100% home loans

If you are like hundreds of South Africans each year who want to buy their own home, you know that the first hurdle to realizing your dream is getting that first home loan. It is not easy, but it is not an insurmountable hurdle either. People successfully achieve their dream to buy a home every day and you can too. Just follow a few easy steps to getting that first loan.

The first thing you want to do is make sure that you are not up to your ears in bills. The bank or savings and loan is going to want to be sure that you can pay your loan. If your bills are a substantial portion of your monthly income, you could be a risk. So you want to get rid of some of that debt. In the months leading up to your decision to buy a home, you can pay more on your bills to pay down the principles. Try to avoid charging much on your credit cards. Save your money. Don’t go out as often. Quit smoking and other expensive habits. You want to do everything possible to ensure that your savings and income are well above your monthly debt.

How stable is your employment? The loan officer is going to want to see that you have the ability to make your payments. Have you been at your current job for years or just a few months? Changing jobs right before purchasing a home is a bad idea, unless, of course, you’re moving into a very high-paying position with a lot of job security. If you are self-employed, put together a portfolio of the work you do and an explanation of how you manage to attract new work on a regular basis. You want to give the loan officer confidence that you will have a steady income throughout the duration of your mortgage.

Consider working with a bond agent. A bond agent can help you fill out your loan application and help you to decide which mortgage options are best for you. And more importantly, the agent can help you select the options that will give you the best chance of getting your loan approved. These people have contacts in the lending world and they can pull strings for you if necessary.

Finally, you want to be sure that your credit is good. Although there are ways to get a loan when your credit score is down in the dumps, it can be quite difficult. Make sure that you are paying your bills on time and that you do not have any loans in default. Also, make sure that you have the required car insurance since even this can show up on your credit report.

Getting a home loan is not sorcery. It is just a matter of common-sense and being organized and informed. If you sit down and plan for what you want and put together a strategy for how you are going to get there, purchasing a home can be a rewarding experience, especially when you find yourself snug in your new home.

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

How much house can you afford?

You and your wife are buying a home, what home loan should you consider? We’ve given you an equation to work it out. Very simply, the major banks will give you up to twenty times your combined monthly salary. What else should you consider? Keep an eye on these important factors:

1. Future interest rate increases: The vast majority of bond foreclosures occur during times when interest rates are high and monthly installments become unmanageable. Very few families can pay more than 25% of their monthly income on bond repayments. That’s why banks put their lid on at this percentage. Consider taking a loan for less than you can presently afford, you may come to be grateful you did!

2. Possible salary reductions: Most people’s salaries don’t decrease but if you’re self-employed, work on a commission basis or have any other form of uncertain income, make allowance for a possible downturn in the future. Will your wife continue working for the next ten years? If not, allow for the future loss of monthly income. Give yourselves some breathing-space.

3. Increased future expenses: Another good reason for taking a home loan for less than you can presently afford. It may be your child’s future university education, repairs to your home, higher levies or rates, and other similar burdens. Some foresight and wisdom now will hold you in good stead at any future time when your spending power may be less than it is now.

Click Here to go to our Maximum Loan Calculator

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