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. A mortgage originator such as No Agent have online facilities where you can complete your home loan application in the comfort of your own home.
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.
Monday, 30 July 2007
Monday, 16 July 2007
Should you sell your property before you buy a new property?
Should you sell your property before you buy a new property or is it better to buy first and then sell? Many people prefer to buy the new property first as this makes them feel secure in knowing that they have a place to stay before selling their existing home. This is not necessarily the best option and their is a few things you need to consider before deciding on buying a property before your current property is sold:
Clearer Time FramesWhen you sell your property first your time frames become much clearer and you can use this to your advantage when negotiating the purchase of your new property.
Clearer BudgetAfter you sold your property you will have a much clearer picture of your financial position and you can make a more informed decision on how much you can afford to use as a deposit for the new property. You will also be able to budget more realistically for your new property.
Property Market FluctuationsBuying a new and more expensive property before your current property is sold can cause a sever financial crises. Property markets often fluctuate dramatically and you can be stuck in a situation where you are unable to sell your property for the price you require. You may end up with two properties and two bonds that you cannot afford to pay.
Better Offer on New PropertyIf you sell your property first you will be in a better position to make a clean offer with no conditions attached. This type of offer is usually much more attractive to property sellers and may even be accepted above an offer that is higher but has conditions attached to it.
Better Financial Position The positive equity realised after selling your property will place you in a financially stronger position and you will have a better chance of having your home loan application approved. Use No Agent Home Loans to apply for your bond and have your bond registration costs paid.
Although all these points make a strong argument in favour of selling your property first it is a decision that you have to be comfortable with and your current circumstances may dictate that you will have to purchase the new property first before selling your current property.
Clearer Time FramesWhen you sell your property first your time frames become much clearer and you can use this to your advantage when negotiating the purchase of your new property.
Clearer BudgetAfter you sold your property you will have a much clearer picture of your financial position and you can make a more informed decision on how much you can afford to use as a deposit for the new property. You will also be able to budget more realistically for your new property.
Property Market FluctuationsBuying a new and more expensive property before your current property is sold can cause a sever financial crises. Property markets often fluctuate dramatically and you can be stuck in a situation where you are unable to sell your property for the price you require. You may end up with two properties and two bonds that you cannot afford to pay.
Better Offer on New PropertyIf you sell your property first you will be in a better position to make a clean offer with no conditions attached. This type of offer is usually much more attractive to property sellers and may even be accepted above an offer that is higher but has conditions attached to it.
Better Financial Position The positive equity realised after selling your property will place you in a financially stronger position and you will have a better chance of having your home loan application approved. Use No Agent Home Loans to apply for your bond and have your bond registration costs paid.
Although all these points make a strong argument in favour of selling your property first it is a decision that you have to be comfortable with and your current circumstances may dictate that you will have to purchase the new property first before selling your current property.
Thursday, 05 July 2007
Guide To Buying Property in South Africa
The following are guidelines to help you buy a property in South Africa at an affordable price and to help you make an informed decision on which property to buy.
Research the property market
This means doing your homework by looking in the property section of local newspapers, property publications and internet listings. The internet has become an important tool with which to look for property for sale and you can easily compare various property for sale from the comfort of your home. Be sure though to use property sites such as NoAgent.co.za which have up to date property listings and not outdated listings which have been sold already as this can waste a considerable amount of you time. Compare the size of the property to the asking price and work out how much it will cost per square meter. Now you can compare the price of the property with other properties in the same area to find out if the property is a bargain. You can also look at previous property sold in that area to get a feel of what price you should be paying for the property.
Use an estate agent or sell your property privately
The advantage of using an estate agent is that they usually have a list of buyers which they match up with the property that appears on the market. But the Estate Agent will take a commission which can be avoided if you sell your property privately. NoAgent.co.za will assist you in selling and buying your property privately with features such as free listing of your property for sellers and notifications of property listed that meet your search criteria. They will then also help you complete the necessary documentation for the sale to be completed and NoAgent.co.za also offer home loans services where you can apply for a South African home loan. The savings that you make when buying property privately may just enable you to buy that property which you thought was financially out of reach.
Property owners motivation for selling the property
By understanding the property owner's motivation for selling one can often be placed in a better position to negotiate a bargain. Find out why the owners are selling the property. Do they urgently need money? Are they moving overseas? Have they bought another property already? You can often negotiate the price of the property lower if you know that the owner has some urgency in selling the property.
Eliminate overpriced property
If you have done your research as suggested in the first point you should be in good position to eliminate those properties whose prices are out of synch with other similar sized property in the same area. You usually will have little success negotiating a lower price with owners who overprice their property. If you have time on your hands you can often rather wait a month or two and approach these owners when the property has failed to sell at the original price.
Research the property market
This means doing your homework by looking in the property section of local newspapers, property publications and internet listings. The internet has become an important tool with which to look for property for sale and you can easily compare various property for sale from the comfort of your home. Be sure though to use property sites such as NoAgent.co.za which have up to date property listings and not outdated listings which have been sold already as this can waste a considerable amount of you time. Compare the size of the property to the asking price and work out how much it will cost per square meter. Now you can compare the price of the property with other properties in the same area to find out if the property is a bargain. You can also look at previous property sold in that area to get a feel of what price you should be paying for the property.
Use an estate agent or sell your property privately
The advantage of using an estate agent is that they usually have a list of buyers which they match up with the property that appears on the market. But the Estate Agent will take a commission which can be avoided if you sell your property privately. NoAgent.co.za will assist you in selling and buying your property privately with features such as free listing of your property for sellers and notifications of property listed that meet your search criteria. They will then also help you complete the necessary documentation for the sale to be completed and NoAgent.co.za also offer home loans services where you can apply for a South African home loan. The savings that you make when buying property privately may just enable you to buy that property which you thought was financially out of reach.
Property owners motivation for selling the property
By understanding the property owner's motivation for selling one can often be placed in a better position to negotiate a bargain. Find out why the owners are selling the property. Do they urgently need money? Are they moving overseas? Have they bought another property already? You can often negotiate the price of the property lower if you know that the owner has some urgency in selling the property.
Eliminate overpriced property
If you have done your research as suggested in the first point you should be in good position to eliminate those properties whose prices are out of synch with other similar sized property in the same area. You usually will have little success negotiating a lower price with owners who overprice their property. If you have time on your hands you can often rather wait a month or two and approach these owners when the property has failed to sell at the original price.
Subscribe to:
Posts (Atom)