Those who plan to buy a home should very definitely not wait until they make their final choice before getting their documentation in order.
Lanice Steward, MD of Anne Porter Knight Frank (APKF), says matters which should be looked into, are:
- Tax: it is essential to have your tax paid up to date because unpaid taxes will result in the transfer being held up. If you are buying in a spouse's name, check that he or she has a tax number.
- Proof of salary: to qualify for a bond, you will have to produce salary slips dating back at least three months. You will also have to produce an analysis of your full monthly expenditure.
- FICA compliance: to get yourself cleared under the Financial Intelligence Credit Act, you have to produce not only all bank statements but also your ID book and evidence of residence.
- Debts: bonds are always awarded quickest to those who have only limited debt. It will pay before you start house hunting to eliminate serious debts, including credit card sums. If for any reason you have been blacklisted by the credit bureaus, it is wise to get his matter dealt with.
"Often, a homebuyer will have overlooked some minor payment or refuse a payment because of a dispute. This can result in his appearing on the bad debtors list, which could result in having his bond application refused."
"Any purchase as large as a home is likely to be stressful. In the circumstances, the more you can clarify your position early on, the better. The person with his bond position and documentation already sorted out is in a far stronger bargaining position."
For more information contact Lanice Steward on 021 671 9120 or send an email.
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