Pre-Approved mortgages and home loans

It is highly recommended that you get your mortgage loan pre-approved before you start looking for a new home. You will have a better chance of securing a new home mortgage if you are pre-approved, you want to have as many positive advantages as possible when shopping for a new home.

There are a few different types of mortgage loans for types of buyers, those who are not pre-qualified or pre-approved, those who are pre-qualified, and those who are pre-approved. In understanding the appeal of each type of buyer, you need to put yourself in the seller’s shoes. The buyer is a complete stranger who is asking that you remove your home from the market and trust that they can afford to buy it. As the seller, which type of buyer would you prefer:

Not pre-approved
These buyers provide no evidence that they can afford to purchase your property.

Pre-qualified
Pre-qualified buyers have met with a mortgage specialist and discussed their finances; income, expenses, assets and liabilities. The mortgage specialist has given the buyer a letter stating, based on financial conversation, what the buyer can afford.

Pre-approved
Pre-approved buyers have submitted a complete loan application and provided a mortgage specialist with written evidence of income, expenses, assets, liabilities and credit. All information has been verified by a lender. The mortgage specialist has provided this buyer with a pre-approval certificate stating that the buyer has been pre-approved for the loan to purchase the home. As a potential buyer, a pre-approval certificate will help you stand out to the seller, making your offer a more solid one, and giving you the competitive edge.

Never be satisfied with a verbal agreement, make sure you get all agreements in writing!

For example the seller may verbally agree to include the refrigerator in the sale, but it is not contained on the written purchase and sales agreement – you should not sign this until it is included. Only agreements that are written in a contract are enforceable – avoid oral agreements at all costs.

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

Banks’ methods of handling bond applications questioned

Bank-bashing (by no means always justified ) has become a popular pastime in SA – but there is one serious cause for concern and that is the banks’ methods of handling bond applications, says Clarke.

“Almost daily,” he said, “we pick up complaints about the way mortgage bond applications are handled by the banks.”

The big four SA banks, he said, are fortunate to have many exceptionally loyal clients – and one result of this is that often these clients will reject any help from bond originators and will instead go directly to their own bank.

Here, said Clarke, after an initial meeting with a consultant, who is not always an expert in bond finance, they can often find themselves having to track the progress of their bond via a call centre.

This, says Clarke, can be a totally impersonal experience.

“The client finds himself dealing with a disembodied voice on the end of a line – and this bank representative voice is likely to have no concern or compassion for the client’s position.”

In the worst cases, said Clarke, the bond gets seriously held up or even lost – sometimes forcing the applicant to start all over again.

“It goes without saying,” commented Clarke, “that this can result in the buyer losing out on his dream home and the seller having to start the sale process all over again.”

The (sometimes) unsatisfactory bank performances, said Clarke, date from the time when bond origination caught on and the banks found that they could leave much of the paperwork to the originators. This, in turn, led to their cutting back on staff numbers.

Now, said Clarke, they are on a different tack and are trying once again to channel more applications directly to themselves.

“By and large,” he said, “this does not work to the benefit of the applicant. If, however, he approached a bond originator  to apply to several banks to get the deal best suited to the client.”

“The importance of this cannot be over-emphasised. “It is perhaps the main reason why Mortgage Plus Finance is achieving a hit rate 10 to 15% above the SA average and building such a good reputation for itself.”

“All in all, therefore, I am inclined to feel that banks must foster rather than try to eliminate originators.”

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