Get your credit turned around!!!

As a South African resident, knowing the meaning of blacklisting and how it can effect you financially is very important. Here are few tips you can follow to stay out of the trap and to be able to cope should you find yourself blacklisted.

When you are blacklisted, you are put on a list of people who have been determined to be a credit risk because of past nonpayments of financial obligations. Don’t worry, though. This is not a personal blemish, but a business one. Lots of companies and even wealthy businesspeople end up on the list. It just means that there has been a problem that raises concern about credit worthiness. Actually, it has been reported that as many as twenty-five percent of all South Africans are on a credit blacklist.

People often overlook the fact that they are on the verge of financial problems by not being organized and keeping up with their obligations. Missing payments, late payments and letting loans go into default are all ways that you can get yourself put on a blacklist.

So you may be thinking that if you are on a credit blacklist, your dreams of owning a home are dashed. While it will be much more difficult to mortgage a home when your credit is in the gutter, there are things you can do.

First, make sure that you are currently able to meet your financial obligations. What was the cause of getting put onto the blacklist to begin with? Were you out of work? Too many bills piling up? Procrastinating to pay your bills? You first need to make sure you have taken care of your problems and that you are back on your feet before adding new financial obligations to your plate.

After that, you will probably have to pursue alternate avenues for getting your new home financed. The banks are going to look at your credit score, see that you are on the blacklist and slam the door in your face. And it can take years to get your credit back to a point where a bank will take a chance on you. Ask relatives to borrow money. You may have a wealthy uncle or aunt who could put up the capital. The benefits of borrowing from a relative is that they know your circumstances better than the loan officer at the bank, and they know whether you really are capable of paying back the loan.

Another option is to seek financing from a private investor. These are groups of private individuals who collectively pool their money to offer funds or investments in return for the interest made on the loan. Private investors do not have to follow all of the strict requirements that the banks have to follow, but they also sometimes require that you own a high percentage of equity in your new home if you have a poor credit score. Consequently you may have to pay a higher premium on your mortgage insurance.

Once you secure a loan from a private source, make sure you pay back regularly. There is nothing that will put you deeper in the hole like burning a creditor who took a chance on you while you were down and out. Any future lender will look at this and see that your claims that you were just going through a bad spell were baloney. You just don’t pay your bills.

Finally, you need to get your credit turned around if you want to get off of that blacklist. This can take years, and so it involves a certain degree of acceptance. You just have to plug away at paying your bills and don’t think about it too much. Eventually one day you will realize that you have been a good payer of all your obligations and that you are finally off of the bad credit list. This is a welcome feeling, especially when it sneaks up on you.

For further information contact Morne Prinsloo on 011 327 4489 or email morne@mortgagepluscc.co.za

If you would like to know more about your home loan services and mortgage requirements please phone the Mortgage Plus Head Office on:

Attached please find the Home Loan Application Form * - Short Home Loan Application Form

0861.11.11.93

info@mortgagepluscc.co.za

www.mortgagepluscc.co.za

Home loans for first time buyers

Like many South African, you are probably dreaming about owning your own home but your are intimidated by everything involved in the process. Well, the process is not painless, but it does not have to be a nightmare either. With just a little common sense you can find yourself owning the keys to your new home in no time. Here are some suggestions to prepare you for that adventure.

First, like in lots of areas of life, preparation will get you everywhere. You need to know everything you can about the process so that you can make informed choices each step of the way. Do your research. This is the information age and there is a glut of information online as well as in your local libraries that could fill your time for hours. While you don’t want to become mired in your search for home-buying information, you do want to hit the high points and ensure that you’ve covered all the bases.

Enlist the help of professionals. Real estate is not an area that most people are experts at. There are people who spend their days immersed in every aspect of real estate dealings and they can be a treasure trove of information and valuable advice. Obviously a real estate is beneficial in this regard, but also consider a bond credit agent who can advise you on the financial side of purchasing a home.

You should do everything you can to improve how you look financially. You want to paint a picture of being on solid ground when you have your interview with the loan officer. Let him see that you are a responsible person who saves where you can, and uses your money wisely. Impulsiveness will look bad, as well as the fact that you have little saved up. Everybody face financial hardships, but all too often we just spend our money rather than saving it. If you can show that you have the commitment to squirrel away some extra funds, you can get a leg up on your peers who spend all their money.

Pay down your bills. How are you going to meet a major financial obligation if you are weighed down by other obligations. Before seeking a home loan, you should try to pay down some of your existing debt. This does not mean that you have to be debt-free. But you don’t want to be in a situation where almost all of your money is going to monthly creditors.

Finally, don’t sweat it. Buying a home can be a lengthy process. Try to enjoy it without stressing too much. It will not be the end of the world if you don’t get accepted on your first few attempts at getting a loan. Rejections are just an everyday reality in real estate. Try to learn what credit officers are looking for and make a point to meet those expectations.

For further information contact Morne Prinsloo on 011 327 4489 or email morne@mortgagepluscc.co.za

If you would like to know more about your home loan services and mortgage requirements please phone the Mortgage Plus Head Office on:

Attached please find the Home Loan Application Form * - Short Home Loan Application Form

0861.11.11.93

info@mortgagepluscc.co.za

www.mortgagepluscc.co.za