowners insurance

• Set up of the electronic debit order transfer for the monthly payment

(or other approved method of payment)• All purchasers who may be listed on the contract, including co-borrowers

or co-signers

Once the occupancy certificates are issued by the City Council, you will be called in to take a look at your house to check for any default workmanship. Not to worry you will have three months provided for by the NHBRC to check for any repairs that need to be done. This will assure you that the highest quality product is strived towards.

SNAGGING OF WORKMANSHIP

SIGNING THE PAPERS

Plan to spend approximately an hour to an hour and a half to sign all the papers required at closing. There are a lot, but don’t worry: the bond registration and conveyancing attorneys will walk you through everything, and explain as you go. Before signing each page, remember to double-check:

• All personal information, including ID numbers and dates

• Loan information, including final cost, monthly re- payments and interest rates

• Home information, including address and square meters

• Payment terms, due dates and late fees

• Your understanding of what you’re signing and what contractual terms you’re bound to

When you return home, be sure to place these documents in a safe place, because you may need to reference them again for any home warranty information or loan questions.

GETTING THE KEYS

Congratulations! You are now a new homeowner. Most of the time, you will receive the keys to your house immediately upon regis-tration and transferring of title deed into your name. Once you have your keys, all that you have left to do is move in and enjoy your new home.

Closing on a home: what to expect during the final homebuying process step.

This is it. The final step in the homebuying process. After months of searching, budgeting and plenty of planning and prep work, it’s time to deliver your purchase payment, sign the bond registration and transfer paperwork, and get the keys to your brand-new home.

Now that you know what your official new address will be, it’s time to announce it to everyone. There may be a few outside of this list, so be sure to double-check all of your existing services and subscriptions. Notifying every one of your new address will help prevent any unwanted bumps in the road, like late payments or having a delay in mail delivery.

• All banking and financial institutions,

including student loan and credit card companies

• Friends and family

• Your employer

• Insurance companies

• Post Office

Within a week to several days before you move, make sure you note which services and utilities need to be turned off and which need to move with you. Most transfers and cancellations can be done over the phone, but plan on contacting all of the companies listed below at least thirty days or one calendar month before you plan on moving into your new home.

• Cable, internet and telephone• Gas and/or electric





CHAPTER FIVEMOVING GUIDE


• Healthcare providers, including doctors and dentists

• Any subscription services, including digital subscriptions,

when updating credit card information

• Schools and/or day cares

• Voter registration

• South Africa Revenue Services (SARS)

• Water and utilities• Traditional subscription services, like newspapers and magazines

STEP 1: EMBRACE THE URGE TO DECLUTTER YOUR LIFE

Things have a tendency to accumulate in our home. It happens to the best of us. Instead of packing up the whole home and figuring it out when you arrive, purge what you don’t want now. Know that it’s also never too early to start this step. Simply go through each room, and note what you don’t want to take with you, what you will no longer need, and the best way to get rid of these items. We suggest you consider two options:

• Donate personal items and clothing to local charities or community centres

• Hold a garage sale for large, hard-to-move or big-ticket items

STEP 2: PLAN YOUR MOVE

There’s a lot of planning and preparation that goes into moving. Start this step as soon as you know you’re going to move.

• Pick the day and time you will begin moving• Call family and friends for help, if needed

STEP 3: PACK BY ROOM AND TAKE AN INVENTORY

As tempting as it may be to throw everything into boxes and just go, the more organized you are when you pack, the easier it will be to unpack. That’s important for feeling at home in your new house as quickly as possible. Start by packing everything by room, and clearly note on the box in which room the items will belong. Then, take an inventory of how many boxes you have for each room, plus the items that were packed inside them. This will help you know if anything was lost in the moving process, and it will also help you determine the order in which to unpack.

• Boxes packed by room• Boxes marked and inventoried

• Schedule deliveries and services for the day of the move• Reserve a moving truck or hire a moving company

STEP 4: TURN OFF OR TRANSFER EXISTING SERVICES

STEP 5: CHANGE OF ADDRESS NOTIFICATIONS

Moving guide: what to do, when to pack and how to plan.

The Handover documents are signed and the keys are in your hands. All that’s left is to move into your brand-new home. This is an exciting time, but it can also be a stressful one. Follow our guide to moving in, so you can minimize any unnecessary stress by feeling prepared.





CHAPTER FIVEMOVING GUIDE


STEP 6: PACK A FEW ESSENTIALS SEPARATELY

It may take a while to unpack, so go into your new home prepared with what you’ll need for the first few nights and days. These should be everyday items that you need now, and don’t have time to hunt for in boxes, including:

• Toothbrush and toothpaste

• Toilet paper and paper towels

• Shampoo, conditioner and hair products

• Three days’ worth of clothes

• Sheets and towels

STEP 7: UNPACK AND UNWIND

Unpacking and moving in may take some time, but once you do, you’ll start to feel at home. Start with the essentials, like clothes, toiletries and kitchen supplies, then move on to decorations and accessories last.

(CONT)

chapter one - leogem€¦ · your lender will review your chequing accounts, savings accounts, and...

Documents