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

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

With house prices firmly back on an upward trend and banks beginning to relax their lending criteria for home loans, consumers are increasingly looking to get back onto the housing ladder.

As the property market becomes more competitive, however, it is vital for consumers to make sure they are well prepared and can act quickly when an offer is accepted.

Craig Deats – has the following advice for potential homebuyers when applying for a home loan to ensure they have the ultimate opportunity for success on their bond applications.

1. Make sure you are aware of all the costs involved in buying a home. In addition to arranging a home loan and paying a deposit there are a number of other costs involved including legal costs, transfer duty, bond registration fee and bank charges. These will need to be paid in order to complete the process.

2. It is advisable to have a clean credit record before applying for a home loan. As a result of the National Credit Act and current market conditions, banks have tightened their lending criteria and a negative credit record may impact the result of your home loan application.

3. Provide your bank or bond originator upfront with all required information and documentation requested. Each bank has their own set of criteria so ensure that you have met the requirements of each lender.

4. Make use of a reputable bond originator, who can assist you by facilitating bond negotiations with all major lenders in one simple process from prequalification to registration, with less hassle and minimal paperwork. They also provide regular feedback of progress on your application.- www.mortgagepluscc.co.za 

5. Shop around with multiple lenders. According to the latest statistics, 19.8% of applications in January 2010 that were declined by one lender were approved by another, indicating that it is important to approach multiple lenders to ensure a positive outcome on your home loan. Shopping around also ensures that you get the best rate on offer.

CONTACT US
For more assistance with regards to Applying for Home Loan Finance .
Email: morne@mortgagepluscc.co.za
Ph: 011.327.4489
or Complete This Online Form