Buying land can be risky when you do not have the necessary knowledge regarding the appropriate financing of your purchase. This is where CKM Home Loans can assist you, as they are experts in the finance industry in South Africa, and are as such the specialists in property loans to contact regarding applying for financial support when looking to buy land.

Making an application for a property loan is a complex process, and involves numerous costs and tasks which need to be implemented through your loan application in order to ensure that the loan process is carried out appropriately and efficiently.

The cost of buying land

As mentioned, there are various costs which come along with taking out a loan for financial support when buying land or a new piece of property. CKM Home Loans knows what these costs are and will ensure that these are paid out as your loan application develops.

Some of the more important costs involved when buying land include the following essentials:

• Deposit: It is a requirement of most banks that you pay a deposit when applying for a loan. The only time that this will not be required is the case of first time buyers. In general, deposits to be paid depend on the property's value; but on average it comes to 20%.
• Bank Costs and Transfer Duties: These are the costs which are quite often the most overlooked when buying land or property. They are however very important, and should therefore be studied very carefully so as to ensure that you have an understanding of how it is worked out. (CKM Home Loans can help you there). Bank costs and transfer duties can add up to a large amount of money, and so you need to make sure that you know what they are as this will affect the total value of the property and land that you are looking to purchase.
• Conveyancing Fees (Transfer and Registration Fees: You have to pay the conveyancers (attorneys) who register the property in your name, as well as the conveyancers appointed by the bank to register a mortgage bond over your property. The Law Society has recommended tariffs that conveyancers may charge to transfer property into your name and register your bond. The higher the purchase price of the property, the higher the fee. The fees are worked out on a sliding scale.

Making loan application quick and simple

In most cases a loan application should not take longer than 2 to 4 days. This is provided that you have all the necessary information and documentation readily available. So, to ensure that the process of loan application goes quickly and simply, make sure that you have the necessary information which is required on hand. Therefore, when you apply for a loan, there is certain documentation that you need to provide, and having these on hand ensures that the process goes smoothly and in half the time.

As such, you should have the following information with you when applying for a loan:

• Your Last 2 Salary Slips.
• If you are self employed - Certified Financial Statements form your Accountant.
• Your last 6 months bank statements.
• Proof of residential address ( utility bill - electricity, telephone )
• I.D. Documents
• Marriage Certificate ( If applicable )

This information is essential and required by the financial institution you are applying for a loan from for the following reasons:

• To Check your credit rating
• To Determine your monthly installments
• To Determine the value of the Home Loan
• To determine your monthly expenses to make sure you can repay the loan.

With knowledge in all that is required by the applicant of a loan, CKM Home Loans is here to help make the process go that much quicker and efficiently; ensuring that applicants have all the important documentation with them at all times in the duration of their loan application.

As such, CKM Home Loans will go step by step with these applicants through the process of loan application to get for them the best and most affordable loan possible.