RBA’s 7 Steps to home ownership
All developers follow a certain process when clients want to buy a house. Sometimes they differ slightly, but the fundamentals stay the same. Here is how we do it at RBA Homes.
After exploring the benefits of home ownership you may decide that buying a property is your best option. Here is how to proceed.
Step 1: Complete an “Expression of Interest” form
Ask a sales associates to help you complete an Expression of Interest form. By doing this you are showing you are serious about becoming a home owner.
We will need a copy of your ID document and authorisation from you to access your credit history. This will allow us to access a report detailing your current credit status, enabling us to give you the best advice on the likelihood of you qualifying for a home loan.
We will also need a recent copy of your payslip to allow us to do an affordability analysis for you. If there is more than one applicant, we will need this information for each applicant.
Step 2: Feedback from your client consultant
You will be assigned your own personal client consultant, who will schedule a feedback consultation with you. The consultant will analyse your credit report, help you understand its contents and do an affordability assessment with you.
At the end of this step, you will know the price range that you will likely be able to afford. In addition the client consultant will ensure that you have a clear picture of the home-buying process that lies ahead.
This process will help you to know:
- How each bank is likely to assess your application in terms of their credit criteria.
- The maximum amount that a bank is likely to lend you.
- Your spending patterns through a detailed income and expenditure analysis so that, if required, you can free up more cash to buy your home.
- What you can realistically afford to spend each month on your home, based on an affordability calculation.
If your financial position is not strong enough to allow you to purchase a home right now, the client consultant will discuss how you could go about improving your finances so that you will be more likely to be able to buy a home in the future.
Step 3: Choosing a home that is right for you
Everybody is different and has different needs. Some families are small and others large, some have small children and some have teenagers. Some people want to live close to work and others close to their family support structure.
Your client consultant will aim to understand your specific home ownership needs in order to best advise you on the right area and architectural design to best match these needs while still meeting your affordability requirements.
Here comes the fun part! You will now visit the areas of your choice to get a feel for the location and see for yourself what each area has to offer.
You will also have the opportunity to visit one of our fully furnished show houses. This allows you to get first-hand experience of the quality of the product as well as helping you to choose the floor lay-out, style and finishes that will suit you and your family’s needs best.
Because there is so much to consider when choosing your first home we have compiled a free Buying Your First Home guide to help you through the process.
Step 4: Bank home loan application
Once you have chosen an area and a home that is right for you, we will prepare all the necessary documentation for your signature.
Your completed application is submitted to all major banks to ensure you receive the best possible offers. The banks will conduct their own credit checks, qualification calculations and an affordability assessment.
These documents are included in your application:
- a bank application including recent payslips and bank statements;
- your final RBA quotation; your chosen house plan;
- building specifications for your house;
- a building contract;
- your Project Management Agreement;
- the Deed of Sale; and
- an NHBRC Enrolment Application.
If your home loan application is successful, you will move on to step 5. If your application is unsuccessful, your client consultant will work with you to try and formulate a plan to improve your application based on the feedback from the bank.
Step 5: The signing ceremony
Congratulations! Your bond has been approved. You will now be given the opportunity to accept one of the offers from the various banks.
The bank will then instruct attorneys to draw up the necessary bond and transfer documents for you to sign. When these documents are ready for your signature you will be invited to attend the signing ceremony.
You will need to bring certain documents and information to meet the bank’s FICA (Financial Intelligence Centre Act) requirements. These will generally be:
- Your green bar-coded ID document or other acceptable identification
- Proof of residence not older than 3 months (a utility bill or store account with your name and address)
- Your SARS tax number
If there is more than one applicant, we will need this information for each applicant. At the same time, you will sign off your final house plan as positioned on your stand by our architects.
The architects will also ensure your new home’s plan and positioning complies with the SANS energy saving regulations. This plan will be submitted to the local council for approval.
Step 6: Transfer and construction of your new home
It is possible that the bank might grant you either a building loan or a standard home loan. In the case of a building loan the attorney will immediately lodge the documents with the Deeds Office so that transfer of ownership of the property to you can take place before construction begins.
Once registration has taken place, you are the proud owner of your own piece of land, legally registered in your name. Congratulations!
If you have a standard home loan, registration of the property into your name will only take place after completion of construction of your house.
While the legal process has been running its course, our team of professional project managers has been busy planning the construction of your house.
In preparation for construction, the following has generally been done:
- Your house is enrolled with the National Home Builders Registration Council (the regulatory body that maintains building standards)
- Your plan has been approved by the local council, and
- Connection fees have been paid for your electricity and water meters.
You will be contacted by our Client Communication Team and will be informed of the expected commencement date as well as the expected completion date of construction.
In addition, you will receive regular updates from our Client Communication Team of progress on your home. If you have any questions you can contact the team for assistance by contacting our call center.
Our expert construction teams will handle and supervise the entire construction process until the day we hand you the keys to your new home.
Step 7: Receiving your keys
When RBA’s construction teams have made the final finishing touches to your new home, you will be contacted to arrange for the handover of your new home.
The big day has arrived! One of our team members will meet you at your new home and, together, you will inspect the final product. Once you are satisfied you will receive the keys to your brand new home!
Our relationship doesn’t end here. After receiving your keys you can contact us at our call center on 0861 939 939 or email us if you have any questions.