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
Monday, December 21, 2009
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.
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