When the time comes for an individual or family to purchase a home, they may be wondering how they can get a home loan. It is unlikely that the person or party will be able to pay for the entire house with cash. Yet, if they are able to come up with ten percent or a greater amount of the final sale price of the home in cash or a housing subsidy, possess a good credit rating, and have sufficient extra income to make the monthly payments, then they ought to be capable of getting a home loan for the remaining approximately ninety percent of the balance.

Mortgage Originator Services

After a person or party has signed an offering contract to buy a house, they will be given a specific and limited amount to time to come up with the home loan. The fastest and most efficient means of accomplishing this lies in a mortgage originator. Mortgage originators keep all of the information on hand regarding the various and competing home loan packages that the banks are offering. They are capable of suggesting to purchasers which bank and package might best line up with their particular financial profile. More importantly, a reputable mortgage originator will package and submit the purchaser’s application to a variety of lending institutions at once, enabling the prospective purchaser to swiftly contrast the resulting offers for the lowest interest rate, as well as the most attractive total loan deal. Since these mortgage originators are compensated by the banks for brining them business, this useful service does not cost the home buyer a penny.

Bank Requirements for Offering a Home Loan

In advance of a bank approving a loan for the use of buying a house or other property, the institution will require documents in order to review a few things. These items and accompanying documents include the following:

* The employment history and record, as well as the disposable (after deductions) income of the potential home purchaser, in order to determine if he or she will be able to afford the home loan payments on top of other existing obligations, including car repayments, living expenses, and tuition expenses. The National Credit Act requires lending institutions to be extremely careful when making any sort of loan to ensure that the borrower will not become over-indebted as a result of the loan.

* The credit report of the prospective home purchaser, to learn if he or she is in the reliable habit of paying their bills on time and if there are any judgments for outstanding bad debts.

* The property’s present market value, to guarantee that proper security exists for the loan for which the potential purchaser has made a request. In general, a bank would be happier if the property was valued at a greater amount than the loan amount requested at the beginning, and if it was projected to increase with time. Because of this, it proves to be much more challenging to obtain a loan in any locale where the values have been declining or simply staying the same. This is true even assuming that the potential purchaser has a terrific credit history, as well as a high disposable income.

* The presence of a good deposit. Banks are always more satisfied if a potential home purchaser is able to put down a full ten or twenty percent deposit, since it demonstrates that the purchaser is sufficiently committed to the purchase to tie up a portion of his or her own capital. A deposit also helps to guarantee an appropriate loan to value (LTV) ratio – this signifies that there should be significantly greater value inherent in the property than the amount which was loaned by the lending institution.

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

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