Bond Application - Proactive tips.

You have decided to embark on the journey of searching for a home or investment property.  To purchase said property, you will need to successfully obtain a home loan. Herewith some tips to assist clients in being proactive during the home loan application process.

Appoint a Bond Originator

Of all the tips, this one is the most important. A bond originator specializes in home loan finance.  It is their focus to obtain the best possible home loan offer between all major banks, on behalf of their clients. Your bond originator will be able to assist you with an affordability assessment (to see in which price range you can buy) to streamline your property search.

Important Documentation Required

You have now found the perfect property and require the assistance of your bond originator again, who can provide invaluable assistance during this part of the process.  There are a few standard documents that they will require from all applicants to ensure a speedy and hassle-free home loan application process:

• Copy of identification document
• Copy of marriage certificate (if applicable)
• A copy of the fully signed offer to purchase / agreement of sale
• Bank statements reflecting your monthly income
• Proof of income
• If self-employed, the latest financial statements
• Completed application form

Ensure Good Credit Score

Your credit score will have a major impact on whether you will be successful in your bond application or not.  The bank uses your credit score to determine how much of a risk you are. It, therefore, determines your chances of home loan approval.  For this reason, a good credit score is of the utmost importance.

• Paying all your accounts and contractual debt on time.
• Do not enter into agreements unnecessarily - if it is a want and not a need, think twice.
• Ensuring that your lifestyle is sustainable and paying off your debt as quickly as possible.

Always ensure that you have a good credit score.  

Honesty is the Best Policy.

When submitting your information make sure it is an accurate and honest reflection of your financial position.  Never create an opportunity for the banks to have doubt or disbelieve in financial information presented for your home loan application.  This can have a negative impact on your home loan application.  

Financial Preparation

Ensuring that you have the funds available to cover bond & transfer costs and a deposit should the bank ask for a deposit, could be beneficial to anyone applying for a home loan.  Paying the costs in cash and putting down a deposit, lowers the bank's risk and a better interest rate can be negotiated. 

Unlock your dream home with Sunette's mortgage magic. For free assistance and more useful tips contact Sunette Kriel from CMC Finance powered by Mortgage Max on 084 679 6774.  Let's make your dream a reality!