Bond Originators is a must in South Africa when applying for a home loan

South African Banks have differing home loan, mortgage criteria, and product ranges for specific market segments. Logically the First time homebuyer has a vastly altered profile to the multi-millionaire private bank client seeking out his status-symbol property.

For most South Africans buying a home is one of the biggest investments a person will make in his or her lifetime. Because your home purchase is probably the most expensive one you will make, the homeloan itself is an important financial decision.

The prospect of owning a home is exciting, but it can also be a time of anxiety. This is a time when emotions must be kept in check, and one should make an informed financial decision.

Therefore, a daunting, unnerving experience that cannot be undertaken without professional assistance from a Home Loan Expert or a Bond Originating company like Mortgage Plus “Rated one of South Africa’s Top Bond Originator Companies In 2011”.

Bond Originating companies like Mortgage Plus cc work closely with the all the major financial institutions throughout South Africa and understand the precise parameters required in order to get you your first home loan, placing home loan consultants in the position to advise clients on how to accurately present the deal. The essence of Mortgage originators is that they can offer clients appropriate advice and choice on different types of home loan products throughout South Africa.

A mortgage originator provides the public with home loan assistance through relatively unchartered territory, while lowering mortgage bond costs and stimulating inter-bank competition. Around 60-70 %of South African home loan approvals have followed the bond-originating route reflecting the vital link mortgage originators plays in the home ownership chain in South Africa.

Mortgage originators like Mortgage Plus cc have agreements with all the major financial institutions “banks” in South Africa this means those clients fortunate enough to qualify for a New Home Loan from more than one institution has the enviable choice of accepting the one offering the best home loan interest rates and terms.

Bond originators capitalises on the short window of opportunity potential homebuyers have in which to secure home loan or mortgage finance to confirm their purchase. The home loan industry provides unbiased and extensive product knowledge that caters for each client’s specific needs, thus boosting their chances for a successful mortgage application while recognising that securing the bond and determining the associated costs is pivotal to the decision-making process.

Remember Banks want to reduce the amount of time wasted on unfeasible home loan applications and that is the value Mortgage Bond Originators offer to both the financial institutions and the man-in-the-street – having the expertise to weed out those bond applications that should never be placed before the banks.

As home loan specialists Mortgage Plus cc offer their clients a free home loan service and the best chance of getting a home loan on the best terms with the advantage of one-stop shopping and the convenience of choice. The key lies in giving clients a choice of banks and thus providing a hassle-free service without incurring additional costs.

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

Do not Pin your Hopes on Pre-Approved Finance or Home Loan Pledges

Many moons ago, if you went to your bank and asked how much money it was willing to lend you in order for you to buy a home, you would more likely than not have walked out with a pre-approved bond. This document was almost cast in stone and virtually guaranteed that if you found a home priced within those parameters, the deal was all but done.

Although some banks still advertise pre-approved bonds, these days, this document does not guarantee that a home loan for a specific amount will be granted. It merely serves as an indication that the applicant will probably qualify for the required financing.

While this may be viewed as a waste of time, in actual fact, the exercise can be extremely helpful. Buyers, particularly first time purchasers, often have unrealistic expectations as to what they can afford. The National Credit Act and the overall economic situation has well and truly put a spanner in the works and put the brakes on the amount that banks are willing to lend, even if the applicant earns a relatively high salary.

Debt is a major problem in South Africa and banks now have to scrutinise each and every person applying for a loan extremely carefully. In the old days, the banks weren’t terribly concerned as to how much debt you had, these days, everything, including school fees, your domestic worker salary and your clothing accounts are taken into consideration before additional finance will be granted.

It’s not the only house buying hiccup you can expect. Even if a bank is willing to part with its money, it is not willing to do so if the risk is too high. In other words, even though you may qualify for a certain amount and have found a home that is priced within the budget, the bank will not finance the home if it deems the risk too high. This could apply to properties that are, in the banks view, overpriced.

You may feel that it is entirely your business if you are willing to pay too much for the privilege of owning a home. The banks, however, look at things a little differently and because essentially the property belongs to the bank until the final bond instalment is paid, it has a vested interest in the deal. As stakeholders, banks are not going to risk putting up the money on a deal where if something goes wrong, they are going to battle to get a return on their investment. It would be interesting to find out just how many overpriced properties sales collapse for this reason.

Those with little debt, a good credit record and the required income are going to find it easier to buy property. Even with pre-approval those with a dodgy credit history, those whose taxes are in arrears or those who are up to their eyeballs in debt are not going to be able to get a bond, regardless of how much they earn. These days investing in property is not only about the money, it’s also about the details. Homeownership is a privilege and no one is going to finance a deal unless the buyer can prove that he is responsible, solvent and in a good position to pay the money back.

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