You Could Soon Be Cutting The Grass Of Your Own Casa

You Could Soon Be Cutting The Grass Of Your Own Casa

If you think of the term home loan, I suppose that you are only thinking of the initial purchase of a house. Did you know that it is possible to take out an additional loan on top of your home loan? This is referred to as refinancing your home and the money that becomes available through this further loan can then be used for renovations or improvements to your house, for education and many other justifiable reasons.

Investing in your own property is probably one of the greatest choices you will ever make and not many individuals can manage this without some financial aid - generally in the form of a home loan. Home loans South Africa can be obtained through banks, loan companies and home loan companies. If you do a bit of research you are almost guaranteed to find a company or institution willing to lend you the required money for the purchase of your perfect house.

Various kinds of loans can be found including loans with a fixed rate of interest to loans with a variable interest rate. Banking institutions realize that property is a comparatively safe investment to make and the associated risk of supplying the lender with the required amount of money is not as high as with a few other loans.

With the option of being able to pay home loans South Africa back over a period of 20 or even 30 years, buying a home becomes more and more affordable for many individuals.

The most important thing to do before you even think of approaching a mortgage company, is to check if your credit score is clean. If you have a poor personal credit record, chances are that you will be showed the door very quickly as no company is keen to finance a high risk client. You'll be able to check your credit rating yourself - generally your first report will be issued totally free, but this differs from country o country. Your credit score will be used to determine your interest rate, the amount you need to provide for a down payment and even the maximum amount that you will be allowed to borrow.

A stable work history also goes a long way when loan companies are reviewing your profile. If you have changed jobs every few months for the past years or if you are jobless you will also fight to obtain a home loan. Usually you will only be considered for a home loan if you have been with the same employer for 6 months or more.

Attempt to get prequalified. Do not get confused with prequalified and preapproved. Prequalified means that you provide the financial institution with a list of data and the lender will then (based on faith in the information you supplied) estimate how much you can afford to spend on a home.

Obtaining a home loan South Africa is not unattainable. A stable credit and work track record goes a long way and you could soon be cutting the grass of your own little casa!

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