What You Need To Qualify For A Home Loan
One of the biggest steps in your life is buying a home, and for a first-time buyer, the experience is both exciting and daunting! 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 fortunate enough to not have to apply for a home loan when they are looking at buying a home, others, like me, would have to.
In South Africa, the most popular banks to get home loans from would be Nedbank, Absa and Standard Bank.
I contacted the Nedbank home loans department and asked for all documents and forms I would need to fill out when applying.
I also asked them what I needed 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, make sure that you never miss a payment as 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, do not just ignore your statements and payment requests: check up on your credit record every now and then.
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 want 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.
Keep in mind that the monthly instalment is not the only home expense you will have to budget for: you also need to pay the water and electricity, refuse, levies, property rates and taxes, and garden service monthly.
There is no use in buying a home when you can't 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 need to be older than 21 years, need to be employed for at least six months or self-employed for at least two years and need to have a minimum income of about R8000 - R10000 per month.
If you choose to apply for a joint loan with your partner, you might be able to get a bigger loan.
When you meet all these requirements and are ready to apply for the loan, you need to take your South African ID, 3 month's bank statements, payslips and an offer to purchase letter, which is the written agreement between the seller and the buyer on the purchase price of the house.
Once you have all these documents in place, go to the Nedbank home loans department and apply for your loan.
You are just a couple of steps away from owning your first home!
Some people are fortunate enough to not have to apply for a home loan when they are looking at buying a home, others, like me, would have to.
In South Africa, the most popular banks to get home loans from would be Nedbank, Absa and Standard Bank.
I contacted the Nedbank home loans department and asked for all documents and forms I would need to fill out when applying.
I also asked them what I needed 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, make sure that you never miss a payment as 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, do not just ignore your statements and payment requests: check up on your credit record every now and then.
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 want 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.
Keep in mind that the monthly instalment is not the only home expense you will have to budget for: you also need to pay the water and electricity, refuse, levies, property rates and taxes, and garden service monthly.
There is no use in buying a home when you can't 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 need to be older than 21 years, need to be employed for at least six months or self-employed for at least two years and need to have a minimum income of about R8000 - R10000 per month.
If you choose to apply for a joint loan with your partner, you might be able to get a bigger loan.
When you meet all these requirements and are ready to apply for the loan, you need to take your South African ID, 3 month's bank statements, payslips and an offer to purchase letter, which is the written agreement between the seller and the buyer on the purchase price of the house.
Once you have all these documents in place, go to the Nedbank home loans department and apply for your loan.
You are just a couple of steps away from owning your first home!
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