Home loans in South Africa may be obtained for various types of real estate property, such as flats, town houses, cottages, small agricultural holdings and large farms. The title deed of a property is held by a South African bank (home loan lender) as collateral, till the full payment towards the principal and interest is completed

Home Loans South Africa: Pre-Qualification

A home loan pre-qualification is a certification of a borrower’s capacity to repay a home loan. This certification is valid for a couple of months. It also states the maximum home loan amount a borrower can bear with ease. A credit check is carried out, with the individual’s consent. The purpose is to draw up a pre-qualification certificate. Income, which may be individual or joint, is the primary factor taken into consideration for a pre-qualification certificate.

Being a quick procedure, pre-qualification helps to narrow down properties that fit one’s budget and avoid denial. Pre-qualification also speeds up the procedure of home loan approval as it convinces sellers to grant loans when an application is backed by this certificate. Applying for a pre-qualification certification does not oblige an individual to apply for a home loan. Its basic purpose is to serve as a tool that helps to determine an individual’s borrowing ability.

Home Loans South Africa: Special Services

For assistance with home mortgage application and procurement, the home loan borrowers in South Africa can opt for the services of a bond originator or mortgage broker. These are banking experts who have a complete grasp of the home loan industry and general market conditions. This high-level expertise of a bond originator helps in finding the most lucrative loan terms and interest rates. Besides, a bond originator’s services are free at Mortgage Plus cc

Home Loans South Africa: Tips

Borrowers must first obtain a copy of their credit reports to ascertain their credit rating. Under the National Credit Act, individuals are entitled to a free copy of their credit reports annually from Experian and TransUnion.

Evaluating credit reports is vital to identify adverse items and incorrect records. The purpose of evaluation is to rectify inaccurate data. A home loan lender may reject an application on the basis of such records. Small steps such as speeding-up repayments on personal loans and other short-term debts significantly improve the chances of acquiring a home loan in South Africa.

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

Here are some useful tips to ensure you have the best chance possible to get a mortgage bond. Gone are the days where you could just go to your bank and have a very good chance of getting a home loan. Here is some info that you should know before applying for a bond.

1.    Appoint a Bond Originator – Its Free

Sometimes all it takes is one aspect of your application to be submitted incorrectly to make an otherwise successful application fail.  Your originator will ensure that your application is 100% which will greatly increase your chances of success. Furthermore this is a free service, it doesn’t cost you a thing.

2.    Be Accurate

Make sure the information included in your bond application is 100% correct. Any mistakes could result in a delay or worse, a negative reply from the bank.

3.    Get a copy of the Title Deed

You would be surprised how often the incorrect Erf numbers, section numbers, door numbers or physical addresses are given by a Seller. Your Agent can apply for a copy of the title deed on your behalf.

4.    Want To Go Direct? Think Again.

The banks are now asking for almost double the information needed for a home loan application than before, and if you think your bank manager has any influence on the outcome of your home loan application – think again!  If you apply direct, and your application fails and then you decide to work through a bond originator thereafter, your failed original application could count against you.

5.    Get pre-qualified

Did you know that your Bond Originator can help you work through a pre-qualification process? This will prevent a bank declining your application just because you failed to qualify for a loan and then had to arrange for another party to be added to your application after submission.

6.    Know Your Credit Rating

Did you know that you are entitled to receive all the information on your credit profile? You can get this information free once per year. It is always a good idea to “check” your  profile BEFORE starting the buying process.

You can do this through Experian 0861 105 665 or Transunion (commonly known as ITC) on 011 214 6000

7.    You’re Blacklisted & Didn’t Even Know It!

With the implementation of the National Credit Act came transparency across all credit providers. It just takes one inadvertent late payment on a shopping card to affect your credibility rating (and often you don’t even know that this is the case). This is common and in most cases bears no reflection on your credit reputation! Don’t despair, your bond originator is trained to help you clear your record and will then help you apply when you have the most chance of succeeding.

8.    Respond Quickly

Your application will require you to be ready to supply all documentation asked for and to be ready to provide further information when requested from the bank.

If you would like us to arrange a free consultation with a Bond Originator with a good track record see below details.

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