What documents do you need when you are self employed and want to apply for a home loan

It is not always easy to apply for a home loan when you are self employed. Unfortunately, a self employed applicant needs to provide more documentation for a home loan application than an individual working for a salary.

Whether you are self employed or a buyer who works for a monthly salary, note that any mortgage loan grant depends on monthly affordability and a stable credit record.

The self employed are mostly expected to not only pay a deposit of at least 20% on the property, but also have the transfer fees and bond fees available in cash.

Please note: contact a reputable bond originator or your professional accountant prior to embarking on a house hunt to ensure you have the correct information ready and at hand when you are ready to buy a property. 

These professionals are qualified and able to assist you to acquire and prepare the documentation you need for a home loan approval.  
Remember! The early bird catches the worm. It is recommended that you gather the documents before you fall in love with a property and want to put in an offer to purchase, as once you have signed the Offer to Purchase, you will only have limited time to provide proof of your home loan and your ability to purchase the property.

List of documents to have handy when you apply for a home loan as a self-employed person

Do check with your accountant, but you will at least need the following documents as a self-employed buyer: 

• ID documents of all your business' directors, members or trustees
• A list of your personal assets and liabilities
• A letter from your auditor that confirms your personal income
• IT34 
• Financial statements for a last two years
• Personal bank statements
• Business bank statements
• Management accounts, if the financial statements are older than six months
• A financial forecast for the next 12 months 
• Copy of up to date lease agreements
• All statutory documents for your company, Trust or CC

Agreed. It is rather normal to feel overwhelmed when you are in the process of putting all the required documents together as a self-employed bond applicant. 

However, if you start early, before you go house hunting, and ask for the assistance of your accountant and bond originator from the get-go, you will be pro-active and less stressed during the bond application process.


Happy House Hunting!

Contact Alta, The Property Match Maker, from SEEFF, if you want to buy or sell property in Centurion, South Africa. 

She has a wealth of knowledge and delivers service excellence with flair! 

Mobile: 071 758 0996

alta.nel@seeff.com

https://altanel.co.za

#ALTANEL

What to look out for when house-hunting for your next home

Looking at potential properties to purchase, is quite the adventure! However, there is more to house hunting than you may think...

When you view a home for the first time, it is important to hold your horses, and not to get carried away or too over-excited with what you observe. For sure you should allow yourself to feel your potential new home's vibe, but keep the following in mind before you sign on the dotted line...

• Does the property match the advertisement you saw and responded to?
• Is the location within easy reach of good schools, a hospital and main access roads?
• Does it meet the immediate requirements as well as those within the next 7-10 years?
• Do you know what the permanent fixtures and fittings in the home are? 
• Do you know what plants, pots, special light fixtures or fountains etc. the owner plans to remove when he vacates the property? 

• Do you see or smell damp?
• Did you check the water pressure by opening taps and flushing the toilets? Are the sewage lines not blocked?
• Did you determine where the electrical sockets in the home are and what condition they are in? Sure, the electrician will check and certify the electrical installations, but it remains a good thing to verify the condition for yourself for obvious defects also.
• Did you ask your real estate agent for a list of latent defects for the property that informs you of matters that may need attention, such as a leaking roof or a cracked wall?  The scope of this latent defect list will assist you in your decision to make an offer on the property or not.    

• Is there enough secure parking for yourself and your guests?
• Did you determine the noise level in and around the property? 
• Did you inquire about the neighbours? Are they perhaps noisy? Do they perhaps park on other people's drive ways? Do they keep their yard clean? 

House-hunting sure is exciting! Have fun with it! Beware however, not to make a hasty, impulsive decision when deciding to purchase a home without checking the above pointers, at least. 

While the checklist is very useful to identify potential nightmares, the good news is that all houses are not in bad shape. There really are well-priced, well maintained gems in the market that meet your requirements that you had better buy when you find them! Those ones do tend to FLY off the shelf very quickly... 

Contact Alta, The Property Match Maker, from SEEFF, if you want to buy or sell property in Centurion, South Africa. 

She has a wealth of knowledge and delivers service excellence with flair! 

Mobile: 071 758 0996

alta.nel@seeff.com

https://altanel.co.za

#ALTANEL

10 Possible Reasons Why Your Home Does Not Sell

1. Your House is Overpriced 

Buyers are well informed nowadays. Gone are the days when  buyers were unable to compare prices in specific areas and pay too much for a property due to their ignorance.

Today, buyers make informed decisions while browsing online. Ever so often, buyers have already made a decision to buy a house, even before viewing it in person!

As a complimentary service to my clients, I compile a comparative market analysis (CMA), before sellers put their property on the market. Together, with the CMA in hand, we discuss the price homes recently sold for in the area and determine a good estimation of what a reasonable selling price for their property will be. 

Still being too emotionally attached to your home when you decide to sell it, may cause you to insist on a unreasonable selling price which will leave your house on the shelf, while others in the area fly off it. 

2. You Recently Bought The House

Homes repurchased or refinanced within the first seven years of owning the property aren’t likely to sell in the current market. Buyers are more likely to buy a home that has been occupied for more than seven years. 

Owners of homes bought less than seven years ago, are often not negotiable as they are unable to accept the discounted price a buyer may offer, due to bond obligations. 

3. The Market is a Buyer’s Market

A Buyer's market is a market that is flooded with homes that are for sale and buyers have the luxury of choosing which house they want.

In a buyer's market, a seller can expect their home to stay on the market for longer due to the tough opponents it has in the market.

In a buyer's market, owners can expect to receive less and lower offers, because buyer's aren't desperate to obtain a specific property.  

Home owners need to be patient and price it right from the start! This greatly improves the likelihood of your home being sold.

4. The House is Too Personalized

Sure, we all personalize our homes while we live in them, that is what makes house a home, right!  However, when you decide to sell, you need to depersonalize it from the get go. 

Too many family photos on the walls, or a large number of hunting trophies in your bar area, or  and all the beer glasses from accross the globe are aspects that prevent potential buyers to envision themselves living in the home.

Please note: once it is put on the market, it is no longer YOUR home, it is A home buyer's want to imagine themselves living in...huge difference! 

Remove and store your personal items temporarily. Buyer's rarely have the same idea you had for your home and presenting the property as neutrally as possible is your best bet. 

Keeping the home clutter free and tidy while it is on the market, will also assist buyers to make a favourable decision on your property.

5. The Seller is Rigid with Showing Times

When you decided to put your home on the market, it may be a good idea to set your high desire for privacy aside. For the period buyers are invited to buy the property , it is best to be as flexible as possible although it may become challenging at times. 

Sellers who are rigid with the times when potential buyers may view their property, stand a chance of losing potential buyers due to the inflexibility. Unfortunately buyers are often impulsive and contact realtors anytime of day/night to arrange viewings. Being  uncompromising as a seller, only jeopardizes the opportunity to sell your property. Your realtor need to act fast and depends on your flexibility to get the job done. 

Please note, an inflexible seller = a house that does not sell fast =  a lower the selling price in the end. 

If you decide to sell your house, you are advised to get it out of obscurity. Let buyers view it! Then buyers will buy it!  

6. The House is Located in a Less Desirable Area

Living next to the bottle stoor or next to a busy high way is not something you can alter. It is what it is. However, in the world of real estate it is always about location.

If your house is in a less desirable area it can still sell if it is priced correctly. Houses like those are sold every day! 

However, make sure you are open about the pro's and con's of living in that area. Being open about both the good and the bad of the location, will get you much further with a buyer, than trying to hide the challenges of the area.

 8. The House is in a Poor Physical Condition

If your home is in serious need of a coat of paint or a proper yard cleaning, it may be the reason why your home does not sell. 

Sure,there are buyers looking to buy a fixer-upper, but most buyers want to purchase a ready-to-move-in property. 

When house hunting, most potential buyers prefer to examine the structure of the property. If they notice any major damage or see damp on the walls or sagging ceilings with brown water marks on it, they start calculating how much lower they must offer you ( if they will make an offer at all), in order to get those things fixed at your cost and not at theirs. 

My advice to you is, to constantly keep your hand on your property. Fix the chips on the walls or the small leak from the roof, as it appears. Thereby the repair costs remain minimal and affordable and your house stays in tip top condition at all times.

 7. Listing with Poor Estate Agents

Being listed with every estate agent in the area may JUST be the reason why your home does not sell. Estate agents are everywhere to be found, but they are certainly not all equally competent. Please be aware that listing with too many or poor estate agents, could result in huge delays in the sale of your house and actually lower your final selling price. 

Be sure to list with a reputable company, such as Seeff.  Seeff has been in the industry for many years and are known for their well trained estate agents. Seeff has been a front runner the 1960's  and is still one of the companies holding the largest market share in South Africa. 

Be aware of untrustworthy and incompetent agents who are more likely to lose potential buyers with their pushy or scaly tactics.

Remember, an estate agent's work does not end once the offer was signed. You want to be confident that your agent is capable of handling the work load required after the contract was signed!   A contract can easily fall through or lengthen the amount of time it takes to sell a house if the agent is incapable of handling the process that follows after signatures were put on paper. 

A chain is only as strong as its weakest link. One link can cause the entire chain to collapse, leaving you as the seller, back at square one.

9. Bad Odours are Off-Putting

Homes that smell like strong curry or onions or pets are really off-putting to potential buyers.

If your house is on the market, be sure to take extra care with objects that can cause odours and eradicate any strong ones in and around the house soonest.

Consider having your couches and carpets freshened up prior to putting the dwelling on the market and scrub and scent the bathrooms regularly to ensure no bad stenches hang around to disgust the buyers.

On the other hand, the aroma of fresh peculating coffee or the smell of bread baking in the oven during the viewing, is very homey, soothing  and pleasing and may just propel your property right to the top of the potential buyer's list. :)

10. The House is Not Temperature Controlled 

Be very aware of the season in which you are selling your home. There is no reason why a property will not sell on the hottest summer day or the coldest winter morning. What matters is your awareness of the temperature of the day on which a potential buyer is viewing your property.

Turn up the air conditioner if the day is a scorcher or turn on the heat if the temperature is at a record low, before the viewing. Ensure the interested buyer finds your home temperature pleasing or refreshing, whatever the need of the day may be.

When a buyer feels cozy or refreshed when entering your property, they will be more likely to spend more time in it and even make an offer. On the other hand, if they feel uncomfortable with the temperature of the home, they tend to rush the viewing and move on to next property on sale.

May the tips above assist you to get your home sold, FAST!

Contact Alta, The Property Match Maker, from SEEFF, if you want to buy or sell property in Centurion, South Africa. 

She has a wealth of knowledge and delivers service excellence with flair! 

Mobile: 071 758 0996

alta.nel@seeff.com

Website: altanel.co.za

 

How To Find Your Perfect Home To Buy

Knowing what you want before you start your house hunt, dramatically simplifies the whole process... The house hunting process always requires some compromise, but having a good understanding of your most important requirements and preferences upfront saves a lot of time and energy.  This is how to do it.

Make a List

When you set out to buy your perfect home, begin by making a list of your "must haves" and the "nice to haves". Spend time with your partner to determine exactly what it is that you want in your new house and decide beforehand what you would be willing to compromise, should the need arise. 

For instance, your list may indicate the size of the garden you wish to own, the level of security you require, what size and style of kitchen would be great and whether you are willing to purchase a fix-her-upper. 

Getting clear on what you and your partner are looking for will certainly narrow the house search process down.

Create A Scrap Book or Vision Board 

Before you start your house hunt, determine your style. 

Create a scrap book or vision board from magazine cuttings or internet images of your dream kitchen, garden or fire place, etc. This will assist you greatly once you start house hunting. It will narrow down your search immensely as you will not waste time looking at properties that do not offer what you want.  

It is a great idea to share your collage with your estate agent. The collage will assist your agent to understand what you are looking for. When your agent knows what you want, they will certainly endeavour to show you homes that incorporate those attributes.    

Visit Show / Open Houses

Visiting show houses or open houses hosted over most weekends throughout the year offers you the opportunity to discover several homes in your area of interest and introduce you to estate agents who are specialists in the area. 

When visiting show house / open house events, you will soon discover what typical homes in your area of interest generally offer and at what price they are sold. By understanding this, you will be able to determine the costs associated with your predetermined "must haves" and "nice to haves".  

Visiting show houses and open houses introduces you to realtors that are area specialists and allows you to build relationships with them, which may just be of great value to you as they get to know you better. Getting to know an area agent will empower you to gain first hand information about local house prices, the crime rate and the quality of the schools in the community. Furthermore, the agent who gets to know your preferences, will be on the look out for your perfect home and arrange your viewing of the property, as soon as it comes on the market and will not waste your time with ill-matched properties. 

Visiting open houses or show houses, will introduce you to the neighbourhood. Is the community close to main roads, close to parks, shops and good schools. By driving through the community you will be able to predetermine whether the neighbourhood is family oriented or maybe largely populated by pensioners.  

Know What You Can Afford Before You Fall In Love

Having enough cash in hand is always a good thing when buying a home, but for most, the reality is that some percentage, if not all, needs to be covered by a bond. You really need to know upfront the size of loan the bank will approve, even before you start looking for your perfect home. 

Way too often, potential home buyers start their house hunting without pre-qualification by a financial institution. This practice, often results in major disappointments for all the parties involved in the transaction, i. e the seller, the agent, as well as you, the purchaser. Falling in love with a property without knowing what you can afford, is hardly ever a good idea, as it causes stress and uncertainty. 

Instead, you should visit a couple of financial institutions or preferably a bond originator near you to get pre-approval for a home loan and so will know what deposit may be required. Once you are qualified, you are equipped with the financial boundaries within which to remain and can kick off your targeted home search, without worrying that an offer to purchase may fail due to lack of affordability. Knowing what you can afford upfront, surely gives a person peace of mind during the entire process. 

Contact Alta, The Property Match Maker, if you want to buy or sell property in Centurion, South Africa. She has a wealth of knowledge and delivers service excellence with flair! 071 758 0996.

How To Sell Your Property Fast In Slow Economy

Selling your property fast in a strong economy is relatively easy, but selling in a slow economy is certainly more challenging. However, property is sold every single day, regardless of the supposedly weak economy we find ourselves in. 

Having your home on the market can be very stressful for the whole family. To keep your home tidy week in and week out certainly is challenging especially if you have children and pets. Therefore you need to sell it fast and get the stress over and done with.

To sell a home quickly, it needs to be presented well, marketed well, and priced correctly. 

If you need to sell your home on the quick, these tips may just help you get offers very quickly and closer to your intended asking price. 

Plan to sell. 

Too often sellers are unprepared to move when the house goes on the market. The garage is not sorted out, store rooms are stuffed to the roof and rubble lies scattered in the yard. 

When you show your house to prospective buyers, this should not be the case. Buyers looking at your property should see that you are ready to vacate easily. Likewise they should not fear that you will leave your junk behind when you have to move in a hurry.

Plan to move. Be ready to move. Then put your dwelling on the market.  

Get a storage unit

The easiest way to unclutter is to shove all the "stuff" into wardrobes, but this is a bad idea! Interested buyers are sure to open your cupboards and if they see cluttered and disorganized spaces, it may reveal that your home lacks sufficient storage space. 

Consider renting a storage unit for the time your home is on the market. If you choose to use a container, it can be transported to your new home, in a wink of an eye. 

Staging and photography

Hire an agent that uses a professional photographer to take photographs of your home. But be sure to have it taken AFTER you have decluttered the home. Modern day buyers are informed and buys a house online and they are actually 80% sold even before they viewed the property in person. Needless to say, if the photos of your house taken by the agent  is bad, chances are that they won't buy your house.  

Find the right real estate agent

Hire an estate agent who is familiar with the neighborhood. Avoid using too many agents and allowing all of them to peg their boards in front of your entrance. Too many boards suggest there is something wrong with your house and it could even lower the amount a buyer will offer. 

Also do your part to get the word out about your house being on the market. You should still refer them to your agent, but  the more channels of communication are utilised, the faster your house will sell. 

Depersonalize

Buyers that view your house need to imagine themselves living in your home. Therefore, remove any religious symbols, trophies of deer you have successfully hunted years ago, the large cap collection in your bar and the family photos on the fridge and walls. This will enable the buyer to focus on your house instead of on the paraphernalia that are only sentimental to you.

Feel free to hang an art work that enhances and compliments the space and tone the room down.

Light it up

A bright, well lit home is inviting.  Change the bulbs to white light bulbs to brighten the space. Furthermore, draw your curtains and open the blinds so that the natural light can flood the room and make it seem larger. Consider painting the room in a light shade of grey if it seems dark and gloomy inside. Grey is a soft neutral colour and will go well with any colour you may currently have in the space.  

Zoo-sh up the curb appeal!

First impressions count!  Your home’s exterior is typically the first thing a buyer sees.

Tidy up your yard, trim the shrubs, cut the edges of the lawn and sweep the paving. A fresh coat of paint on the fascia boards and gutters will not cost much but surely improve the first impression of the house. 

Brighten the porch with a flower pot filled with in season flowers bought from the local nursery. Clean the bird droppings from the steps leading to the front door.  Add colour to your front door or simply give it a fresh coat of varnish to make the home feel inviting and well kept.

Contact Alta, The Property Match Maker, if you want to buy or sell property in Eldoraigne, Centurion, South Africa. 

She has a wealth of knowledge and delivers service excellence with flair! 

071 758 0996

alta.nel@seeff.com

https://altanel.co.za

#ALTANEL