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Our Mortgage Experts Specialises in First Time Home Buyer Loans, New Home Loans, Building Loans, Further Home Loans, Bond Switches and Mortgages throughout South Africa. Click Here to go to The Mortgage Plus Website.
We offer a wide range of advice on different home loan options - 0861 11 11 93*
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Looking For The Best Mortgages in South Africa?
There are very few people who can afford to buy a home outright and this is why home loans are so important. If you are considering purchasing a property you will need to ensure that you understand what homes loans are and the steps you need to take to ensure that you get the best possible deal when applying for one of them.
The Size of your Home Loan
Before you start searching for homes in your area you will need to see what type of loan you are eligible for. Banks will usually approve you for a loan by taking 30% of your income into account in order to determine whether your salary is large enough to accommodate the repayments on the loan. The larger this income is, the more you will be eligible for. If you want to apply for a larger loan, you can always apply with your partner’s income for a joint loan.
Putting down a Deposit
When applying for home loans you will need to decide what type of loan you are going to apply for and whether you are going to put down a deposit. Banks in South Africa are now offering 100% loans which means there is no deposit required but you will probably be expected to pay a higher interest rate if you decide to choose this option.
What is a Loan Term?
A loan term is the period during which you will pay off the loan. The loan term will affect the interest you pay on your loan and it will determine the rate at which you will be expected to pay the loan off. The longer the loan term is, the lower your monthly premiums will be but you must remember that most banks will give you a maximum term of 30 years and even then you might need to apply for a life policy.
Choosing your Property
Once you have an idea concerning the amount you are eligible for you can then begin searching for your dream home. The location of this home should be carefully considered and you will need to take a few factors into account before you set your sights on a property, including the location of schools in the area, whether the property is close to your work and whether the location is safe and secure.
What do you need to apply for a Loan?
In order to apply for home loans you need to ensure that you meet all of the requirements as these can be quite strict. When applying for a loan you will need to be at least 21 years old, permanently employed for 6 months (or self employed for at least 2 years) and have a clean credit history. If you meet all of these criteria you will then need to be aware of the documents that will have to be submitted when you apply for the loan.
Bond Originator Lending a Helping Hand
Applying for a home loan can be a lengthy and difficult process but you can make this entire experience a simple and enjoyable one by contacting a bond originator that will help you through it. Bond originators will not only help you choose the right bond but they will also assist you in getting all of the correct paperwork in order to ensure that your application is submitted and approved without a delay.
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
What is a pre-approval certificate?People interested in buying a house can approach Mortgage Plus Bond Originators who will check their credit, verify their income and then assures them that they would be able to get a loan up to a certain amount. They receive a pre approval certificate for the specific amount, but unfortunately a pre-approval is still not a guarantee that the loan will be provided, taking into consideration that a pre-approval is valid for 90 days and lender’s finances (income and expenses) as well as interest rates might change during this time.
Why do you need to be pre-approved?
A pre-approval certificate can be worth a fortune for home buyers. Most real estate experts will advise home buyers (especially first-time buyers) to apply for a loan before shopping for a home. By getting a pre-approval for a home loan you will speed up the buying process and with a pre-approval certificate in the hand, agents and sellers will take you seriously when knowing that you are financially secured. The pre approval gives a guarantee to the seller by ensuring you a good standing in the market as a honest buyer with credibility.
Advantages of pre-approvals include the following:
- Saving you time
Today, time is money. A pre-approval can save you a lot of time in many different ways. You will not waste your time by looking at homes you can’t afford. - Narrowing Down your Home Search
It makes your task of house hunting easier and faster by eliminating houses bigger than your budget. The time you save can rather be spend on checking the details of the houses that you can actually afford. - Adding Bargaining Power
A buyer with a pre-approval is usually more favored by the sellers than a buyer without one. Sellers are more likely to accept your purchase offer, putting you ahead of other buyers, increasing your bargaining and negotiating power. By knowing that you are really serious about buying the home, a seller gets some peace of mind and might offer you some discount or additional benefits to seal the deal. - Quicker Loan Disbursal or Processing Period
Buyers with a pre-approval will have the benefit of a faster loan processing period, again saving you some valuable time. The lender can expedite the processing procedure of your loan application without a window period and immediate instructions for appraisal, smoothing down the home purchase process.
Loan approval is generally the longest contingency to fulfill in the home buying process, therefor a pre-approval certificate is advisable. The certificate will give you the confidence you will need for negotiations with the seller as well as the real estate agents.
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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