- First determine your credit record and what you can afford using our free, online tool, the Bond Indicator.
- Once you’ve found a property you like, make an offer to purchase. You can only apply for a home loan once the offer has been signed by you and the seller.
- Use a home loan comparison service such as ooba Home Loans to get the best deal on your home loan by submitting your application to multiple banks.
So you’ve decided to make your dream of home ownership a reality? As you may be aware, a home loan is the means by which you fund a home purchase.
So how do you go about applying for a home loan? We sum up the process for you.
How to apply for a home loan in 6 steps
- Determine what you can afford.
- Check your credit record.
- Find a property you like.
- Make an “offer to purchase”.
- Organize the documents required.
- Use a home loan comparison service
1. Determine what you can afford
- To find out what you can afford, you should get prequalified.
- You can get prequalified by using our free, online tool, the Bond Indicator.
- You can also use our Bond Calculator to calculate what you would qualify for and what your monthly repayment on the loan will be. You just have to enter your monthly income, total monthly expenses, and the term and interest rate of your loan.
2. Check your credit record
- Your credit record is the most important factor when applying for a home loan.
- You need to know if your credit record is high enough. If not, you should take time to improve your credit record before applying for a home loan.
- You should have a credit record of at least 610 if you want your application to succeed.
- You can find out your credit record by getting prequalified using our Bond Indicator.
3. Find a property you like
- An estate agent can be an invaluable assistant in helping you find a property that meets your requirements.
- Try to attend house viewings instead of just relying on photos of a property.
4. Make an “offer to purchase”
- Once you’ve found the property you want, you need to agree to terms with the seller.
- To do this, you make an offer to purchase; a document that contains the terms and conditions for the sale to go ahead.
- Both seller and buyer will want to name their terms and conditions.
- Terms and conditions that serve the interests of the buyer include requiring a home inspection to be conducted and for the seller to fix patent defects.
- You can only apply for a home loan once you and the seller have signed the offer to purchase.
5. The documents required
Documents you will need to submit:
- A copy of your ID.
- A signed copy of the offer to purchase.
- Proof of income.
- Six months’ worth of bank statements.
A home loan comparison service such as ooba Home Loans can help you organize and submit the necessary paperwork.
6. Use a home loan comparison service
- Don’t just apply to one bank, apply to multiple banks so you can see which ones offer the best deals.
- You can do this with the help of a home loan comparison service such as ooba Home Loans. We have relationships with all the major banks and will submit your application to them on your behalf.
- Submitting to multiple banks will allow you to compare the packages they offer and choose the one with the most favorable interest rates.
We also provide a range of calculators that can help make the home-buying process easier. Start with our Bond Calculator, then use our Bond Indicator to determine what you can afford. Finally, when you’re ready, you can apply for a home loan.
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Ooba home loans services are simply the best. My Consultant Bianca Dancer was so hands on and helpful from the get go. She guided me through the entire process and put me at ease being a first time buyer. I highly recommend their services.
Jay Govender and Maleshini Reddy from OOBA provided outstanding assistance and guidance in securing our home loan. Response times were excellent and they were professional and friendly.
Estelle Vorster was really helpful in securing the best deal for my home loan, she not only negotiated a lower interest rate she went as far as securing 50% discount on the transfer costs.