Everyone dreams of buying a home and typically will save for a while in order to secure a down payment. Traditionally once you are ready to purchase your first home you will approach a financial institution for a mortgage. Then you would wait to hear if you have been approved for a mortgage. Things are not necessarily that easy anymore, banks are becoming more difficult to secure a loan from and there are many different banks offering various mortgages rates. The whole process can be confusing; this is why a Bond originator can be helpful.

Bond originator provide a service to you in applying for a mortgage loan. It is their job to assist you with the process of securing a home loan and get you the best possible rate. A Bond originator actually simplifies the process by acting as the liaison between you and the financial institutions.

Agencies that act as Bond originator’s work for you but get paid by the bank. Their services are free to you the applicant and you never pay them any money. The way they get paid is through the bank when a bond for a new home has been granted.

The originator works directly with you, the applicant, and handles all the leg work associated with securing a bond. These professionals deal with financial institutions on a regular basis. They are educated in all the options that may be available to you the loan applicant.

Since they deal with the banks on a regular basis they have the power of the negotiator and therefore provide you with leverage that you as an individual would not have. Consequently the banks are more willing to work with them since they represent more than just your mortgage. They basically have the advantage of being more than just a single person dealing with the bank.

This leverage can be utilized to provide you with a loan that has a better rate and perhaps shorter-term than you would have qualified had you not used their service. Utilizing an originator to secure your mortgage is a hassle free way of securing a loan and assuring yourself that the terms are the best possible. These professionals can evaluate your financial situation and determine what you may qualify for and what they feel they can pitch to the bank.

Bond originators are becoming the most popular method of applying for a loan for a new home. It is believed that this will eventually be the only way to apply for a mortgage. Under tough economic conditions banks become more and more selective and provide mortgages only to the absolute best applicants. This does not mean that a home loan is out of reach of the average person. But rather that the bank needs more evidence of your ability to pay. The bank originator will convince the bank that you are a viable candidate for a mortgage. If they don’t secure your mortgage they don’t get paid. These are the reasons why you should seriously consider using a Bond originator when you get ready to buy a new home.

CONTACT US
For more assistance with regards to Applying for Home Loan Finance .
Email: morne@mortgagepluscc.co.za
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Credit scores are one of the most important factors that lenders consider when someone applies for a home loan. An individual’s score is considered to be an indicator of his or her creditworthiness. It goes without saying that the higher your credit score, the more likely it will be that you get approved for a home loan.

You can use a minimum score of 640 as a guideline that will determine if you will qualify for a mortgage or not. If it’s lower than 640 then you will have a hard time getting approved for a home loan.

Factors that are used to calculate a person’s score include: the amount of credit you have currently available, your history of making payments on time or not etc.
If your score is low at the moment it will be better to try and improve your score before applying for a mortgage loan.

One of the best ways to improve your credit score is to pay your accounts on time. A history of prompt payments will show lenders that you take your debts seriously.

Avoid taking out too much credit. For the best credit rating try to have only one or two credit cards and one or two major debts (like your mortgage and car) If you have a lot of credit cards, try to make sure that you use no more than 50% of your credit.

For example if your credit card has a limit of R10 000, make sure that you don’t use more than R5 000. If you can get it lower than 50% it will be even better. What’s important to remember is, the lower the percentage of your total credit limit you are using, the better.

It’s not uncommon for errors to show up on credit reports, so be sure to check your credit score on a regular basis.