Make sure your home loan application is successful

Make sure your home loan application is successful

March 2010 - With house prices firmly back on an upward trend and banks beginning to relax their lending criteria for home loans, consumers are increasingly looking to get back onto the housing ladder.

As the property market becomes more competitive, however, it is vital for consumers to make sure they are well prepared and can act quickly when an offer is accepted.

Craig Deats, Executive Director of ooba - South Africa's leading bond origination company - has the following advice for potential homebuyers when applying for a home loan to ensure they have the ultimate opportunity for success on their bond applications.

1.Make sure you are aware of all the costs involved in buying a home. In addition to arranging a home loan and paying a deposit there are a number of other costs involved including legal costs, transfer duty, bond registration fee and bank charges. These will need to be paid in order to complete the process.

2.It is advisable to have a clean credit record before applying for a home loan. As a result of the National Credit Act and current market conditions, banks have tightened their lending criteria and a negative credit record may impact the result of your home loan application.

3.Provide your bank or bond originator upfront with all required information and documentation requested. Each bank has their own set of criteria so ensure that you have met the requirements of each lender.

4.Make use of a reputable bond originator, who can assist you by facilitating bond negotiations with all major lenders in one simple process from prequalification to registration, with less hassle and minimal paperwork. They also provide regular feedback of progress on your application.

5.Shop around with multiple lenders. According to the latest ooba statistics, 19.8% of applications in January 2010 that were declined by one lender were approved by another, indicating that it is important to approach multiple lenders to ensure a positive outcome on your home loan. Shopping around also ensures that you get the best rate on offer.

Hello ooba news

Leading bond originator, ooba, has launched a new franchise brand, oobalink, that will give franchisees the opportunity to benefit from the established ooba group's branding and national footprint.

The concept of taking out credit has been given a hard time in recent years - following the sub prime mortgage crisis in the US and rising levels of indebtedness in South Africa.

New statistics released by ooba - South Africa's leading bond originator - show that self-employed South Africans are finding it increasingly difficult to have their home loan applications approved compared to their employed counterparts.

Location and price most important to South African homebuyers

House Price Indicators Point Towards Positive Outlook