Before you put in an Offer to Purchase, this is the very first thing you should do - get yourself pre-qualified for a bond.
Getting yourself pre-qualified before putting in an Offer to Purchase should be the first step you take. The National Credit Act stipulates that monthly deductions, e.g. income tax, monthly living expenses and debt need to be taken into account. Your level of debt can affect the amount for which you qualify. It is advisable that you provide your ooba home finance expert with an accurate summary of your monthly expenditure so your pre-qualification amount can be determined. Your ooba home finance expert will formulate your pre-qualification amount and issue you with a certificate. This enables you to provide an estate agent with a pre-qualification certificate that has been calculated according to the National Credit Act requirements.
Your pre-qualification is valid for 90 days. After 90 days your ooba home finance expert will contact you to check whether your expenses have changed over this period. If there has been a material change, the pre- qualification will be recalculated and revalidated. If there is no material change to either income or expenditure, ooba will reissue a revalidated certificate.
Once the banks have assessed your home loan application, and if the application is successful, the bank will issue a Quotation which will include interest rate, cost of credit, any special conditions that may apply, etc. Your ooba home finance expert will discuss this and other bank quotations with you. Once you agree on a Quotation, ooba will notify the relevant bank, who in turn will proceed to instruct the attorney appointed to register the mortgage bond.
If you’re in the property market, or just considering buying your first home, you should be thinking about these things in 2014 to save you money and to protect your investment. Make one of these resolutions now, and stick to it!