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How to get a home loan approved | Home Buyers

Tuesday, March 22nd, 2011 | Home Loan Tips for South African's | Administrator

How to get a home loan approved

Even though property prices have soared in recent years, you can probably still obtain a home loan to buy your own home if you are earning a regular salary. Here are some ways that you can get that home loan you need to become a home owner without needing an excessively high income.

Look For Special Home Loan Deals

Keep an eye out for special deals offered on home loans by the various banks in South Africa. There are good home loan products specially designed for first time home buyers who do not have huge incomes or cash on hand to pay deposits on the home loans. Always try and negotiate with the bank on a better interest rate as even a small decrease on your interest rate can make quite a large difference on your monthly repayments. For a family on a tight budget even a R100 less per month spend on your bond can make a big difference.

You can often bargain with a home seller to get the price down to something that you are more able to afford so do not just accept the first offer as something you cannot afford. Also keep in mind that many of the cheaper properties are not always advertised so drive around in your area and look out for the “For Sale” signs in front of houses. Do this especially on sundays as this is the day most sellers choose to place their homes on show.

Increase Your Home Loan Repayment Period

You do not have to take your home loan over a 20-year period but you could stretch it over a 30-year period. This will cause your monthly repayments on the home loan to be lower which will allow you to afford a higher loan amount. On the negative side this kind of home loan will cost you more over the long run in the form of the interest you will pay.

Get a Joint Home Loan

If you cant afford a home loan on your own salary consider buying a home with a partner. Instead of looking at your personal income as a measure for calculating an amount you can afford on a home loan, banks will look at the joint gross income of the two partners buying property together. If your gross income is R4000 and that of the partner is R8000 the bank will calculate the amount that you jointly qualify for on the combined R12000 income. The bank usually will not give a home loan on more than 30% of the gross income so jointly you should be able to get a loan for R400000. If you decide to take this option make sure that you sign a legal agreement with the partner on the amount each will pay on the repayments of the home loan and how the proceeds should be spilt when the home is sold in the future.

Enter The Market With a Lower Value Home

A common mistake prospective home buyers make, especially first time buyers, are that of aiming to high. Only for a hand full of people will their first home be their dream home. It helps to get into the property market first with a lower value home and after a few years, with the increase in value of your property and promotions in your job, you will be able to afford a better home.

Please contact us if you require any further information or would like to apply for finance:

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za

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Why Use A Bond Originator in 2011

Monday, January 3rd, 2011 | Home Loan Tips for South African's | Administrator

What is a Bond Originator?

A Bond Originator offers a 100% FREE SERVICE, to you the home loan (bond) applicant, assisting you with your home loan application through their contacts at all the major banks in South Africa. 60% of all Bonds in South Africa or processed by Bond Originators.

Good advice
Do not be just another application on a bank consultant’s desk. The bond originators “Mortgage Plus” pride themselves in getting up close and personal with our clients, therefore knowing their individual financial situation which can help them to advise the client on which product and which bank to go with. Experience has been their teacher and you can share in these invaluable lessons by using their services.

Regular communication
The consultants are trained to give the utmost service which means keeping you up to date throughout the whole bond registration process. They are also aware that not everyone is informed with the bond financing lingo (i.e. AIP’s, LTV, RTI etc.) and so they keep things as simple as possible so that you know exactly what is going on.

Time saving
When the bond originators receive a bond application, they straight away acquire rate requests from all the banks. From the information they receive back from all the banks they are able to advise the client on which bank and product to choose. For an individual to do the same would be very time consuming for them as they would have to visit each bank separately, fill out application forms at each bank and submit the relevant documentation. With the bond originators we have aligned ourselves, you submit one application and one set of documents and they do the rest for you.

If you are an existing client with a specific bank who has an extensive record of all your past property transactions & your present financial standing, DO NOT fall into an expensive “I want to avoid all paperwork” trap. Spending time in completing a few documents may just be a very sound investment of your time! A long standing relationship with the bank consultant will not necessarily ensure you the lowest possible interest rate. Creating a healthy competition amongst the banks for your business should always be your motto – doing it via our bond brokers will be the most sensible way. At least let the bond broker compete with your bank consultant!

Good rate concessions
Because of the bulk business the bond originators do with the different banks, they have built up a good reputation and are therefore in a good standing with them. Bond Originators submit thousands of home loan applications annually, and because of this they have the power to negotiate a better rate for you, than you would as an individual. Through their systems which are aligned to their operating procedures they are able to give the banks the relevant information to assist them in making informed decisions and to therefore give good rate concessions.

CONTACT US

Speak to a home loan consultant about financing your new property or reviewing your existing mortgage. We are able to assist in lowering your bond repayments and securing attorney discounts.

Complete this short form online
Call us on 011.327.4489
Email: morne@mortgagepluscc.co.za