By Zulika van Heerden
Home Loans: At some point or another we all, except a fortunate few, need a home loan to be able to purchase a property.
In addition to the monthly installments there are also other costs you need to be aware of. What are these costs?
There are at least 4 additional costs to keep in mind after you purchase a property:
1 - Rates and taxes (utilities)
These are calculated on a monthly basis and varies according to your use of water and sewrage facilities, it also includes refuse removal and the largest portion is calculated according to the size of your plot.
2 - Home Owners Insurance
This is an insurance that covers you if there are damages to your property caused by storms or other natural disasters. The bank or lender will always suggest you use their insurer, but you don't have to because these are often quite a bit more expensive than outside insurers, so be aware and shop around.
3 - Monthly bank fees
The bank or lender that has granted your home loan will also charge you a monthly fee to manage the account. The maximum they may charge according to the National Credit Act is R57.00. This fee will vary from bank to bank and will also be less, depending on the bank, if you use their insurer or more expensive if you use an outside insurer. However, the amount may never be more than R57.00.
4 - Life Insurance/Home Loan Cover
Life insurance or home loan cover is mandatory at most banks, so that in the event of the death of the breadwinner or spouse that both the bank and the remaining familiy members are protected. The bank is protected in that the entire bond is paid off (provided the life cover is sufficient) and your family benefit too because they won't be burdened with a monthly bond repayment.
These are the 4 major home loans costs that you'll encounter after purchasing a home - remember that when purchasing a sectional title property all the above costs, except for 1 and 2 are normally included in your levy, therefore you needn't worry about those.
For more information on home loans or other eye-opening articles please visit our website on: http://www.gpfmortgage.co.za/
Tuesday, December 29, 2009
Monday, December 21, 2009
When last have you tried to apply for Home Loans?
Taken From: http://ezinearticles.com/?expert=Zulika_Van_Heerden
If you have ever wanted to apply for a home loan, now is potentially a really a difficult time.
Why do I say so you ask? Well with the recession just “officially” over, the banks have still not changed their risk-averse attitude, which means they’re not easily granting loans.
Firstly, before you apply for home loans, make sure you have a squeaky clean credit record. Any sniff of anything negative will cause the banks to decline the application.
Secondly, make sure you know which bank requires what percentage deposit. And if you do need one, make sure you have enough. Sometimes they will even ask for proof of the funds before they start to work on the application.
The application itself isn’t difficult, but it is the way the information is presented and what you say in your motivation.
The motivation is one of the most essential parts of the application as it “speaks” to the credit manager without him or her just seeing the black and white figures on the page.
If you approach a reputable mortgage broker for a home loan you would not need to worry about this because they would do it all for you.
Home loans are essential for home ownership if you do not have the cash to purchase a house. Essentially it’s where the bank gives you money to buy an appreciating (increasing in value) asset.
So, in conclusion, don’t take on the hassle on your own, let a mortgage broker do the legwork for you.
If you need more information about home loans or how to apply please visit our website at http://www.gpfmortgage.co.za
If you have ever wanted to apply for a home loan, now is potentially a really a difficult time.
Why do I say so you ask? Well with the recession just “officially” over, the banks have still not changed their risk-averse attitude, which means they’re not easily granting loans.
Firstly, before you apply for home loans, make sure you have a squeaky clean credit record. Any sniff of anything negative will cause the banks to decline the application.
Secondly, make sure you know which bank requires what percentage deposit. And if you do need one, make sure you have enough. Sometimes they will even ask for proof of the funds before they start to work on the application.
The application itself isn’t difficult, but it is the way the information is presented and what you say in your motivation.
The motivation is one of the most essential parts of the application as it “speaks” to the credit manager without him or her just seeing the black and white figures on the page.
If you approach a reputable mortgage broker for a home loan you would not need to worry about this because they would do it all for you.
Home loans are essential for home ownership if you do not have the cash to purchase a house. Essentially it’s where the bank gives you money to buy an appreciating (increasing in value) asset.
So, in conclusion, don’t take on the hassle on your own, let a mortgage broker do the legwork for you.
If you need more information about home loans or how to apply please visit our website at http://www.gpfmortgage.co.za
Wednesday, December 2, 2009
FNB Home Loans – How can You Guarantee Approval?
FNB Home Loans – Why would anybody specifically choose FNB Home Loans for their bond? Ask any reputable mortgage broker and they will tell you that FNB has a fast turn around time, good service and a fair lending policy.
If you want to apply for a FNB home loan keep these in mind:
FNB Home Loans Tip 1 – Always Pay Debts on Time
When applying for a home loan you have to have a clear payment profile. All the banks, including the FNB home loans department, will check your ITC report with the two major credit bureaus, namely TransUnion and Experian.
So, what do you have to do to maintain a clear payment profile? There are two major factors, firstly you need to pay the full amount due every month, and secondly the payment must be made on time, meaning, on or before the due date.
If you don’t adhere to this you will be listed as a slow or erratic payer, which lowers your credit score and increases your risk to the banks.
FNB Home Loans Tip 2 – Stop Making More Debt
When applying for a home loan, the last thing you want to do is to go and make more debt.
Whenever you apply for debt, that company does a credit check, and every time somebody does a credit check on you, your credit scoring decreases.
This may show the bank that you are not in control of your spending habits – FNB home loans strictly stays within the boundaries of the National Credit Act and will not grant you a bond.
FNB Home Loans Tip 3 – Know That There Will Be Costs
What people don’t realize is that there are significant costs involved when purchasing a loan. At date of writing this article, only a few banks offer 100% home loans, FNB home loans being one of them. This has however never disappeared because affordable housing of less than R450k has always been able to get up to 104% bonds.
You must realize that, depending on which bank you approach, a deposit of between 5-10% (FNB Home Loans offers a 100% bond) of the purchase price and you must still cover the legal fees.
If you buy a house for R950 000 this could add up to +/- R90 000 which is quite a large of money if you weren’t aware of it.Always ask as many questions as possible and get a written quotation from the attorneys on what the total cost would be so that you know where you stand.
If you want to apply for a FNB home loan keep these in mind:
FNB Home Loans Tip 1 – Always Pay Debts on Time
When applying for a home loan you have to have a clear payment profile. All the banks, including the FNB home loans department, will check your ITC report with the two major credit bureaus, namely TransUnion and Experian.
So, what do you have to do to maintain a clear payment profile? There are two major factors, firstly you need to pay the full amount due every month, and secondly the payment must be made on time, meaning, on or before the due date.
If you don’t adhere to this you will be listed as a slow or erratic payer, which lowers your credit score and increases your risk to the banks.
FNB Home Loans Tip 2 – Stop Making More Debt
When applying for a home loan, the last thing you want to do is to go and make more debt.
Whenever you apply for debt, that company does a credit check, and every time somebody does a credit check on you, your credit scoring decreases.
This may show the bank that you are not in control of your spending habits – FNB home loans strictly stays within the boundaries of the National Credit Act and will not grant you a bond.
FNB Home Loans Tip 3 – Know That There Will Be Costs
What people don’t realize is that there are significant costs involved when purchasing a loan. At date of writing this article, only a few banks offer 100% home loans, FNB home loans being one of them. This has however never disappeared because affordable housing of less than R450k has always been able to get up to 104% bonds.
You must realize that, depending on which bank you approach, a deposit of between 5-10% (FNB Home Loans offers a 100% bond) of the purchase price and you must still cover the legal fees.
If you buy a house for R950 000 this could add up to +/- R90 000 which is quite a large of money if you weren’t aware of it.Always ask as many questions as possible and get a written quotation from the attorneys on what the total cost would be so that you know where you stand.
Monday, November 23, 2009
Picking the Best SA Home Loan for You
SA Home Loans: When it comes to purchasing a home, you are probably very excited about the fact that you will be starting a new chapter of your life. Everything happens so fast sometimes that you might think that there will barely be any time to read through your loan documents.
You could not be more wrong though. Even though those documents are going to be long and drawn out, it is extremely important to make sure that you or your attorney go through them with a fine tooth comb.
Before you even get to that part though, you will want to make sure that you are even applying for the correct loan to begin with. There are a few types of home loans out there and it is important to make sure that you understand the basics of each in order to make sure that you are making the right decision for you and your family.
Going with the wrong loan could cause you to default on your loan and lose your house. Since this is not something that you want to have happen, it is important to make sure that you are taking the proper precautions from the start.
What Types of SA Home Loans Are There.
The loan that many people consider to be the best option is the fixed rate mortgage. This is a pretty straightforward loan. You have a set interest rate, which will never change for the period it’s fixed, and a set number of years to repay the debt.
Another major loan product out there would be the variable rate mortgage. This is a risky loan in a rising interest rate market because if the prime interest rate goes up, the mortgage company will also begin to increase your interest rate.
This means that you can never predict what your payments are going to be in the future. Many people have found themselves in foreclosure simply because the payments adjusted to an amount that was too much to handle.
Interest only home loans are another option. The thing is though, during the first couple of years of the mortgage, none of your payments goes to the principal balance. If you plan on selling you home within the first couple of years then your payoff amount is basically going to be the same as the first day you took out the loan.
As you can see, there are a few different options out there for you. You really have to look through them all to make sure that you are getting the right type of loan for your needs.
If you need any more information about SA Home Loans or other home loans related questions fo not hesitate to contact us.
You could not be more wrong though. Even though those documents are going to be long and drawn out, it is extremely important to make sure that you or your attorney go through them with a fine tooth comb.
Before you even get to that part though, you will want to make sure that you are even applying for the correct loan to begin with. There are a few types of home loans out there and it is important to make sure that you understand the basics of each in order to make sure that you are making the right decision for you and your family.
Going with the wrong loan could cause you to default on your loan and lose your house. Since this is not something that you want to have happen, it is important to make sure that you are taking the proper precautions from the start.
What Types of SA Home Loans Are There.
The loan that many people consider to be the best option is the fixed rate mortgage. This is a pretty straightforward loan. You have a set interest rate, which will never change for the period it’s fixed, and a set number of years to repay the debt.
Another major loan product out there would be the variable rate mortgage. This is a risky loan in a rising interest rate market because if the prime interest rate goes up, the mortgage company will also begin to increase your interest rate.
This means that you can never predict what your payments are going to be in the future. Many people have found themselves in foreclosure simply because the payments adjusted to an amount that was too much to handle.
Interest only home loans are another option. The thing is though, during the first couple of years of the mortgage, none of your payments goes to the principal balance. If you plan on selling you home within the first couple of years then your payoff amount is basically going to be the same as the first day you took out the loan.
As you can see, there are a few different options out there for you. You really have to look through them all to make sure that you are getting the right type of loan for your needs.
If you need any more information about SA Home Loans or other home loans related questions fo not hesitate to contact us.
Wednesday, November 18, 2009
HOME LOANS SA
HOME LOANS SOUTH AFRICA: The Reserve Bank has decided to keep interest rates unchanged at 10.50%
This is thought to further stimulate economic growth and recovery which is starting to turn for the better.
Home Loans are still at relatively low rates and it's a good time to buy.
If you need a SA Home loans application to be done for you don't hesitate to contact us.
This is thought to further stimulate economic growth and recovery which is starting to turn for the better.
Home Loans are still at relatively low rates and it's a good time to buy.
If you need a SA Home loans application to be done for you don't hesitate to contact us.
Are Standard Bank Home Loans Still Being Approved
Standard Bank: Are they still approving home loans? The short answer would be yes. The home loans department has been inundated with bond applications since they re-introduced the use of mortgage originators to their panel.
During the early part of the year Standard Bank Home Loans chose to end their relationship with all originators. After lengthy negotiations they eventually agreed to re-introduce mortgage originators to the value offering they offer clients.
Mortgage originators play an integral role in the home loans business received from the banks and can also help to sift through transactions that should never have been presented to banks.
Applying for a home loan through a bond originator will also help you because you don’t have the stress of applying to all the banks and follow up daily. To add to this, you only have your home loan consultant to speak to, not a different person every time you phone.
Applying for a home loan through Standard Bank is also a much smoother process with a mortgage originator because they will submit the application electronically directly onto the bank’s home loan software.
The home loans department is now up to date with their applications and are processing them quickly.
For more information on Standard Bank Home Loans, visit our website.
During the early part of the year Standard Bank Home Loans chose to end their relationship with all originators. After lengthy negotiations they eventually agreed to re-introduce mortgage originators to the value offering they offer clients.
Mortgage originators play an integral role in the home loans business received from the banks and can also help to sift through transactions that should never have been presented to banks.
Applying for a home loan through a bond originator will also help you because you don’t have the stress of applying to all the banks and follow up daily. To add to this, you only have your home loan consultant to speak to, not a different person every time you phone.
Applying for a home loan through Standard Bank is also a much smoother process with a mortgage originator because they will submit the application electronically directly onto the bank’s home loan software.
The home loans department is now up to date with their applications and are processing them quickly.
For more information on Standard Bank Home Loans, visit our website.
Monday, October 26, 2009
Standard Bank Home Loans for First Time Buyers
Standard Bank Home Loans: Millions dream of owning their own home. You can get your first time buyer home loan fast and realize the dream of owning your home with the assistance of an expert home loan consultant with banks competing to get your business.
First time buyers are often caught off guard at how complex the home loan approval process. If you’re looking for a home loan and you’ve never owned a property there are some things you can look at to make the home loan process less complicated.
Standard Bank Home Loans – Educate Yourself
First time buyers must educate themselves on the buying process before making contact with a home loan consultant. There are so many options when getting a first time buyer home loan. There are friendly and helpful home loan professionals that can assist you with making the correct decisions.
You must shop around before trying to apply for a first time buyer home loan. Find out if there are deposit requirements and find out the repayment terms that will suite your budget. You have the option of a 20, 25 or 30 year term and can choose a variable or fixed interest rate.
Often it’s difficult to choose which home loan is the right one for you because there are so many options available. You need to take your long-term goals into consideration, how long you’re planning to stay in the home and what your financial situation is at the moment. A professional and well-informed home loan consultant can assist and give you advice in showing you which would be the one best suited for you.
Use a Broker to Help You With Your Standard Bank Home Loan
The application for a first time buyer home loan doesn’t have to be nerve-wracking experience. There are so many first time buyers that have had invaluable assistance from home loan consultants ready to point you in the direction of a bank willing to give you a home loan.
Applying also doesn’t have to be difficult. If you’ve chosen a reputable home loan consultant, let them help you make good decisions for your unique situation. Many home loan consultants will let you apply online, which is a fast and easy way to get your home loan approved.
So, if you let a Standard Bank home loans broker assist you the process needn’t be stressful or frustrating.
First time buyers are often caught off guard at how complex the home loan approval process. If you’re looking for a home loan and you’ve never owned a property there are some things you can look at to make the home loan process less complicated.
Standard Bank Home Loans – Educate Yourself
First time buyers must educate themselves on the buying process before making contact with a home loan consultant. There are so many options when getting a first time buyer home loan. There are friendly and helpful home loan professionals that can assist you with making the correct decisions.
You must shop around before trying to apply for a first time buyer home loan. Find out if there are deposit requirements and find out the repayment terms that will suite your budget. You have the option of a 20, 25 or 30 year term and can choose a variable or fixed interest rate.
Often it’s difficult to choose which home loan is the right one for you because there are so many options available. You need to take your long-term goals into consideration, how long you’re planning to stay in the home and what your financial situation is at the moment. A professional and well-informed home loan consultant can assist and give you advice in showing you which would be the one best suited for you.
Use a Broker to Help You With Your Standard Bank Home Loan
The application for a first time buyer home loan doesn’t have to be nerve-wracking experience. There are so many first time buyers that have had invaluable assistance from home loan consultants ready to point you in the direction of a bank willing to give you a home loan.
Applying also doesn’t have to be difficult. If you’ve chosen a reputable home loan consultant, let them help you make good decisions for your unique situation. Many home loan consultants will let you apply online, which is a fast and easy way to get your home loan approved.
So, if you let a Standard Bank home loans broker assist you the process needn’t be stressful or frustrating.
Tuesday, October 6, 2009
Standard Bank Home Loans Made Easy
When you are in the process of applying for a home loan, it is difficult to know where to turn. The various banks are offering various products. Let's have a quick look at what Standard Bank Home Loans are offering.
If you are purchasing a new property you can either apply for a Dream Start home loan or a Ordinary loan.
Dream Start: Standard Bank Home Loans is trying to make it easier for, what they refer to as, “entry level income earners”. You fall under this category if you earn a salary of between R1 500 and R6 000 per month. You can apply for this product whether you are buying a new home or building a new home.
If your single or joint income is more than R6 000 per month, you would apply for an Ordinary home loan. You can choose between a 20 or 30 year term. In recent times we are seeing very sudden changes with regards to deposits needed when buying a new property. Currently, Standard Bank Home Loans department will require a 5% deposit.
Standard Bank Home Loans are also offering something called Affordable Housing. This means that if your joint gross monthly income is less than R15 142 you can apply for a bond of up to 100% of the purchase price, no deposit needed. In addition to this, if you are a first time buyer you can apply for a 104% bond. This means no deposit needed, and the fees involved will also be covered by the bond.
You can apply for an Access Bond, whether you are applying for a Standard Bank Home Loans Dream Start or an Ordinary home loan. This will enable you to pay off your bond quicker, and save large amounts on the interest rate. This will also give you access to additional funds paid into the account, or funds that you haven't withdrawn from the account.
However, you need to have a Standard Bank account to apply for an Access Bond.
You can choose a variable rate or a fixed rate, when applying for a bond with Standard Bank Home Loans. A variable rate will let you benefit if the prime rate is lowered. However, if the rate increases, so will your installments. A fixed rate will give you a fixed installment. So even if the prime rate goes up, your installment will remain the same. But on the other hand, if the prime rate goes down, you will not benefit from this.
If you want to apply for a bond with Standard Bank Home Loans you can either apply via Standard Bank's website, call the home loan's department, apply at one of the branches, or, you can apply through a professional bond originator who will do the application on your behalf.
Well, I know that is a lot for you to take in so I am happy to spend some time with you and answer any questions you have about getting a Standard Bank Home Loans and making sure your SA Home Loan. You are welcome to contact my office at 086 110 6204 or send me a personal email at: info@gpfmortgage.co.za
If you are purchasing a new property you can either apply for a Dream Start home loan or a Ordinary loan.
Dream Start: Standard Bank Home Loans is trying to make it easier for, what they refer to as, “entry level income earners”. You fall under this category if you earn a salary of between R1 500 and R6 000 per month. You can apply for this product whether you are buying a new home or building a new home.
If your single or joint income is more than R6 000 per month, you would apply for an Ordinary home loan. You can choose between a 20 or 30 year term. In recent times we are seeing very sudden changes with regards to deposits needed when buying a new property. Currently, Standard Bank Home Loans department will require a 5% deposit.
Standard Bank Home Loans are also offering something called Affordable Housing. This means that if your joint gross monthly income is less than R15 142 you can apply for a bond of up to 100% of the purchase price, no deposit needed. In addition to this, if you are a first time buyer you can apply for a 104% bond. This means no deposit needed, and the fees involved will also be covered by the bond.
You can apply for an Access Bond, whether you are applying for a Standard Bank Home Loans Dream Start or an Ordinary home loan. This will enable you to pay off your bond quicker, and save large amounts on the interest rate. This will also give you access to additional funds paid into the account, or funds that you haven't withdrawn from the account.
However, you need to have a Standard Bank account to apply for an Access Bond.
You can choose a variable rate or a fixed rate, when applying for a bond with Standard Bank Home Loans. A variable rate will let you benefit if the prime rate is lowered. However, if the rate increases, so will your installments. A fixed rate will give you a fixed installment. So even if the prime rate goes up, your installment will remain the same. But on the other hand, if the prime rate goes down, you will not benefit from this.
If you want to apply for a bond with Standard Bank Home Loans you can either apply via Standard Bank's website, call the home loan's department, apply at one of the branches, or, you can apply through a professional bond originator who will do the application on your behalf.
Well, I know that is a lot for you to take in so I am happy to spend some time with you and answer any questions you have about getting a Standard Bank Home Loans and making sure your SA Home Loan. You are welcome to contact my office at 086 110 6204 or send me a personal email at: info@gpfmortgage.co.za
Monday, September 28, 2009
SA Home Loans – Are You Paying too Much Per Month?
Face it; the manager at your bank is not going to help you decrease your monthly home loans installments. Why should they?
Are you finding yourself having to deal with various issues with SA home loans, credit cards and personal loan installments? A huge problem with rising debt is that it becomes more and more difficult to pay off only the interest, not to mention the debt capital itself.
If you are a normal South African, you are probably balancing work, putting out fires, working long hours and dealing with other issues, and the last thing on your mind is thinking about saving money on home loans.
The last thing you have time for is wasting time in a bank or talking to a call centre consultant.
SA Home Loans Issues SA Home Owners Have- So Where Can We Find The Solution?
Imagine…you are able to save a lot of money on your home loan, and at long last you are able to put away money for savings!...Less stress and your family’s financial future is secure.
It probably sounds too good to be true, but, if you have the right tools, information and resources, it will come true.
It’s said that the first step to overcoming a challenging situation is to acknowledge that there is a problem and that a change is needed.
If you continuously do the same things over and over again you’ll keep getting the same results.
As South Africans, we pay too much for debt, especially SA home loans. We often do not realize what effect higher interest rates have on our finances.
Friday, September 25, 2009
Are SAhomeloans Difficult To Qualify For?
If you have tried applying for sahomeloans on your own you might have found that it’s difficult to get your homeloan approved.
What can you do to easily qualify for sahomeloans? By following these 3 easy guidelines you’ll be able to get your dream home soon.
SAhomeloans tip no. 1: Pay your debts on time
Did you know that companies no longer accept payments by the 7th of the month? If your statement says that you must pay by the 1st or by the 3rd, then that’s the day the payment is due.
If you don’t pay by that date the company may list you as a slow or erratic payer which may hamper you getting approved for sahomeloans with ease.
SAhomeloans tip no. 2: Don’t make additional debt
It may seem obvious, but to qualify for sahomeloans you should make extra debt when applying for a homeloan.
Making extra debt means that your credit score will decrease.
Why? Well each company you approach will do a credit check, and every time that happens your credit worthiness decreases because of all these credit enquiries.
SAhomeloans tip no. 3: Save for a deposit
Even though it looks like the banking industry is easing up on their lending criteria you should still save up for a deposit.
How do you save during these tough times? Well, work out how much you will be spending per month on a bond installment if you buy and use the difference between that and what you’re currently paying for rent and save that.
Doing this will achieve 2 goals. Firstly you will be able to save this difference and use it as a deposit, and secondly and most importantly you will know if you will be able to afford the monthly homeloan installment.
In a few months time that may work out to enough for a 5 or 10% deposit on a house.
Click for more information on how to qualify for sahomeloans.
Monday, August 24, 2009
Buying Vs Renting
If you are currently renting a home and are considering buying a home in the near future keep on reading.
If you are new to the area and think you may want to rent before buying a home you may want to consider some of the following factors:
1. If you are not financially sound do not buy home yet.
Despite all the great loan opportunities available, get your finances and other loans under control before purchasing your home. Lenders often base the interest rate and terms of your Mortgage on your credit score and history.
To get the best loan, you will need to make sure that you have a deposit and a clean credit report.
2. Make sure you are ready to commit to maintaining a home.
No matter how new or in what great condition a home is in when you buy it, the home will require maintenance.
You need to understand that your home is a financial investment.
It will be worth more if you can commit the time and money needed to keep it in good shape and updated while you live in it.
3. Renting is an expense while home ownership is an investment.
Hire a Realtor, buy a home in the right location, reside in the home for a decent amount of time, and take good care of the home. When you sell, you should realize a gain on your investment.
4. Owning a home gives you more flexibility in your lifestyle.
Home ownership allows you to decorate landscape, upgrade or change the home to suit your lifestyle and tastes. As a renter, it doesn't make sense to spend money redecorating someone else's home.
5. Are you relocating to the area?
If you are new to the area and want to live in an apartment for a while before you buy, be careful where you rent.
When renting for six months to a year, you will probably become attached to that area. You will become comfortable with the stores, Dr. offices, services, and general location.
However, when it comes time to buy, many people become reluctant to leave that area, yet the home that they want to buy does not exist anywhere near the apartment.
This can create a "real estate trap." Hire an estate agent
Have them educate you on the different areas that may suit your lifestyle and on the neighborhoods that may interest you when you are ready to buy.
For more information about home loans, visit: http://www.gpfmortgage.co.za
If you are new to the area and think you may want to rent before buying a home you may want to consider some of the following factors:
1. If you are not financially sound do not buy home yet.
Despite all the great loan opportunities available, get your finances and other loans under control before purchasing your home. Lenders often base the interest rate and terms of your Mortgage on your credit score and history.
To get the best loan, you will need to make sure that you have a deposit and a clean credit report.
2. Make sure you are ready to commit to maintaining a home.
No matter how new or in what great condition a home is in when you buy it, the home will require maintenance.
You need to understand that your home is a financial investment.
It will be worth more if you can commit the time and money needed to keep it in good shape and updated while you live in it.
3. Renting is an expense while home ownership is an investment.
Hire a Realtor, buy a home in the right location, reside in the home for a decent amount of time, and take good care of the home. When you sell, you should realize a gain on your investment.
4. Owning a home gives you more flexibility in your lifestyle.
Home ownership allows you to decorate landscape, upgrade or change the home to suit your lifestyle and tastes. As a renter, it doesn't make sense to spend money redecorating someone else's home.
5. Are you relocating to the area?
If you are new to the area and want to live in an apartment for a while before you buy, be careful where you rent.
When renting for six months to a year, you will probably become attached to that area. You will become comfortable with the stores, Dr. offices, services, and general location.
However, when it comes time to buy, many people become reluctant to leave that area, yet the home that they want to buy does not exist anywhere near the apartment.
This can create a "real estate trap." Hire an estate agent
Have them educate you on the different areas that may suit your lifestyle and on the neighborhoods that may interest you when you are ready to buy.
For more information about home loans, visit: http://www.gpfmortgage.co.za
Fixed & Variable Interest Rates
When choosing a mortgage loan most people focus on the interest rate more than on any other factor of the loan.
The lowest interest rate, however, does not always mean you pay less money.
Hidden fees, rising interest rates or prepayment penalties can cost you a fortune over the term of the loan.
Understanding when to recognize a bad Mortgage loan may save you a lot of money in the long run.
Variable Rate Mortgages (VRMs)
Variable Rate Mortgages make buying a home easier, especially for first-time home buyers, but you have to understand what you are agreeing to.
Most VRMs start out with a low introductory interest rate that can climb as interest rates go up.
Unless you are prepared to pay a higher payment later on this type of Mortgage can turn out to be dangerous for you.
It is especially difficult for those who can barely afford the loan to begin with.
Prepayment penalty
Paying off your Mortgage loan early can save you thousands of rands in interest but not if
there is a prepayment penalty clause in your contract.
Make sure there is no such clause before you sign your loan papers otherwise the bank can charge you enormous fees for paying off your loan.
Most people don't think they can ever pay off a Mortgage loan early at the onset of the loan but your circumstances could change. It would be a shame to be penalized for trying to save yourself some money.
Lower interest rates
If you are being offered an extremely low interest rate then you should investigate why.
Ask for a quote so you can see what the closing costs (initiation & legal fees, insurance etc.) will be.
Many times a lender will add exorbitant closing fees to a loan to make up for the lower interest rate.
High interest rates
If you know your credit score is good and you are still being quoted higher than normal interest rates then don't take the first loan that comes your way.
Shop around. Do your homework and make sure you know what the current prime rate is and the rates of several lenders.
A home Mortgage loan is a very long commitment and you don't want to make that commitment with the wrong lender...
The lowest interest rate, however, does not always mean you pay less money.
Hidden fees, rising interest rates or prepayment penalties can cost you a fortune over the term of the loan.
Understanding when to recognize a bad Mortgage loan may save you a lot of money in the long run.
Variable Rate Mortgages (VRMs)
Variable Rate Mortgages make buying a home easier, especially for first-time home buyers, but you have to understand what you are agreeing to.
Most VRMs start out with a low introductory interest rate that can climb as interest rates go up.
Unless you are prepared to pay a higher payment later on this type of Mortgage can turn out to be dangerous for you.
It is especially difficult for those who can barely afford the loan to begin with.
Prepayment penalty
Paying off your Mortgage loan early can save you thousands of rands in interest but not if
there is a prepayment penalty clause in your contract.
Make sure there is no such clause before you sign your loan papers otherwise the bank can charge you enormous fees for paying off your loan.
Most people don't think they can ever pay off a Mortgage loan early at the onset of the loan but your circumstances could change. It would be a shame to be penalized for trying to save yourself some money.
Lower interest rates
If you are being offered an extremely low interest rate then you should investigate why.
Ask for a quote so you can see what the closing costs (initiation & legal fees, insurance etc.) will be.
Many times a lender will add exorbitant closing fees to a loan to make up for the lower interest rate.
High interest rates
If you know your credit score is good and you are still being quoted higher than normal interest rates then don't take the first loan that comes your way.
Shop around. Do your homework and make sure you know what the current prime rate is and the rates of several lenders.
A home Mortgage loan is a very long commitment and you don't want to make that commitment with the wrong lender...
Junk Fees to be aware of!
Almost every loan is going to have associated with it fees for insurance, valuation, etc. Most of these fees are commonly required amongst all lenders and they must give you a list of their costs associated with a mortgage.
Despite the fact that the costs are disclosed, some lenders may include extraordinary "junk" fees in their costs that an unwary buyer may not recognize as an extra fee.
At the time of a loan application lenders are required to give you a written closing cost estimate.
First, determine if your rate has been loaded. Some lenders advertise artificially low rates to attract customers but load up on fees to compensate for a lower rate.
A tip off to a lender that charges hidden fees would be a lender who advertises interest rates that are appreciably lower than the competition. Interest rates are very competitive and shopping for the very best rate may in fact work to your disadvantage.
Differences in rates of 1/8th or 1/4th of a percent result in very little difference in a payment and may be offset by poor service and added hidden fees.
Your only defense against being overcharge is knowledge...
Now, in 2 days time, I'm going to send you a very special video called:
“9 Critical Questions You Must Ask Before Applying For A Mortgage!”
This video will show you exactly what questions you must ask to avoid being taken advantage of and to make sure you get the best home loan deal for yourself.
Despite the fact that the costs are disclosed, some lenders may include extraordinary "junk" fees in their costs that an unwary buyer may not recognize as an extra fee.
At the time of a loan application lenders are required to give you a written closing cost estimate.
First, determine if your rate has been loaded. Some lenders advertise artificially low rates to attract customers but load up on fees to compensate for a lower rate.
A tip off to a lender that charges hidden fees would be a lender who advertises interest rates that are appreciably lower than the competition. Interest rates are very competitive and shopping for the very best rate may in fact work to your disadvantage.
Differences in rates of 1/8th or 1/4th of a percent result in very little difference in a payment and may be offset by poor service and added hidden fees.
Your only defense against being overcharge is knowledge...
Now, in 2 days time, I'm going to send you a very special video called:
“9 Critical Questions You Must Ask Before Applying For A Mortgage!”
This video will show you exactly what questions you must ask to avoid being taken advantage of and to make sure you get the best home loan deal for yourself.
The Truth about the Home Loan Industry
For the past few weeks I've been working on a very SPECIAL
REPORT which I believe is the TRUTH about what's been going
on in the home loan industry.
Is it controversial? YES
Is it TRUE? YES
I've been in the mortgage industry and know this business
inside out. You can learn from someone like me who has been
Involved in lending millions of rands in home loans and has
seen most of the tricks unscrupulous lenders use to get your
business.
One of the biggest mistakes people make when getting a
mortgage is going to their bank and taking the rate the bank
gives them. Even though the bank often gives a discount off
the posted rate, most of the time they can qualify for a
much better rate.
People think that because they are getting a discount, they
cannot qualify for a lower rate. In most cases, the rates
given by the banks are not the best on the market.
Just think about this for one moment...
Banks don't care if you pay too much in fees. Nobody at the
bank is going to hold your hand and make sure you get the
best deal.
They want you to remain ignorant when it comes to shopping
for a home loan.
Why?
Because, it means extra profit for them. You will end up
paying more upfront fees and closing costs and ultimately a
higher monthly payment for the next 20 to 30 years.
Your only defense against being overcharged is knowledge...
Friday, June 12, 2009
100% Home Loans are Back!
Yes they are, but were they ever gone?
It was the headline news I saw on a lamppost yesterday of one of our leading local newspapers.
100% Home loans were never gone I thought to myself, but there are restrictions. I investigated and came to the conclusion that they were also talking about affordable housing.
I knew that these bonds had never disappeared, but it seems that most people didn't, and with that headline all home owners were thinking that they could now also get 100% home loans.
I'm sorry to say but that's not the case - unfortunately newspapers write headlines in such a way that you'll buy their paper.
100% home loans are only available for those buying in an affordable housing bracket.
What is affordable housing?
Affordable housing constitutes home purchases under R350 000
3 out of the 4 major lenders still grant 100% bonds in this segment of the market but some also have an income restriction.
Purchasers that qualify to buy in this market will still have to pay for their transfer fees and bond registration fees.
But no transfer duty is payable for a purchase price under R500 000
If you just asked yourself that question you would be correct.
But if you look closely I said transfer fees, not transfer duty.
Transfer duty to SARS is exempt for purchases under R500 000, but there is still a transfer fee payable to the attorney to do the transfer of the property.
If you want to know more about home loans, how much you qualify for or what all the costs involved would be, please go to: http://www.gpfmortgage.co.za for more information.
It was the headline news I saw on a lamppost yesterday of one of our leading local newspapers.
100% Home loans were never gone I thought to myself, but there are restrictions. I investigated and came to the conclusion that they were also talking about affordable housing.
I knew that these bonds had never disappeared, but it seems that most people didn't, and with that headline all home owners were thinking that they could now also get 100% home loans.
I'm sorry to say but that's not the case - unfortunately newspapers write headlines in such a way that you'll buy their paper.
100% home loans are only available for those buying in an affordable housing bracket.
What is affordable housing?
Affordable housing constitutes home purchases under R350 000
3 out of the 4 major lenders still grant 100% bonds in this segment of the market but some also have an income restriction.
Purchasers that qualify to buy in this market will still have to pay for their transfer fees and bond registration fees.
But no transfer duty is payable for a purchase price under R500 000
If you just asked yourself that question you would be correct.
But if you look closely I said transfer fees, not transfer duty.
Transfer duty to SARS is exempt for purchases under R500 000, but there is still a transfer fee payable to the attorney to do the transfer of the property.
If you want to know more about home loans, how much you qualify for or what all the costs involved would be, please go to: http://www.gpfmortgage.co.za for more information.
Friday, May 22, 2009
Mortgage Lenders Are Tightening the Belts
Due to the global financial crisis mortgage lenders has been forced to review their lending policy. The banks are also feeling the crunch, and have had to make some tough decisions.
After finding that many clients are battling to service their mortgages the banks have had to repossess more and more properties. The problems increase when the mortgage lenders have to sell off these properties at a lower price than the owner’s outstanding debt.
Due to dwindling market prices, banks often find it difficult to recover the existing debt. If this happens once it won’t make such a big difference, but with increasing repossessions at a market that is deflated, it will hurt the bank in their bank vault.
Drastic measures had to be taken.
Instead of offering bonds of up to 108% of the purchase price, a first time buyer that needs a home purchase loan is now required to have a deposit of 10-20% of the purchase price. In addition, the buyer need to have sufficient funds to cover any fees involved in buying a property. This will ensure that the bank will be able to recover the full outstanding debt, should they have to go down that route.
This, in conjunction with more responsible lending and increasing interest rates, is making it more difficult for first time buyers to enter the property market. With more properties being on the market, but fewer potential buyers, will cause the purchase prices to drop.
Therefore, even though we are going through a global financial slump, with many, including mortgage lenders, fighting for their survival, there is light at the end of the tunnel. This is the opportune time to pick up bargains on the property market.
To apply for a home purchase loan, contact us and we'll be glad to assist: www.gpfmortgage.co.za
Tuesday, May 19, 2009
Home Loans – Step by Step
Owning your own home is very desirable. However, very few have sufficient funds to buy property cash, so they will turn to a financial institution for a loan. The loan will be given with the property as surety. So what are the different steps when purchasing a property using a home loan?
Step 1
Find out how much you can qualify for. Lenders will generally limit the amount you qualify for by only allowing you to use 30% of your gross income for the monthly bond instalment. This means you will be limited in the amount you can qualify and apply for.
So to avoid disappointment, first find out how much you can qualify for. Contact a GPF Mortgage to assist you with this.
Step 2
Start looking around for a property in your price class. When you have found a property you like, sign an offer to purchase.
Step 3
The offer to purchase will be presented to the seller, who will either accept or decline it. If the seller accepts the offer it is time to contact GPF Mortgage again.
Step 4
All documentation needed for the home loan application will be compiled and submitted to a financial institution.
Step 5
The financial institution will scrutinize the application, and valuate the property.
Step 6
The bank will make a decision regarding the loan application based on risk grade of applicant, affordability, and the value of the property.
Step 7
If everything is satisfactory to the bank, a Final Approval will be issued.
Step 8
Transfer and bond registration attorneys will be issued with instructions to transfer the property over to the seller’s name, and to register the bond.
Step 9
Both set of attorneys (in some instances the transfer attorney and the registration attorney can be the same) will contact client to arrange for him/her to sign the legal documentation.
Step 10
All documentation will be sent to the Deeds Office for registration of both bond and property transfer.
Step 11
The first monthly bond instalment will be due within 30 days of registration date
Step 12
The attorney will send the title deed and the bond documents to the bank for safekeeping.
You are now the proud owner of your own home.
To apply for a loan you will have to fill out a short application form. You will then receive a FREE quote from well established, nationally recognized lenders. You do not need to decide now whether the loan is for you.
Just apply and compare the repayments to your current situation. There is no obligation on your part. If you decide that it is not for you, you simply do not have to accept the offer. You have nothing to lose and everything to gain.
Step 1
Find out how much you can qualify for. Lenders will generally limit the amount you qualify for by only allowing you to use 30% of your gross income for the monthly bond instalment. This means you will be limited in the amount you can qualify and apply for.
So to avoid disappointment, first find out how much you can qualify for. Contact a GPF Mortgage to assist you with this.
Step 2
Start looking around for a property in your price class. When you have found a property you like, sign an offer to purchase.
Step 3
The offer to purchase will be presented to the seller, who will either accept or decline it. If the seller accepts the offer it is time to contact GPF Mortgage again.
Step 4
All documentation needed for the home loan application will be compiled and submitted to a financial institution.
Step 5
The financial institution will scrutinize the application, and valuate the property.
Step 6
The bank will make a decision regarding the loan application based on risk grade of applicant, affordability, and the value of the property.
Step 7
If everything is satisfactory to the bank, a Final Approval will be issued.
Step 8
Transfer and bond registration attorneys will be issued with instructions to transfer the property over to the seller’s name, and to register the bond.
Step 9
Both set of attorneys (in some instances the transfer attorney and the registration attorney can be the same) will contact client to arrange for him/her to sign the legal documentation.
Step 10
All documentation will be sent to the Deeds Office for registration of both bond and property transfer.
Step 11
The first monthly bond instalment will be due within 30 days of registration date
Step 12
The attorney will send the title deed and the bond documents to the bank for safekeeping.
You are now the proud owner of your own home.
To apply for a loan you will have to fill out a short application form. You will then receive a FREE quote from well established, nationally recognized lenders. You do not need to decide now whether the loan is for you.
Just apply and compare the repayments to your current situation. There is no obligation on your part. If you decide that it is not for you, you simply do not have to accept the offer. You have nothing to lose and everything to gain.
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