Here are some useful tips to ensure you have the best chance possible to get a mortgage bond. Gone are the days where you could just go to your bank and have a very good chance of getting a home loan. Here is some info that you should know before applying for a bond.

1.    Appoint a Bond Originator – Its Free

Sometimes all it takes is one aspect of your application to be submitted incorrectly to make an otherwise successful application fail.  Your originator will ensure that your application is 100% which will greatly increase your chances of success. Furthermore this is a free service, it doesn’t cost you a thing.

2.    Be Accurate

Make sure the information included in your bond application is 100% correct. Any mistakes could result in a delay or worse, a negative reply from the bank.

3.    Get a copy of the Title Deed

You would be surprised how often the incorrect Erf numbers, section numbers, door numbers or physical addresses are given by a Seller. Your Agent can apply for a copy of the title deed on your behalf.

4.    Want To Go Direct? Think Again.

The banks are now asking for almost double the information needed for a home loan application than before, and if you think your bank manager has any influence on the outcome of your home loan application – think again!  If you apply direct, and your application fails and then you decide to work through a bond originator thereafter, your failed original application could count against you.

5.    Get pre-qualified

Did you know that your Bond Originator can help you work through a pre-qualification process? This will prevent a bank declining your application just because you failed to qualify for a loan and then had to arrange for another party to be added to your application after submission.

6.    Know Your Credit Rating

Did you know that you are entitled to receive all the information on your credit profile? You can get this information free once per year. It is always a good idea to “check” your  profile BEFORE starting the buying process.

You can do this through Experian 0861 105 665 or Transunion (commonly known as ITC) on 011 214 6000

7.    You’re Blacklisted & Didn’t Even Know It!

With the implementation of the National Credit Act came transparency across all credit providers. It just takes one inadvertent late payment on a shopping card to affect your credibility rating (and often you don’t even know that this is the case). This is common and in most cases bears no reflection on your credit reputation! Don’t despair, your bond originator is trained to help you clear your record and will then help you apply when you have the most chance of succeeding.

8.    Respond Quickly

Your application will require you to be ready to supply all documentation asked for and to be ready to provide further information when requested from the bank.

If you would like us to arrange a free consultation with a Bond Originator with a good track record see below details.

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

Its always a good idea to find out how much mortgage loan you qualify for before making an offer on an home , banks typically base this on your income and your current monthly expenditure which includes living expenses and debt repayments.

Before the implementation of the National Credit Act (NCA) in June 2007 banks and other mortgage lenders typically would calculate a bond based on payments of not more that 30% of your gross monthly income. In the case of a joint purchase they would look at 30% of the combined gross incomes.

This methodology wasn’t overly concerned with your other debts as the banks were comfortable that they had a first claim on any income and the debt was secured by a mortgage over immovable property.

Since the introduction of the NCA , banks and other mortgage lenders need to evaluate the prospective borrower’s ability to repay the proposed bond. They need to take into account all of your expenses and all your other debts before determining how much disposable income you have to service a bond. The result of this is that since the NCA was introduced people typically are qualifying for much lower mortgage amounts resulting in fewer home loans being granted sine June 2007.

Here are a few tips to maximise the amount you qualify for:

• Prepare a budget and evaluate your monthly expenditure, eliminate all non-essential and luxury items
• Always try and pay your debts on time , if you have a problem making a particular payment speak to your creditors
• Make a list of all you debt and rank your debt by interest rate starting with the highest to the lowest. Pay off the highest cost debt first by making additional payments, once it is settled move on to the next highest and so on.
• Because of the stricter mortgage lending requirements it is important that you have a substantial deposit when applying for a bond. If you don’t have any savings available consider setting up a savings/investment plan after settling any debts.
• Find ways to increase your income , ask your boss for a raise , work overtime or consider getting a second job – the more you earn the more bond you will qualify for
• Find out whether your employer offers a housing subsidy to employees
• Before applying for a home loan check your credit score to make sure that there are no negative items recorded against your profile. You don’t want the bank/mortgage lender to be the one to tell you about it. If there are any adverse comments take the necessary steps to correct it

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