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Tips for applying for a bond

Tips for applying for a bond

Author: Pranil Maharaj
Date: 2017-03-31

The stats show that most people who are buying a home need finance for it. Here are a few essential tips for buyers who are applying for ahome loan.

First things first - Before applying for a bond, buyers need to pull their own credit report, to see if there is any information on the report that could hamper their chances of getting their home loan approved.

Get rid of credit - The next step is to get rid of any credit that buyers no longer need or use, as credit has a negative impact on the affordability ratio's, as determined by financial institutions.

Applying for a bond - The best way to make the bond application process quicker is to apply for pre-approval from a bank or mortgage originator, before buyers begin their search. This will give the buyer a good idea of the price range that they should be looking in, and they can narrow down their property search accordingly.

Location, location, location - Banks provide different interest rates on home loans, depending on the area in which the property is located.

Bear in mind - Buyers need to bear in mind that the bank can withdraw their bond approval at any point during the sales process. It's advisable for buyers not to take on any debt during this period, or make any large purchases, until the home has been transferred into their name.