What You Need To Do To Get A Home Loan

What You Need To Do To Get A Home Loan

What You Need To Do To Get A Home Loan

The person that can afford to buy a house for cash is a rare sight. Most people require a home loan of some description, even if not for the full amount.There are a number of documents and procedures involved in getting home loans in South Africa.

You need to have an identity document and South African citizenship to get home loans in south Africa. This is to decrease the risk of you leaving the country without finishing paying for your home loan.

Obviously, you need is a solid job and at least three months payslips if you earn a fixed salary and six months if you work on commission. In addition to this you need the same number of bank statements. This is so that the bank thinking of offering you a home loan can get an idea of how much your income is and what your common expenses are. How much you get approved for depends on your disposable income.

The amount you can get is also dependant on whether you take the extended or standard home loan option. You can get a larger loan on the extended option, but though you pay less each month, you will spend a lot more money on interest.

In order to get a better interest rate, it is advisable to have a good credit rating. You get a good credit rating by making sure that you pay all your instalments on any debts on time. You should also not pay any of your bills late if you can help it. Having a few clothing accounts and paying them promptly can help your credit rating immensely. The better your credit rating, the lower your interest rate will be.

Home loans in South Africa are not to be taken lightly. Repossession is a very real danger. Make sure htat you are able to make the repayments each month else the bank will be entitled to take bank your house and sell it in an attempt to recoup their losses. If you do find yourself in financial difficulty, talk to your bank to see if there is a possibility that you can extend the period of the loan to make the load la little lighter each month. There is also the option of debt counselling, not a very attractive prospect, but effective nonetheless.

If you do manage to get yourself into financial difficulty you can opt for debt counselling. The company you apply through will take over your debt and you pay them back. However this means that you will not be able to take on any new debts of any description until the debt is all paid off.

Whilst home loans are a wonderful commodity, overshooting your mark and taking on more than you can handle is a sure recipe for disaster. Make sure you have a stable job and can afford the cost of the instalments so that you do not end up having your house repossessed and getting blacklisted. You may not need much to get home loans in South Africa, but it takes a lot of self control to pay them off without getting into financial trouble.

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