Hunting for a house can be a very enjoyable experience. Driving across suburbs looking for the house of your dreams with your spouse is a pleasant and gratifying experience. Then again, once it becomes time to look for financial support – the dream frequently turns into a bad nightmare. South Africans understandably loathe the thought of visiting their local bank or loan office for fear of denial. Do I earn enough money? Is my credit adequate? Can I actually achieve the dream of owning a house?
The answer to the abovementioned question is yes, but you need to be prepared. The following are a few tips to enhance your odds of getting that first home loan and taking your first step toward staying in your own house.
A home loan is an investment: Banks and credit unions aren’t in the charity business – They exist purely to make a profit. When you request a home loan, you are essentially asking the bank to invest in your future. Banks aspire to loan money to individuals who can repay more than what they lent. Banks typically wants to say yes, but they need to gauge their risks. The fact remains – supplying people with money with the expectancy that they will give you more back is an uncertain business. The more you can do to set a loan officer’s mind at ease, the better chance you have of receiving the money.
Be totally prepared: Always research the type of loan you are applying for. Purchasing a house is a huge undertaking and you don’t want to enter the loan process without any prior knowledge. Do some research online on how to apply for a loan, and what you can expect. Chat with your friends who have gone through the process and ask them how they went about it.
Try to save money:In any loan situation, you always look more worthy if you can put down some of your own money. This demonstrates to the lender that you are financially reliable, and that you have devoted your own capital and commitment to achieving your goal. On the other hand – If you appear as someone who just woke one day and decided to purchase a house, you most likely won’t impress the loan officer. The loan officer will probably assume that you are going to have second thoughts in a few months or once payment becomes demanding. But if you can demonstrate that you have saved some money – you display the commitment required to make monthly payments on a loan. As a matter of fact, if you can show you struggled for a while to save enough money for a down payment on a house, you should appear far more appealing to a loan officer.
Don’t accept the first opportunity you get: Hunting/Shopping for a home loan is like looking for anything else – there are good and bad deals. Inquire about the repayment terms, financial charges and all that jazz. Next, shop around to see what else you can find. The fact that you are willing to wait a while can occasianlly convince a lender to supply you with terms that are more agreeable.
Get help: Get help from a bond credit agent or a qualified real estate agent. These professionals have been through the entire process and are able to give you precious advice. These individuals earn their living by helping people to buy houses.
Finally – Never give in. If you are committed to owning a house, there will be a solution for you.
The following article was provided by ScribeZA for top South African Home loan providers.