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A Home Loan to Pay for your Property (Home Loan Application) continue…
By arlene | September 9, 2008
Some hints to bear in mind:
- Complete the application form as thoroughly as possible. Any blank space will result in a delay as the bank requires that information.
- It is advisable to rather supply too much information than too little.
- Provide the bank with proof of any regular additional income. If you are divorced for instance, the child support you receive every month should reflect on your bank statements. Supply these to the bank to enable them to take this income into consideration when reviewing your application.
- Lodge your application with the bank as soon as possible. The Offer to Purchase will contain a deadline for financing to be approved. You wouldn’t want to lose your dream home because you snoozed!
Employer’s subsidy
You might qualify for a housing subsidy from your employer when you buy a house.
Get the details from the relevant department within your organisation. Find out exactly what that possible housing benefits offered by your employer entail. If they include an additional monthly amount once you bought a house, this income should be included in your budget.
Employer’s guarantee
Enquire from your employer whether you qualify for an employer’s guarantee. Also find out what amount this guarantee will be for. Some employers (notably government departments) provide their employees with a guarantee to the bank equal to the amount required for a deposit.
In effect the employer guarantees that if the employee defaults on the home loan, the employer will provide the deposit amount to cover any losses the bank may suffer.
Pre-Approval
If you feel a little uncertain about whether you will get a home loan, and about the amount a bank will lend you, the pre- approval certificate offered by all the major banks will give you peace of mind.
You will still need to approach the bank, either through your estate agent or mortgage originator, or directly at your local branch. The bank will require the same documentation mentioned previously and after consideration will issue you with a certificate allowing you to purchase a property up to a specified amount. Although the property will still have to be valued by the bank’s assessor, at least you know for how much you can buy; and you could negotiate with the seller because your credibility for affordability has already been assessed and approved by the bank.
A pre-approval certificate is normally valid for 90 days to afford you sufficient time to locate the perfect property.
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Topics: Agent, Department, Form, International, Investment, Property, Residential | 5 Comments »
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