100% home loans

If you are like hundreds of South Africans each year who want to buy their own home, you know that the first hurdle to realizing your dream is getting that first home loan. It is not easy, but it is not an insurmountable hurdle either. People successfully achieve their dream to buy a home every day and you can too. Just follow a few easy steps to getting that first loan.

The first thing you want to do is make sure that you are not up to your ears in bills. The bank or savings and loan is going to want to be sure that you can pay your loan. If your bills are a substantial portion of your monthly income, you could be a risk. So you want to get rid of some of that debt. In the months leading up to your decision to buy a home, you can pay more on your bills to pay down the principles. Try to avoid charging much on your credit cards. Save your money. Don’t go out as often. Quit smoking and other expensive habits. You want to do everything possible to ensure that your savings and income are well above your monthly debt.

How stable is your employment? The loan officer is going to want to see that you have the ability to make your payments. Have you been at your current job for years or just a few months? Changing jobs right before purchasing a home is a bad idea, unless, of course, you’re moving into a very high-paying position with a lot of job security. If you are self-employed, put together a portfolio of the work you do and an explanation of how you manage to attract new work on a regular basis. You want to give the loan officer confidence that you will have a steady income throughout the duration of your mortgage.

Consider working with a bond agent. A bond agent can help you fill out your loan application and help you to decide which mortgage options are best for you. And more importantly, the agent can help you select the options that will give you the best chance of getting your loan approved. These people have contacts in the lending world and they can pull strings for you if necessary.

Finally, you want to be sure that your credit is good. Although there are ways to get a loan when your credit score is down in the dumps, it can be quite difficult. Make sure that you are paying your bills on time and that you do not have any loans in default. Also, make sure that you have the required car insurance since even this can show up on your credit report.

Getting a home loan is not sorcery. It is just a matter of common-sense and being organized and informed. If you sit down and plan for what you want and put together a strategy for how you are going to get there, purchasing a home can be a rewarding experience, especially when you find yourself snug in your new home.

For further information contact Morne Prinsloo on 011 327 4489 or email morne@mortgagepluscc.co.za

If you would like to know more about your home loan services and mortgage requirements please phone the Mortgage Plus Head Office on:

Attached please find the Home Loan Application Form * - Short Home Loan Application Form

0861.11.11.93

info@mortgagepluscc.co.za

www.mortgagepluscc.co.za

Get your credit turned around!!!

As a South African resident, knowing the meaning of blacklisting and how it can effect you financially is very important. Here are few tips you can follow to stay out of the trap and to be able to cope should you find yourself blacklisted.

When you are blacklisted, you are put on a list of people who have been determined to be a credit risk because of past nonpayments of financial obligations. Don’t worry, though. This is not a personal blemish, but a business one. Lots of companies and even wealthy businesspeople end up on the list. It just means that there has been a problem that raises concern about credit worthiness. Actually, it has been reported that as many as twenty-five percent of all South Africans are on a credit blacklist.

People often overlook the fact that they are on the verge of financial problems by not being organized and keeping up with their obligations. Missing payments, late payments and letting loans go into default are all ways that you can get yourself put on a blacklist.

So you may be thinking that if you are on a credit blacklist, your dreams of owning a home are dashed. While it will be much more difficult to mortgage a home when your credit is in the gutter, there are things you can do.

First, make sure that you are currently able to meet your financial obligations. What was the cause of getting put onto the blacklist to begin with? Were you out of work? Too many bills piling up? Procrastinating to pay your bills? You first need to make sure you have taken care of your problems and that you are back on your feet before adding new financial obligations to your plate.

After that, you will probably have to pursue alternate avenues for getting your new home financed. The banks are going to look at your credit score, see that you are on the blacklist and slam the door in your face. And it can take years to get your credit back to a point where a bank will take a chance on you. Ask relatives to borrow money. You may have a wealthy uncle or aunt who could put up the capital. The benefits of borrowing from a relative is that they know your circumstances better than the loan officer at the bank, and they know whether you really are capable of paying back the loan.

Another option is to seek financing from a private investor. These are groups of private individuals who collectively pool their money to offer funds or investments in return for the interest made on the loan. Private investors do not have to follow all of the strict requirements that the banks have to follow, but they also sometimes require that you own a high percentage of equity in your new home if you have a poor credit score. Consequently you may have to pay a higher premium on your mortgage insurance.

Once you secure a loan from a private source, make sure you pay back regularly. There is nothing that will put you deeper in the hole like burning a creditor who took a chance on you while you were down and out. Any future lender will look at this and see that your claims that you were just going through a bad spell were baloney. You just don’t pay your bills.

Finally, you need to get your credit turned around if you want to get off of that blacklist. This can take years, and so it involves a certain degree of acceptance. You just have to plug away at paying your bills and don’t think about it too much. Eventually one day you will realize that you have been a good payer of all your obligations and that you are finally off of the bad credit list. This is a welcome feeling, especially when it sneaks up on you.

For further information contact Morne Prinsloo on 011 327 4489 or email morne@mortgagepluscc.co.za

If you would like to know more about your home loan services and mortgage requirements please phone the Mortgage Plus Head Office on:

Attached please find the Home Loan Application Form * - Short Home Loan Application Form

0861.11.11.93

info@mortgagepluscc.co.za

www.mortgagepluscc.co.za