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Tag: Guaranteed home loan approval

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First Time Home Buyer – Guaranteed Loan Approvals

Monday, June 28th, 2010 | Home Loan Tips for South African's | Administrator

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First Time Home Buyer

First time buyer loans are rather straightfoward–they are for persons who are buying a home for the first time. Equity loans, on the other hand, are loans that are issued to borrowers who already own a home. The equity of the home is put up as collateral against the loan, meaning that if the buyer fails to meet expected payments, then he is at risk of losing his home.

Thus, first time buyer loans are different, since the borrower may not have collateral, such as a home to put on the burner, which is why the lender will consider the value of the home for purchase and use it in the equation to determine if the borrower is qualified for the loan. In other words, if the home purchased has equal equity to the mortgage loan, then the lender most likely will offer the loan.

If the equity on the home for purchase is below the loan amount, then the lender may require a
steeper upfront payment in addition to higher interest rates. The lender may also include guarantees in the contract, meaning that the buyer will agree to certain stipulations, including paying off penalties.

Thus, first time buyer loans are loans offered against potential equity. The house for purchase is the collateral against the loan. The lender will often repossess the home if the buyer fails to make payments.

Therefore, before agreeing to any contract involving large sums of cash, borrowers are
wise to read all details involved in the transition. Few other loans are available for first time buyers.

There is no obligation on your part. If you decide that it is not for you, you simply do not have to accept the offer. You have nothing to lose and everything to gain.

Guaranteed approval. However, this is subject to the following 6 requirements listed below.

1. Satisfactory Credit Record and clear payment profile2. Sufficient Equity In Property (if you are already a home owner)

3. Sufficient Provable Income Affordability

4. No Misrepresentation Of Information

5. Must meet NCA (National Credit Act) requirements. Thus you must be able to afford the loan.

6. Should be able to meet the lender’s deposit and legal cost requirements should you not qualify for cost included financing.

CONTACT US

Speak to a home loan consultant about financing your new property or reviewing your existing mortgage. We are able to assist in lowering your bond repayments and securing attorney discounts.

Complete this short form online
Call us on 011.327.4489
Email: morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za

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Get Your Home Loan Approved – 100% GUARANTEED!

Monday, June 28th, 2010 | Home Loan Tips for South African's | Administrator

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Home Loans – What You Need to Know…

Home Loans: If you have never purchased a home before it can be a daunting proposition. In this economy it can be even more intimidating to think about trying to secure financing.

All that you seem to hear is that financing is very difficult if not impossible to secure these days. However, just because it is scary does not mean that it is impossible.

If you are ready to purchase a home there are ways to get financing, but it is essential that you take the time to learn about home loans before you start to apply for them.

Before you start to apply for home loans you will need to take a solid look at your credit report. To many banks your credit score and history is the most important thing that they look at when they are deciding whether you are a good financial risk.

Your credit report can be listed with one of three reporting agencies. You will want to check with Experian, TransUnion, and XDS independently to be sure that you do not have any inaccuracies or errors on your report.

If you do find a mistake this will take a few months to correct so you want to do this prior to your deadline for receiving financing.

You must also take a very serious look at your budget. You need to understand exactly what your financial situation is and how much you can afford. A safe equation to think about is to take your annual gross income.

Then multiply that by 2.5. This will give you an approximate home value that you can afford. However, be sure that you factor in your monthly expenses like utilities, car payments, and food costs to be sure that you are not overextending yourself.

One way to make purchasing a home a more possible purchase is by putting down a deposit. Banks like to see that you are wiling to invest your own cash into a property as well. This deposit payment will go towards covering different fees like initiation, valuation, and legal fees.

Coming up with a substantial deposit payment can be difficult. Most lenders will give you a 100% home loan, but some ask that potential homebuyers come up with a 10% deposit.

That being said there are many different government programs that can allow you to put down a smaller deposit or that will help guarantee your deposit.

So, before applying for a home loan, think about your situation and ask your mortgage broker for advice. www.mortgagepluscc.co.za

Terms & Conditions

Guaranteed approval. However, this is subject to the following 6 requirements listed below.