The Benefits of a Pre-Qualified Home Loan
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Being pre-qualified for a home loan is a recommended and essential step before you start house hunting, as it will confirm the bond amount for which you will be able to qualify, especially of you are a first-time home buyer.
This amount is not a guarantee from a Bank but rather a guideline to be used when house hunting.
There are two ways in which to apply for a pre-qualified home loan.
1. Go to your Bank who will evaluate your loan rate based on your history with them.
2. Use a Mortgage/Bond Originator. They will help you apply for a bond at multiple lenders, allowing you to compare quotes. They help deal with all the tedious paperwork and can generally ensure you get the best deal. A bond originator has the experience to know exactly what the banks will want to see in order to grant you the best bond deal possible.
What you will need to apply:
- Latest payslips
- 3 months' bank statements
- Proof of identification
- Other relevant documentation (depending on the bank/originator. Check with them)
Once your application has been approved, the Bank will issue you with a quote stating information pertaining to the pre-qualified loan. Mentioned on your pre-qualification will be the bond amount, the interest rate and the instalment amount.
It is important to note that the final bond approval is subject to various factors such as the Bank's property valuation and a signed Offer to Purchase.
Contact our Dynamic Duo of Residential Property Brokers, Diane Potgieter & Michaela Chalupsky, for any further advise.
Author: Admin