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.
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