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How to get a home loan in South Africa

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how to get a home loan in south africa

check your credit score

The first step in getting a loan is to check your credit score. You will need to know what it is before you apply for a bond, as this is one of the factors that lenders consider when determining whether or not they want to lend money to you.

Your credit score is a number that reflects how reliable you are as a borrower and how much risk there is in lending money to you. It’s calculated by taking into account all of your previous financial dealings, such as whether or not you have paid off any loans on time, if there has been any defaulting on payments and so forth. Your credit score can also take into account things such as having an active bank account with enough funds available (accounts must be open for at least six months before they start being considered).

A good score will improve your chances of getting approved for home loans because it indicates that creditors see no reason why they should not trust someone who has proven themselves responsible with their money in the past; hence why it’s worth taking some time out from applying just yet so we can help improve yours!

Protect your credit score

Protect your credit score

If you want to get a home loan in South Africa, or if you’re looking at any other form of credit, it’s important to make sure that your credit history is in good shape. The best way to do this is by paying all bills on time and keeping debt under control. This means:

  • Paying bills on time – do not be late with any payments (including rent), even if they are small ones
  • Keeping debt under control – don’t take out loans or sign up for credit cards unless you really need them; try not to borrow more than 80% of the value of what you own; keep all debts low relative to income

Check if you qualify for a home loan.

Before applying for a home loan, it is important to know if you are able to qualify. To check whether or not you can get the loan, use the following steps:

  • Check your credit score and report. It is important that you have a good credit history before applying for a home loan. A high credit score will help improve your chances of getting approved.
  • Review your income and expenses. The lender will use this information when calculating how much money they should lend you, so make sure that all of the details are correct in order to ensure that they don’t miss anything out and end up approving less than what they should have done!

save for your deposit

The first step to getting a home loan is saving up at least 20% of the purchase price of the property. This means that if you want to buy a house worth R1 million, you’ll need to save R200 000. You can apply for a home loan with less than 20% deposit but it will increase your interest rate.

study the market and choose a property.

Your next step is to choose a property that you want. You should find a property in a good area and one with good resale potential. It is also important to choose a property that is within your budget, has good security, and is located in an area with good schools.

You can search for homes for sale on websites like www.estateagentweb.co.za or www.realestate-sa.co.za

find a bond originator

  • Find a bond originator.
  • Make sure they are registered.
  • Bond originators must be registered with the Financial Sector Conduct Authority (FSCA). You can check if they are by looking on their website, or through the National Credit Regulator (NCR)’s register of financial service providers and credit businesses.

Apply for a home loan.

Once you have put together all the documents required, you are ready to start looking for a home loan. The first thing to do is research the different type of home loans available and decide which one best fits your needs.

You need to know how much can afford to pay each month on a home loan before applying, as it will determine which type of loan would be best suited for you.

There are two types of bond originators: direct lenders and brokers (independent financial advisors). A broker helps with all stages in obtaining a bond and generally charges an upfront commission related directly with the amount being borrowed; whereas direct lenders do not take commissions, but instead charge fees based on their own costs associated with processing applications through their systems. It may also be possible that both types of originator work together so there is no overlap in costs or complications regarding ownership between them!

Thereafter comes settlement day – this is when all closing documents get signed off by everyone involved before payments start flowing into your bank account every month!

Follow these steps to get a home loan in south africa.

So you want to buy a home? Great!

But before you get the keys, you’ll need to know how much money you can borrow and which lender will offer it at the best rate. Here’s what happens when:

  • Check your credit score
  • Protect your credit score

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