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

FNB Home Loans
Mortgage Plus can help you in to get the best fnb bond for your needs. You do not have to lft a finger as we will organize with fnb for the home loan option that will suit you the best.

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FNB offers a variety of options:
Traditional Home Loan
Take out this loan when buying an existing residential property.

Building Bond
You can apply for a building bond if you are intending to build a home. Once the building is completed, your bond will revert to a normal home loan.

Smart Bond
The Smart Bond is a housing finance product for households that earn less than R15 000 and more than R2 500 per month. If you are planning to build your own home, the Smart Bond Building Loan will take care of your building needs.

Foreign Choice
This allows a foreigner or a South African who has emigrated to purchase a property in South Africa.

One Account
The One Account is an innovative product, secured by your home, that fulfills all the functions of a cheque account, overdraft, personal loan and home loan.
Choose the right facility for you

When applying for a facility on your home loan product, an affordability assessment will be done to find out exactly how much additional finance you can access.

Flexi Bond
You get access to surplus home loan funds 24 hours a day, 7 days a week if you have a transactional account with FNB. Alternatively, access to funds is available during business hours. Surplus funds include any prepayments, as well as a percentage of capital you have already repaid on your home loan up to a pre-determined limit.

Future Use
This enables you to register a bond greater than the home loan amount you require, creating an extra amount that may be accessed at a later stage.

Pre-Paid Finance
Withdraw any additional money that you have paid into your home loan account.

Repayment Choice
Increase your monthly instalment and save on interest. This also allows for you to pay off your home in a shorter period of time.

Re-Advance
This gives you access to the funds that make up the difference between your original registered home loan and the outstanding balance.

Further Bond
Obtain funds by registering an additional amount over and above your original registered bond amount.

Interest Rate Options
Fixed Rate
For the duration of your contract period (12, 18 or 24 months), the interest rate on your home loan remains fixed and is unaffected by any rise or fall of general interest rates.

Variable Rate
This is the standard interest rate option. The interest rate varies in line with current interest rate movements.

BA Linked Rate
The interest rate is directly linked to the publicly quoted three-month SAFEX BA rate (Bankers Acceptance Rate) and offers a highly competitive means of financing your home loan.

Home Loan Insurance
Home Owner’s Cover
This insures your house and any structural improvements to the property. This cover is compulsory with any home loan.

Home Loan Protection Plan
This plan provides peace of mind in the unforeseen events of death, temporary and permanent disability and retrenchment.

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Email: morne@mortgagepluscc.co.za
Ph: 011.327.4489
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