Pre-Approval for a Home Loan in South Africa

How to get Pre-Approval for a Home Loan in South Africa

Getting a pre-approval on a home loan can considerable speed up the process of buying a home in South Africa. You will also be taken a lot more seriously if you can show that you can afford the house that you intend to buy. This articles gives a short overview of the process involved in obtaining a pre-approved home loan.

Mortgage originators can help you select the best home lender and can obtain a pre-approved home loan on your behalf. A mortgage originator such as Bonus Bonds have online facilities to complete your application and you can do the whole process in the comfort of your own home.

For the pre-approval process to be completed some essential information will be required. The home loan lender will require three to six months payslips or bank statements as proof of income and a income and expenditure report. This information will enable the home loan lender to determine your ability to pay the monthly bond installments.

A credit check will also be done to obtain information on the amount of credit inquiries and credit accounts you have behind your name and to check on your blacklist-status. The pre-approval home loan will be based on your credit scores and your ability to pay the monthly installments. A clear credit record and a high income with low debt will place the purchaser in a position to negotiate a good interest rate.

Although pre-approval does not guarantee a home loan, it will serve as an indication for the seller that the applicant in all probability will qualify for the required financing.