Successfully Securing a Home Loan

The process of securing a home loan can be challenging due to the application process, which can take up to two years. This may discourage prospective buyers from following through with their mortgage application.

To simplify the home loan application process, it is prudent to know what to look for and where to apply ahead of time. Preparation is key.

Lenders use a range of elements to determine whether to grant you a mortgage or not. There isn't one simple and complete solution for a successful application but there are tips that can assist you in gaining a favourable response.

A stable and regular income must be shown on your bank statement. 

Financial institutions need to see stability, try to avoid job moves until after the application has been processed.

Make sure your credit is in excellent shape.

A poor credit record is extremely difficult to correct and may take a long time to remedy. A solution would be to clear as much debt as possible. Lower your debt-to-income ratio and keep regular tabs on your credit to avoid any negative repercussions.

Make sure to pay your expenses on time. 

Having a flawless credit history, is no reason to forget or ignore bills because you are overwhelmed with the paperwork and administration. Your lending records are continuous, so any shortfalls before you apply for a home loan would show the lender that you cannot perform well under stressful situations, this may indicate that you may be unable to meet your loan repayments in future.

Avoid taking out extra credit lines. 

Try to limit further credit in the six months prior to applying for a home loan. This could negatively affect your credit score.

Compile your documents. 

The more information you can provide to a lender, the better. This will increase your chances of obtaining approval. Keep all your documentation including the statements for all your loans and credit cards, pay slips, tax returns and anything else.

Applying for a home loan doesn't have to be an arduous task. Know your options and prepare your information in advance in order to avoid unnecessary hassles and come one step closer to achieving your dream home goals!

Contact us for advice on your home loan application:

Tel: 031 566 5416

Email: sarah@primepropertysa.com