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Before applying for a home loan: 6 questions to ask yourself
Before applying for a home loan: 6 questions to ask yourself
Author: Pranil Maharaj
Date: 2017-01-20
Date: 2017-01-20
Since the National Credit Act came into effect, prospective home buyers have been required to have their financial affairs in order before they apply for a bond.
While banks have become slightly less stringent since the act's inception, financial institutions are likely to tighten up their lending criteria in 2017 and bond applicants will be put through their financial paces before being approved for a home loan
If you have made the resolution of purchasing a home during 2017, you will need to ensure that you have assessed your financial situation and answered a few pertinent questions before approaching your bank for bond approval. Currently, only around 65% of first-time buyer bond applications are approved, which highlights the importance of being financially prepared before applying.
Here a few financial questions you need to answer before approaching your bank for finance:
1. What is my credit score
2. What is my annual income
3. How much debt do I have
4. What is my financial worth
5. What kind of deposit can I put down
6. What can I afford
Financial preparation is the key to homeownership readiness and will make the bond application process far smoother.
