Applying for a Home Loan

Immediately after you have signed the contract, make your application for a home loan.
When you are buying a home, financing your new home is one of life’s major investment decisions.

When you purchase a new home it is likely that the estate agent will put you into contact with their preferred mortgage originator. Mortgage originators are not finance providers, but broker a home loan from one of the financial institutions. But ultimately you are still in control, you can cut out the middleman and shop around to choose whichever mortgage lender you prefer.

They will ask you for your identification, your latest payslip, bank statements, proof of any housing subsidy, and a copy of the sale agreement. All mortgage lenders will do a credit check on you to ensure you have an acceptable credit record.

The lender will also assign an independent valuer to assess your property. This is to ensure that the loan amount that has been requested is supported by the value of the property.

Be sure to disclose your true state of affairs in your loan application, to enable lender to make a fair assessment to determine whether you will be able to afford your loan repayments. Note that all Lenders are obliged to comply with the terms of the National Credit Act.

The lender will also insist that you take out insurance on your building and any additions such as walls, paving and outbuildings etc. so that you are covered in the event of a fire, flood, damage or any other major disaster. The insurance premium can be added into your monthly loan installment. In most cases for sectional title properties, this will not be necessary, as your insurance will be included in your levy and payable to your Body Corporate.

You may also be encouraged to take out mortgage protection cover to protect your family and your home, in the event of the death or disability of the major bread winner. This is a very practical cover that protects your home and your family, as the insurance will settle your outstanding loan should you die or become disabled.

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

New Bonds

The process of finding the best bank with which to secure a bond can be complicated.

Unless you support your application correctly, you may find that the banks either decline your application or do not give you the best rate available.
In order to prevent this from happening, to simplify the process for you and to speed up the process, it is strongly advised that you use a Bond Originator.

Bond Originating.

The bond originating business is big business in South Africa today and most bonds are placed this way. A bond originator is a bond broker. They present your bond application to all the banks and are paid commission on successful bond applications. It is therefore in their interest to get you your bond! They do not charge for their work. With the complicated requirements of the banks, it is essential to use qualified bond originators. Bond Originators do have concerns, especially if you go direct to them.
There are many Bond Originators and is difficult to build a lasting relationship with any one of them.

I have an excellent relationship with professional originator.

• You may find that an originator you use is only concerned with commission and they may damage your further chances with another bank when they submit your application. They may only be concerned with getting that one bond through. Some do whatever is necessary on your behalf without thinking about the future consequences for you. Unfortunately, you will only discover this when you apply for another bond or when you try to refinance and find that the originator you originally used is nowhere to be found.
• Some originators will submit your proposal to as many banks as possible and although you will get your bond, the damaged done with the banks may result in you not being able to get another bond in the future.
• Some originators are prepared to give kickbacks to developers and estate agents. By using them, you are now “forced” to use a specific bond originator. Otherwise you cannot get a bond. This is conditional selling and it is illegal! You should always be free to select your own bank or bond originator.

The success of our methods in getting your bond depends upon originators following strict rules.
To this end, it is highly recommended you work through our offices.

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