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The first step in building a home would be to determine whether you qualify for a building loan. BetterCredit can assist you by providing you with a Credit Health Rating report. The Credit Health Rating report will give you a good indication as to whether you will qualify for a building loan. If you have a poor credit rating but already own another property BetterCredit may be able to assist in restoring your creditworthiness. Read more about BetterCredit service offering by clicking here.

There are a few things you have to know in order to make sure that the rest of the home building process runs as smoothly as possible. Most importantly, you have to find out how much you can borrow. The maximum amount that the banks are willing to lend you is calculated based on your household income, monthly credit commitments and your credit profile. According to the National Credit Act the loan repayment amount should not exceed 30% of your nett income. BetterBond has developed a range of easy to use Online Calculators for you to work out various bond repayment scenarios and the maximum bond you may qualify. Click here to view our calculators.

As a SA’s no.1 Bond Originator, BetterBond will handle the entire building loan application on your behalf – free of charge. BetterBond’s aim is to source the best interest rate for you by submitting your home loan application to all the major banks for approval and processing. BetterBond uses leading technology that not only improves but speeds up the application process of applying for a home loan.

The safest way of purchasing a piece of land is to have your estate agent or attorney draw up the Offer to Purchase Document for you. This document is sometimes also known as an agreement of sale or deed of sale. Basically, it is a written agreement, stating the terms and conditions under which you agree to the buying and selling of the property. Your estate agent or attorney should then thoroughly explain each and every clause of the Offer to Purchase Document. This will guarantee hassle-free paperwork and avoid disappointments.

The Offer to purchase is a binding contract, once it has been signed by all parties concerned. The verbal sale of property is invalid.
Offer to Purchase Checklist:

• Is the description of the property correct as described in the title deed?
• Are all the buyer’s and seller’s details correct?
• Is the purchase price correct?
• Are you aware of any special conditions and the time period in which these conditions need to be fulfilled?
• Is the estate agent’s commission, as agreed upon, correct?

After the Offer to Purchase has been signed by all the parties, a registration attorney is appointed by the bank to attend to the registration of your bond. You will be requested to sign all the necessary documents at your attorney's office. The transfer and bond registration fees must be paid in full before the bond is registered in your name at the deeds office.
You as the buyer are responsible for payment of all costs and fees in regard to registration of the bond and for the transfer duty. The transfer and bond fees must be paid in full before the bond is registered in your name at the deeds office. Make sure you budget for this expense, by using the transfer and bond costs calculator.
Once all fees are paid in full the documents are sent to the deeds office. The home loan will be registered in your name at the deeds office by the registering attorney.

As work on your building progresses, your builder will require payment. The banks will make these payments based on the estimated cost of building work completed, and after receiving a request form from you.

Building payments

Upon completion of the contract, when the builder calls for final payment, inspect the house to ensure it has been completed to your satisfaction. You will be requested by the bank to sign a letter of satisfaction, advising them that you are satisfied with the completed house. Click here for more information.

Finally the bank will confirm your monthly installments with you. Normally your first monthly installment is due within 30 days of registration. Remember to confirm this with the bank, it might also be a good idea to set up a monthly debit order against your bank.

The final step is to arrange to move in. The date you move in is agreed by you and the seller.
You may also want to:

• Insure the structure of your house, your home loan debt and your home contents.
• Arrange with a furniture removal company to move your household contents.
• Inform your suppliers (Telkom, City Council, etc) that you are moving out, as well as arranging for the services at your new home.
• You may also want to ask the Post Office to redirect your mail from your old address.

Once you've moved in there are a couple of extra things that you should do. First, after the first month, check that you're paying the right mortgage repayment amounts at the right time.

Lastly, make sure that you carefully file away all the important documentation you have gathered. They are your primary record of your purchase and your mortgage and you may need them in the future.