Buying a home is not like buying tomatoes - this statement makes a lot of buyers and seller very uncomfortable. Preparation for homeownership starts long before the purchase takes place.

You can find free guidance on our website to help you educate yourself about the buying process, pitfalls to avoid and being mortgage-ready (if you don't have deep pockets to pay full cash for your purchase).

Buying a home can be challenging especially for a first-timer. You can act quickly but don't rush the process until you feel you're ready. This Free Homebuyer Education Guide will teach you the step-by-step process of buying and owning a home.

 

Disclaimer: This educational material is for general information and does not constitute legal, financial, tax or property advice. Prospective homebuyers should obtain appropriate professional advice based on their individual circumstances before entering into a property purchase or mortgage agreement.

 

MAKING INFORMED DECISIONS & BUYING WITH CONFIDENCE

Buying a home is one of the most important financial decisions you may make. Whether you are purchasing your first home, upgrading to a larger property, buying an investment property, or building a home for your family, understanding the homebuying process can help you make informed decisions and avoid costly mistakes.

The DCANS Group Limited (corporate parent) provides free homebuyer education (paid for elsewhere) designed to help prospective homeowners understand the journey from financial preparation and property selection through mortgage financing, documentation, completion and moving into their new home.

 

A. UNDERSTANDING THE HOME-BUYING PROCESS

A successful home purchase involves several stages. The typical journey may include:

1 Assessing your finances

2 Establishing your homebuying budget

3 Understanding your mortgage options

4 Obtaining mortgage pre-approval

5 Searching for a suitable property

6 Conducting property and title checks

7 Agreeing on the purchase

8 Completing legal and mortgage documentation

9 Paying applicable fees and taxes

10 Completing the purchase and mortgage registration

11 Taking possession of your new home

 

Understanding each stage can help you plan properly and know what to expect before making a financial commitment.

 

B. KNOW WHAT YOU CAN AFFORD

Your homebuying budget should not be based solely on the maximum mortgage amount you may qualify for. Consider your:

1 Monthly income

2 Existing debts

3 Household expenses

4 Mortgage repayment

5 Insurance

6 Property-related taxes and charges

7 Maintenance costs

8 Utilities

9 Transportation

10 Emergency savings

11 Other financial commitments

 

A sustainable home purchase should leave you with sufficient income to meet your normal living expenses and maintain an appropriate financial reserve.

The amount you can borrow is not necessarily the amount you should borrow.

 

 

C. UNDERSTAND YOUR MORTGAGE OPTIONS

A mortgage is a long-term financial commitment. Before accepting a mortgage, understand the key terms. Pay particular attention to:

 

Loan Amount

The amount being borrowed to finance the purchase.

 

Interest Rate

The rate charged on the outstanding mortgage balance.

 

Mortgage Term

The period over which the mortgage is scheduled to be repaid.

 

Monthly Repayment

The amount you are required to pay according to the agreed repayment schedule.

 

Deposit

The portion of the purchase price you contribute from your own funds.

 

Fees

Understand all applicable arrangement, valuation, legal, registration, insurance and other charges.

 

Early Repayment

Check whether you can repay the mortgage early and whether any applicable charges or conditions apply.

 

Default

Understand what happens if you miss repayments or breach the mortgage agreement.

 

Always read the mortgage agreement and related documents carefully before signing.

 

 

D. GET PRE-APPROVED BEFORE SHOPPING

Mortgage pre-approval can help you understand your potential financing capacity before committing to a property. A pre-approval assessment may consider factors such as:

1 Income

2 Employment or business activity

3 Existing financial commitments

4 Credit history

5 Deposit available

6 Property value

7 Proposed mortgage term

8 Ability to make the required repayments

 

Pre-approval can help you focus your property search on homes that fit your financial circumstances.

 

Remember: Pre-approval is not necessarily the same as final mortgage approval. Final approval may remain subject to satisfactory property, legal, valuation and documentation checks.

 

 

E. CHOOSE THE RIGHT PROPERTY

Buying a home is more than choosing a beautiful building.

 

Consider:

1 Location

2 Accessibility

3 Roads and transportation

4 Schools and healthcare

5 Utilities

6 Security

7 Drainage and flooding considerations

8 Neighbourhood development

9 Future infrastructure

10 Property condition

11 Resale potential

12 Rental potential where relevant

13 Planning and permitted use

 

Visit the property and surrounding area at different times where practical. Think about how the property will meet your needs today and in the future.

 

 

F. CONDUCT PROPERTY DUE DILIGENCE

Never rely solely on an advertisement, brochure or verbal representation when purchasing property. Before completing a purchase, appropriate due diligence should be undertaken. This may include checking:

1 Ownership or title

2 Land documentation

3 Site plan

4 Boundaries

5 Encumbrances

6 Existing mortgages

7 Litigation or disputes

8 Planning requirements

9 Development permissions

10 Seller's authority to sell

11 Property address and location

12 Consistency between physical property and documentation

 

Professional legal and property advice can be particularly important when purchasing land or property in Ghana.

 

 

G. UNDERSTANDING THE LAND DOCUMENTATION

Property transactions can involve different forms of land documentation. Depending on the property and circumstances, documents may include:

1 Land certificate

2 Indenture

3 Site plan

4 Lease documentation

5 Assignment

6 Sale and purchase agreement

7 Search report

8 Mortgage documentation

9 Other supporting land documents

 

Do not assume that possession of a document automatically means that all legal requirements relating to the property have been satisfied. Have the relevant documentation reviewed by an appropriately qualified professional.

 

H. UNDERSTANDING THE PURCHASE AGREEMENT

Before signing a purchase agreement, understand exactly what you are agreeing to. Pay attention to:

1 Purchase price

2 Deposit

3 Payment schedule

4 Completion date

5 Seller's obligations

6 Buyer's obligations

7 Property description

8 Fixtures and fittings

9 Conditions of sale

10 Default provisions

11 Termination provisions

12 Completion requirements

13 Costs and taxes

14 Dispute resolution

 

Do not sign a document you do not understand. Ask questions and obtain independent legal advice where necessary.

 

I. BUDGET FOR MORE THAN THE PURCHASE PRICE

The purchase price is not always the only cost associated with buying a home. Depending on the transaction, you may need to budget for:

1 Mortgage-related fees

2 Valuation

3 Legal fees

4 Land search

5 Registration

6 Stamp duty

7 Insurance

8 Taxes

9 Property inspection

10 Moving expenses

11 Renovations

12 Repairs

13 Utility connections

14 Other transaction-related costs

 

Ask for a clear breakdown of the costs that apply to your particular transaction.

 

 

J. UNDERSTANDING YOUR MORTGAGE REPAYMENTS

Before taking a mortgage, understand how repayments are calculated. Your repayment may depend on:

1 Amount borrowed

2 Interest rate

3 Mortgage term

4 Repayment frequency

5 Interest calculation method

6 Fees or other charges

 

A longer mortgage term may reduce the scheduled periodic repayment but may increase the total interest paid over the life of the loan. A shorter term may result in higher periodic repayments but can reduce the repayment period. Ask the lender for a repayment schedule before committing.

 

 

K. PROTECTING YOUR PROPERTY

Insurance may be an important part of a mortgage arrangement. Where required, appropriate property insurance can help protect against specified risks covered by the policy.

 

Understand:

1 What is insured

2 What is excluded

3 The insured amount

4 Premiums

5 Policy duration

6 Claims procedure

7 The lender's interest in the policy where applicable

 

Insurance does not eliminate every property or financial risk, so read the policy carefully.

 

 

L. UNDERSTAND YOUR TAXES AND STATUTORY COSTS

Property transactions may involve taxes, duties, registration charges and other statutory costs. The amounts and obligations can depend on the nature of the transaction, property and parties involved. Before completing your purchase, ask your legal, tax or property professional to identify the applicable costs.

Do not assume that all taxes and charges are included in the advertised property price.

 

 

M. UNDERSTANDING YOUR RESPONSIBILITIES AS A HOMEOWNER

Homeownership comes with ongoing responsibilities. These may include:

1 Mortgage repayments

2 Property insurance

3 Property maintenance

4 Utility bills

5 Applicable property taxes and charges

6 Repairs

7 Security

8 Compliance with applicable planning and property requirements

 

Budget for ongoing ownership costs rather than focusing only on the initial purchase.

 

 

N. WHAT HAPPENS IF YOU MISS A PAYMENT ?

Missing mortgage repayments can have financial and contractual consequences. Depending on the mortgage agreement and applicable law, consequences may include:

1 Arrears

2 Additional applicable charges

3 Default interest where lawfully applicable

4 Formal notices

5 Credit-related consequences

6 Enforcement of security in accordance with applicable law If you anticipate difficulty making a payment, contact your lender as early as possible.

 

Do not ignore mortgage arrears.

Early communication may allow the parties to consider any lawful options available under the mortgage agreement and applicable law.

 

 

O. UNDERSTANDING MORTGAGE DEFAULT AND ENFORCEMENT

A mortgage is secured against property. This means that continued failure to meet contractual obligations can potentially lead to enforcement against the secured property. Before signing a mortgage, make sure you understand:

1 What constitutes default

2 How much time you have to remedy a default

3 How notices are delivered

4 What happens after a continuing default

5 The lender's enforcement rights

6 Your rights during the enforcement process

7 How the property may be realised

8 How proceeds may be applied

 

These provisions should be explained clearly in your mortgage documentation.

 

 

P. THINK ABOUT YOUR LONG-TERM FINANCIAL EDUCATION

Your financial circumstances may change after purchasing your home. Consider potential changes such as:

1 Changes in employment

2 Changes in business income

3 Family changes

4 Education costs

5 Medical or emergency expenses

6 Retirement

7 Interest-rate changes where applicable

8 Property maintenance

9 Inflation and household expenses

 

Maintaining an emergency reserve can help you manage unexpected financial pressures.

 

Q. BEWARE OF PROPERTY FRAUD

Property buyers should remain alert to potential fraud. Before transferring significant funds:

1 Verify the identity of the seller.

2 Verify ownership and authority to sell.

3 Conduct appropriate land searches.

4 Obtain professional legal advice.

5 Verify payment instructions.

6 Be cautious of pressure to make immediate payments.

7 Keep copies of all important documents.

8 Confirm important information independently.

 

Be particularly cautious where someone promises guaranteed ownership without appropriate documentation or due diligence.

 

R. ASK QUESTIONS BEFORE YOU SIGN

Before committing to a mortgage or property purchase, make sure you can answer:

What am I buying?

Who legally owns it?

How much will the property cost in total?

How much am I borrowing?

What will I repay?

What is the interest rate?

How long will I repay the mortgage?

What fees apply?

What happens if I repay early?

What happens if I miss payments?

What security is being provided?

What insurance is required?

What taxes and registration costs apply?

Have I obtained appropriate legal advice?

 

If you cannot answer these questions, ask for clarification before proceeding.

 

 

S. HOMEBUYER CHECKLIST

Before You Start

☐ Assess your finances

☐ Review your income and expenses

☐ Check existing debts

☐ Establish a realistic budget

☐ Build or maintain emergency savings

 

Before Choosing a Property

☐ Research the location

☐ Inspect the property

☐ Review the asking price

☐ Compare suitable properties

☐ Consider future needs

 

Before Making a Commitment

☐ Obtain mortgage pre-approval where appropriate

☐ Conduct property due diligence

☐ Verify ownership

☐ Review land documentation

☐ Obtain legal advice

☐ Understand all costs

 

Before Signing

☐ Read the purchase agreement

☐ Read the mortgage agreement

☐ Understand the interest rate

☐ Understand the repayment schedule

☐ Understand default provisions

☐ Understand early repayment terms

☐ Confirm insurance requirements

☐ Confirm applicable taxes and charges

 

Before Completion

☐ Complete required legal documentation

☐ Complete required mortgage documentation

☐ Confirm payment arrangements

☐ Complete applicable registration processes

☐ Obtain copies of important documents

 

After Completion

☐ Keep mortgage payments up to date

☐ Maintain required insurance

☐ Maintain the property

☐ Keep important documents safely

☐ Monitor your finances

☐ Contact your lender promptly if difficulties arise

 

T. HOMEOWNERSHIP IS A JOURNEY

Becoming a homeowner does not end when you receive the keys. Successful homeownership requires continued financial planning, responsible property management and understanding your obligations.

The more you understand before buying, the better prepared you can be to manage your home and mortgage after completion.

 

BUY WITH KNOWLEDGE. BORROW RESPONSIBLY. OWN WITH CONFIDENCE.

DCANS Property Group Helping prospective homeowners understand the homebuying and mortgage journey.

Part of The DCANS Group Limited

 

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