For every individual there will inevitably come a time in their life when they will look to buy a house or property. For many this process will be a confusing and overwhelming endeavour…

However, it does not need to be an unpleasant experience. By gaining a little knowledge about the processes and administration, involved one can make sure they can secure the house of their dreams. An individual looking at buying a home should strive towards their goal but not rush or make harsh decisions during the process.

People will tell you to buy property as soon as you can, and seeing that property prices are constantly growing there is definitely truth in this statement. One should however remember that we live in a world of opportunity and that you should not be pressurised into making an offer on a property. There will be more great deals on the market, so do not be pressurised by a real estate agent or property owner when looking to buy a house.

Make sure your credit history is as clean as possible. This will ensure that you will get the best interest rate and this will help persuade the bank to approve your application. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover. If you have not bought anything on credit, you should look at opening a clothing account or cell phone contract to start building a credit record.

Never over-extend yourself when buying your first property (or anytime in your life for that matter) as this could lead to a financial crisis later in life. If you are set on buying a house but cannot afford the home of your dreams quite yet, rather opt for an entry-level property at first. This will allow you to save money and eventually put yourself in a position where you can buy the house of your dreams instead of being stuck with a “second best” property that crippled you financially.

Before you go house hunting, get a pre-approval from Mortgage Plus Bond Originators – 0861 1111 93. This will save you the grief of looking at houses you cannot afford and will put you in a better position to make a serious offer when you do find the right house. It is seriously advisable to obtain professional help, in the form of a real estate agent. A deposit is generally put down when purchasing a property, generally somewhere between 5 – 10% of the sale price. Sometimes loans can cover 100% of the value of the property and sometimes even more than 100% in the case of First Home Loans. Speak to a Mortgage Plus Home Loan Expert regarding the different home loan options from all the financial institutions. Home Loan Calculators : Affordability Calculator, Bond Status Calculator, Increased Instalments Calculator , Minimum Income Calculator , Monthly Payments Calculator

Look for a reputable estate agent (or agency) and allow them to do their job, they will look to secure a deal that is best for you. A real estate agent will ensure that you will be signing a comprehensive document, which does not have any hidden loopholes or unnecessary costs. Real estate agents deal with this process on a daily basis and will be able to navigate it as efficiently as possible.

It is essential that you do your homework when signing a offer to purchase for a property. By gaining, an insight in regards to what other properties in the area have recently sold for, you can ensure you place a competitive offer.

With all of this said, you should not rule out the option of renting straight away. For an individual who intends on travelling or changing jobs in the visible future, buying a house might not be the best choice. It may be beneficial to rent a property and save your unused funds towards a deposit on a house in the future. This will give you greater financial freedom and will allow you enough time to search for the right property for you.

If you would like to speak to a Professional Mortgage Specialist about your lending requirements, please phone Mortgage Plus Bond Originators on:

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za

Why you need to motivate your home loan application.

Well it is quite simple.  A motivation is usually provided to highlight or explain anything about your homeloan application that falls outside what would be considered a “normal” application, or even when it you feel it necessary for the bank to have a clearer understanding about you the prospective client and your situation.

For example, if you have finished or are finishing your monthly car repayments now, or in a couple of months’ time, it is important to supply this information in the home loan motivation with the necessary proof to establish the your true and realistic affordability.

Another example may be if you are  a rehabilitated insolvent. In this instance it is necessary to supply a full explanation regarding the circumstances that resulted in the insolvency as well as a copy of the certificate of rehabilitation and a copy of the final liquidation and distribution statement reflecting details of all of your creditors. A mortgage origination consultant would, however, use a motivation whenever they feel it is necessary to highlight positive attributes about the you as their client and the property and to remove any negative attributes such as past adverse credit score and sentiment.

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