Getting a pre-approval on a home loan can considerable speed up the process of buying a home in South Africa. You will also be taken a lot more seriously if you can show that you can afford the house that you intend to buy. This articles gives a short overview of the process involved in obtaining a pre-approved home loan in South Africa.
Mortgage originators can help you select the best home lender and can obtain a pre-approved home loan on your behalf. Mortgage originators have online facilities where you can complete your home loan application in the comfort of your own home. Find out more about applying for a home loan online.
For the pre-approval process to be completed some essential information will be required. The home loan lender will require three to six months payslips or bank statements as proof of income and a income and expenditure report. This information will enable the home loan lender to determine your ability to pay the monthly bond installments.
A credit check will also be done to obtain information on the amount of credit inquiries and credit accounts you have behind your name and to check on your blacklist-status. The pre-approval home loan will be based on your credit scores and your ability to pay the monthly installments. A clear credit record and a high income with low debt will place the purchaser in a position to negotiate a good interest rate.
Although pre-approval does not guarantee a home loan, it will serve as an indication for the seller that the applicant in all probability will qualify for the required financing.