Since the economic downfall, getting a South African home loan has become more difficult. So it helps to fully understand home financing so that you can present your best offer and make sure that the home loan process goes well. A good starting point will be to find South Africa home loan officers, financial planners and real estate agents. Here on LikeMoney you can compare various home loans offered by different companies and financial institutions. That’s why it’s best to get the basics for a South African home loan, so you can secure the best homer loan for you in no time.
It is important to know that banks qualify lenders on income first, not savings. A general rule of thumb is that not more than 40% of your pretax income can go to principal, interest, taxes and insurance as well as any monthly debt obligations like vehicle finance, student loans or credit card debt. Home Loans lenders will also take note that you are eligible for the down payment, closing costs and at least three months of cash reservers that cover your PITI as well as debt obligations.
Pre Approval is the process of working with your home loan finance officer to take note of your income, assets and other pertinent issues so that you don’t spend time looking at homes that you can not afford.
You should check your credit score before deciding to take out a home loan. This is before a low credit score can increase the interest rate on your home loan or even prevent you from getting the home loan altogether. You can improve your credit score by paying down balances and checking your credit report for any mistakes. By law you have the right to get a free copy of your credit reports. You can also pay to get your credit scores.