My husband and I finally decided to make the “big move” (no pun intended!) and purchase a little house that we can call our own. So, with no any previous experience of how a home loan works and what is required, we set out to quickly complete this straightforward process. Man, oh man, were we brought back to reality with a bang!?

Obtaining a home loan is not something you can quickly complete while having a cup of coffee! It is quite a long, involved process and can be very overpowering if you don’t know what to anticipate. Let’s look into the thousand and one steps (well, almost!) to acquire a home loan:

(It’s actually quite interesting that it takes “lucky 13″ steps to obtain a home loan, don’t you think?)

Step 1: Find the house you intend to buy. Don’t laugh – this is not as apparent as it sounds. A lot of people may wish to get a general understanding of how much they will be able to borrow, prior to starting the big house search. Most home loan organizations will on the other hand demand an offer to purchase or related document to get the process started.

Step 2: Find a lender. There are various lender companies available. Chat to relatives and buddies and get tips about which companies might be the best choice.

Step 3: Fill out a loan application form. This is purely self-explanatory – just be sure you have all your personal info available.

Step 4: Get an idea of costing. Make sure that you have a clear comprehension of all the expenditures that will be involved with the process – for example legal fees and transfer fees.

Step 5: Compare and contrast costs. Not all home loan companies will offer you an equally good deal.

Step 6: Negotiate costs. If you’re not wholly pleased with the deal on offer, see if you can negotiate a better deal. Plead, grovel or threaten if required (just kidding!).

Step 7: Agree to a specific lender and interest rate. Now you are set for action!

Step 8: Provide the required info. Ensure that you have all the required info – proof of income, proof of expenses, marriage certificates and all other documentation.

Step 9: Pay any up-front fees. This could be in the form of credit profiles or processing costs.

Step 10: Read the loan agreement. Make sure that the loan matches the first quote you received and that all information, conditions and terms are in order.

Step 11: Sign on the dotted line. No explanation needed here.

Step 12: Make another payment. Normally , this is in the form of a down-payment and won’t always be relevant.

Step 13: Hurry up and wait. The waiting time depends from home loan company to home loan company. Get the bubbly on ice in the meantime, so that you are ready to rejoice when you get the good news!

Finding and purchasing your dream home shouldn’t be a stressful process – keep the above steps in mind and you will be fine!

For more information about a home loan visit the website http://www.isureins.co.za