When you have fallen head over heels in love with your dream home, it
would be a terrible shame not being able to get a bond to finance your
dream.
The strict requirements of the National Credit Act has made it really
tough securing a bond, and having negative credit records and bad debt
will not help in your securing a home loan. Earning extra monies or an extra income and having assets will not necessarily a guarantee to you securing a home loan.
Being well- prepared to make an offer on your dream home purchase before house-hunting is not a bad idea.
First and foremost make sure that you can afford your home purchase.
Be aware of all the costs that will come with the purchase of your new
home, long before you even apply for a bond.
Costs will include legal costs, transfer duty costs, bond
registration fees and also bank charges – so take these factors into
consideration when shopping around for a bond.
Make a list of all your income and expenditures for your bond holder.
You will be able to work out how much you can afford simply by utilizing
the easy-to-use affordability calculator that banks offer online.
A bond originator versus the DIY option is another point to consider.
The bond originator will help you to negotiate with all the banking institutions on your behalf, and will find the best deal on offer for your individual needs.
This is a free service to the applicant as the banks will pay the
commissions owed to the originators – nothing will come out of your
pocket. This is a really nice way to apply for a bond as the originators
will take all the leg-work out of the exercise and you can concentrate
on other issues instead.
Ask your bond originator which banks will accept their services as
some institutions have stopped this service.
Look at interest rates as this can mean a substantial saving down the
line.
Shopping around for your home loan
is a good idea as this will indicate which packages are available and
what type of interest rates are on offer. You own bank will not
necessarily offer you a bond.
Last but not least ensure that you have all the relevant documentations.
