Where Do I Start When Buying A House
When we are in the market to purchase a house; we are often of the illusion that the first step is viewing a property.
Well; ultimately keep this this question in mind; ‘Will you buy your groceries without taking any money or any other legitimate ways to purchase?
Interesting enough; if your honest answer was a resounding ‘No’; then why would you view a property first without knowing if you have the money to purchase such a property?
Statistics show that there are approximately 100 buyers for every property on the market; but only 12 will qualify as legitimate buyers.
Would you like to be part of the 88 buyers without qualification or the 12 buyers with?
Why do you think that only 12 buyers will qualify?
In a nutshell it is about receiving a pre-approved bond and a print out of your credit rating. Both of these can be obtained from your bank. You also can obtain a pre-approved bond via fnbpropertyleader.co.za. It is important that you need to know this information before feeling disappointed when your dream home is out of your reach.
Pre-Approved Bond
A pre-approved bond will show you the amount you qualify for as a potential purchaser. Therefore 88 of these buyers fail to qualify to buy a property because they want to buy a home beyond what they can qualify for, hence they don’t know how much they qualify for as they are without a pre-approved bond. Obtaining a pre-approved bond will save you time and disappointment to search for that dream home knowing the correct amount limit that you can afford.
Credit Check
Why is your credit rating so important?
A good credit rating is 720+ and below 580 is a bad credit rating.
So, if your credit rating is good, you have a good chance your bond will be approved but if your credit rating is low then in all probability your loan would not be approved.
It is also important to know your credit rating as you might find out if there is any judgment against your name. Knowledge is empowering so if you unknowingly have a judgement against you, you can rectify the situation as soon as possible. The banks provide one free credit check per year.
Banks won’t issue bond loans if you have NO credit history, banks will not issue bonds. This is a difficult concept to understand but they need to know how credible you are to make payments towards your mortgage bond.
If you are without a credit record; I suggest that you apply for a credit card settle them within a 30 day time period, this should continue for six months. After six months; you should have a good credit rating and then you can try again. Please don’t abuse the facility to assist your credit rating or your credit rating will be very low. Overspending and not paying back will result in a bad credit history and you won’t be able to apply for a home loan.
Remember that when you find that dream home and before the bond is registered the bank will do a final credit check and if they find that you went for a “shopping spree” and your credit rating is down they can cancel your bond. Try to manage your financial situation to the best of your ability during the bond application period. The aim is to find a home your family can share and fill them with memories.
Credit Score Description
720+ Excellent credit score. You should qualify for the best. interest rate and loan terms.
700 – 720 Good credit score But could be difficult to get loans for bigger items.
640 – 700 Average credit score. You may qualify for the loan but not at a good interest rate.
580 – 640 Poor credit score. You will have a tough time getting a loan or a credit card.
Below 580 Bad credit score. It’s doubtful that you will qualify for a loan or a credit card.
I wish you all the best in securing your dream home.
If you need more advice; you contact me. My details are below:
Choprop Sales and Letting Vaal
Conrad Maritz
Mobile : 082 888 7796 (also on whatsapp)
Email : conrad@choprop.co.za
Facebook : ChopropConrad
Website : www.choprop.co.za