Myquestions

Recently I was wondering what the procedure for the application of a home loan was in South Africa. The major concern I had was the fact that do all the authorities follow the same evaluation process or they each have their own application and assessment process. I decided to get some information from a friend of mine (a former NEDBANK employee) who was well versed in the application process and basically this is what they told me.

Basically the home loan process begins with you waking up one morning and deciding that you can finally afford to buy a house, you look around and find the house then you go apply. The application process starts as follows:

First you need to request and receive some sort of pre-approval from the bank that allows you to start hunting for a house, and you can do this via estate agents, websites, the local press or by general word of mouth.

The next step is to secure the property via the estate agents then take your application in to be evaluated by the banks loan officer.

In the evaluation the necessary authorities look at your application and evaluate it according to the following criteria:

· Value of the property – If they can regain their money if they sell the house if you are unable to pay your bond
· Your personal credit history – They look at your job, the amount of salary that you are getting and your credit history and also the current assets that you own.

The Approval/ Denial of the bond application, this is where you get approved in which case the, mortgage is given to you and then conveyance of the property into you or the banks name takes place.

Bond originators:

You can also use these agencies to help you apply for a bond, these agencies usually consist of highly trained individuals who are well versed with the application process and can assist you in getting the bond for the lowest rate. They usually charge a fee, but it is worth it because they help minimize the risk of being denied. They also have interactive features that allow you apply for your homeloans online and this can help if you dont want to leave the house.