Documents Needed When Applying For A Bank Home Loan
Buying a house is one of the most significant (and biggest!) acquisitions many people would make in their lifetimes! Hence , it is a good idea to do a bit of homework ahead of time so you are confident that you will fulfill all the demands and requirements necessary to be eligible for an a bank home loan.
Let’s have a look at a couple of the documents that you would ought to prepare before applying for a house loan. This is a typical set of documents and will not differ much from lender to lender.
The very first item on the list is a copy of your ID document. This usually needs to be certified to prove that is a copy of a genuine ID. In some instances your driving licence might be enough, but most companies would only accept a copy of your actual identification document.
Secondly you’d need an offer to purchase. This is not a legal contract yet, but simply a proposal to buy the house in question from the seller. An offer to purchase would normally include a summary of the home (the address etc) as well as the amount that you intent on paying for this property.
Because a bank home loan is such a large loan, you will need to prove that you can afford the purchase. For that reason banks or lending institutions would have to see your proof of income. This is in the form of a salary slip if you are employed and auditors’ letters or statements of your debts and assets if you are self employed. A Close Corporation or Company certificate would usually also be needed if you are your own boss.
In addition to the above proof of income you would also need to supply the banks with 3 months personal bank statements (if you are employed) and 6 months personal and business statements if you are self-employed.
If a company or close corporation wants to apply for a bank mortgage loan, they’d need all the above documents as well as a couple of additional forms. This will include a duplicate of the company’s latest financial statements, details of all the directors and associates of the company, the company’s founding statement as well as a resolution by all directors or members indicating who will be responsible for signing the application form and all related documentation.
If a trust is applying for the loan, the paperwork will need to be accompanied by a copy of the trust deed and once again a resolution advising who will be responsible for signing all the relevant forms.
Try to get all your documentation in place before you decide to approach a bank or other lender for a home loan. As this is quite a comprehensive application, it would be safer to have all the documents prepared in advance, to avoid waiting times with the application. No company will start processing the application without having all the required documentation.
Happy house hunting! May your home loan application process be fast and pain-free!
For more information about a bank home loan visit the website http://www.isureins.co.za
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