What You Need To Be Eligible For An A Home Loan
One of the biggest stages in your life is investing in a home, and for a first-time buyer, the experience is both exciting and difficult! Most real estate agents need a letter of pre-approval before they can even start looking for a suitable home for you. Some people are lucky enough to not have to apply for a mortgage loan when they’re looking at buying a home, other people, like me, would need to. In South Africa, the most popular banks to get mortgage loans from would be Nedbank, Absa and Standard Bank. I approached the Nedbank home loans department and asked for all documents and forms I’d need to fill out when applying. Furthermore , i asked them what I required to qualify for a home loan, and it was the following:
You need to have an immaculate credit record. If you have any credit cards, clothing accounts or personal loans, ensure that you never miss a payment since this will reflect badly on your credit record. If you think that you won’t be able to pay this month’s instalment, phone the company and make a payment arrangement with them, most of the companies are very accommodating and will understand your situation. Whatever you do, don’t simply ignore your statements and payment requests: check up on your credit score from time to time. Try to keep it looking at its best. If you see and error on your record, phone and notify them as soon as you can, so they can fix the error from their side. The last thing you need is to be listed as a credit risk, so try to avoid being behind with instalments.
Your income also needs to be adequate enough to show that you will be able to afford your repayments every month. Remember that the monthly instalment isn’t the only home expense you’ll have to plan for: additionally you need to pay the water and electricity, refuse, levies, property rates and taxes, and garden service monthly. There’s no use in buying a home when you can not afford to live in it. Apparently you should not spend more than 30% of your basic income on your monthly instalment. To find out more information on this matter, you need to phone Nedbank home loans department: they will be able to point you in the right direction.
In order to qualify for a home loan, you will also have to be older than 21 years, need to be employed for a minimum of 6 months or self-employed for at least 2 years and need to have a minimum salary of about R8000 – R10000 per month. If you choose to apply for a shared loan with your partner, you may be capable of getting a bigger loan. When you meet all these requirements and are ready to apply for the loan, you have to take your South African ID, 3 month’s bank statements, payslips as well as an offer to purchase letter, which is the written arrangement between the owner and the buyer on the purchase price of the house. Once you have all these documents in place, visit the Nedbank home loans department and apply for your loan. You are just a few steps away from owning your first home!
For more information about Nedbank homeloans visit the website http://www.isureins.co.za
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