We had a conversation with Ute Kock, home loan consultant at # Home Loans and trusted partner to Home and Hectare clients in Gqeberha, to discuss the current real estate market. Ute shared with us some important information that home buyers and sellers should keep in mind during this time.
In South Africa, a good credit score is typically considered to be between 660 and 699, while a very good credit score is between 700 and 799, and an excellent credit score is above 800. However, the credit score required to be approved for a home loan can vary depending on the lender’s requirements and the specific home loan product being applied for.
In general, a higher credit score can increase the chances of being approved for a home loan and may also result in better interest rates and terms. However, lenders also consider other factors such as income, employment history, and existing debt when evaluating a home loan application.
It’s important to note that having a good credit score is not the only factor that determines whether a home loan application is approved or not. Lenders will also consider other factors such as the property value, the loan-to-value ratio, and the borrower’s ability to repay the loan.
You can request a free credit report from a credit bureau such as TransUnion or Experian to check your credit score and ensure that there are no errors or inaccuracies on your credit report that could affect your ability to obtain a home loan.
If you are self-employed and looking to apply for a home loan in South Africa, you will typically need to provide additional documentation and information compared to a salaried individual. Here are some of the documents and information you may need to provide:
Just because you have a home loan for your current home, does not guarantee that you will get for a new home, so it is important to get pre-qualified before selling your home. Lenders will look at your financial situation afresh, and any changes –
Being pre-qualified for a new bond before selling your home in South Africa can also provide several benefits:
A bond originator can be a helpful resource for both existing home owners and first-time home buyers in South Africa. This Service to the client is FREE.
Here are some of the ways in which a bond originator can assist first-time home buyers:
In summary, a bond originator can provide valuable assistance to first-time home buyers and those who have owned property before, working in South Africa and abroad as well as non residents. From access to multiple lenders and pre-qualification to assistance with documentation, negotiation, and ongoing support.