Mortgage pre-qualification – why it can help you close the deal

In the property game there are two ideal scenarios. The first is a serious seller who is happy to price their property competitively. The second, a serious buyer with a clear idea of what they want. In these scenarios the chances of matching buyer and seller is strong.

But what about the rest of the market? Here it takes a little bit extra, and a pre-qualified mortgage application in the hands of the potential buyer could make the difference.

Morne Prinsloo, Chief Executive Officer at Mortgage Plus Bond Originators, said it could be this reassurance, provided in the form of an endorsed certificate from a recognised mortgage originator or similar accredited financial services provider, which sways the seller or in a case where it looks like competing offers may shortly be made for the same property, he said the pre-qualified certificate could clinch the deal for the buyer.

Historically most banks were prepared to do a formal home loan pre-approval, which basically guaranteed that the finance would be made available to the buyer on request.

“The banks have moved away from the pre-approval service because it requires them to go through a complete mortgage application process with very little client loyalty when taking up the bond. Historically the pre-approval took as long as an application. This resulted in duplication and bottlenecks in approving legitimate bond applications and so the banks stopped this service,” said Prinsloo.

To aid and inform homebuyers Mortgage Plus Bond Originators introduced formal and certificated pre-qualification. This is not the absolute guarantee offered in a pre-approved scenario, but it does detail the financing options available to a potential buyer subject to them meeting the bank’s lending criteria. Mortgage Plus uses similar credit scoring models as the banks in issuing its prequalification certificates.

As a result the number of Mortgage Plus pre-qualified clients not being granted a bond when formal bank application is made, is minimal. Pre-qualification really does give both the buyer and the seller peace of mind.

For buyers there are a number of advantages. First, it introduces them to the process of applying for a mortgage. This is particularly useful for first-time homebuyers. They get a clear indication of what they will be required to show the banks on formal application, and do not feel intimidated when the formal application gets underway. Buyers also get a clear view of their budget range and can house hunt accordingly. Once they have found their house, the process of originating a mortgage for them is quicker as the bulk of the required information is already on hand.

For the seller a pre-qualified mortgage certificate indicates a serious buyer. It indicates the buyer’s ability to secure funding. The pre-qualified buyer will in all likelihood, be granted finance swiftly.

Many sellers lock themselves into a sale and then wait for the buyer’s finance to be approved. If finance is not granted, the chances are the serious buyers have moved on and the seller has to start the marketing of their property from scratch.

Mortgage Plus has invested a significant amount in the technology and infrastructure required to provide pre-qualification certificates.

“Our team can generate a certificate in no time at all, and we’d be happy to assist any buyers with the process,”

Among the clutter of speculative offers to sell, and less than serious buyers, the pre-qualified certificate sends a clear signal of intent.

That might be all it takes to clinch the deal.

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

Buying A House Of Your Own: Is It The Right Thing To Do?

If you have been a rent payer for most of your life, you have probably started thinking about buying a house of your own. There are very few reasons not to do so.

Apart from being an owner instead of a renter, you will be able to do with the house whatever you want to. You can paint and decorate it just the way you like it and there are property tax deductions, which you can only be eligible for if you are a first time homebuyer.

Finding the perfect home is not always easy. Don’t be rushed when searching for your dream house. Most house searches begin on the Internet and this has become a very appealing way of going about for most first time buyers. Even though you should take some time considering the where, cost, how etc, it is advisable to take a step in the right direction as soon as possible. If you don’t put an offer on a home within the first few days, chances are somebody else will be living in your dream house.

If you go house hunting, make sure you take your digital camera with. When you see a lot of houses in a short period of time, you tend to forget which one had the bigger kitchen or the extra bedroom. Take pictures of everything inside the house, as well as the outside. Take pictures of the garden and the street and make sure you get a shot of the neighbourhood.

Take a good look at each house’s design and rooms. Are the rooms spacious enough for your needs? Write down the different pros and cons of each home and remember to write down the price that the house is for on the market. Sit down and decide what you are willing – and able – to pay for a house in each category. If it is really important to you to have a house near a school or the parks, decide what you are willing to pay for that house. Most of the times, these homes are very sought-after and their prices tend to be quite a bit higher than those of houses outside the immediate area of schools.

It is best to see a maximum of 5 houses a day. You might get irritated and tired if you see too many homes a day and this might affect your judgement and choice. After a few days’ search, you will want to go back to the first houses you saw and start over again. This time you will take a closer look at the 3 or 4 houses that you considered being the most appealing.

A few days of house hunting will sharpen up your senses and you will have a better idea of exactly what it is that you want in a home and you will also realise which features you are willing to live without, and which you are willing to pay more for.

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