The Pre-Qualification process
Category Buyer Information
When purchasing a property it is best to confirm how much you qualify for. This will confirm the bond amount that you can afford. Below are guidelines, assisting you with the pre-qualification process.
A prequalification certificate indicates how much you qualify to spend on a house. In addition, it indicates how much the bank is willing to lend you.
One can obtain home finance through a bank or through a bond originator.
Direct To The Bank
1. Requires direct interaction with a personal banker.
2. Every individual bank requires a different application form. Therefore, the same application form cannot be used at more than one bank.
3. You will be required to physically present all documentation to the banker.
4. One interest rate or quote will be provided to you.
Bond Originator
1. Eliminates all interaction with the bank by assisting you with the process of establishing a seamless process without leaving the comfort of your own home.
2. The bond originator will assist you with completing one application form that can be submitted to all banks.
3. All documentation can be sent online. Assuring a 100% secure and paperless application.
4. With established relationships a bond originator is able to provide you with numerous interest rates or quotes, finding you the best offer on the market
At Seeff we recommend obtaining home finance through Ooba, South Africa's leading home loan experts.
Through utilizing our in house Ooba bond originators you will be provided with shorter response rates on the processing of your application and a pre-qualification certificate which indicates how much you qualify to spend on a house.
The first step to getting pre-qualified is to provide your bond consultant or bank with a summary of your income, expenditure and debts.
Your bond originator will utilize your financial information to formulate a pre-qualification amount in accordance with your income and expenditure.
Your pre-qualification certificate is valid for 90 days. Thereafter you will be contacted by your bond originator to determine whether your expenses have remained the same or have changed.
If your expenses have remained the same, your bank or bond originator will reissue a pre-qualification certificate.
Should your expenses change during the 90 days your pre-qualification amount will be recalculated according to your new expenses.
Pre-qualification ensures a smooth property purchasing process as it determines what you can afford and in turn what your budget allows for, ensuring that you don't put an offer down for a home that is out of your price range.
Author: Seeff Blouberg
