First things first; did you know that only 1 in 4 home loans are approved?
With that information in mind, here are some guidelines on what you will need when you go and apply for your home loan.
What the banks will need:
- Proof of income
- Proof of address
- 3 months’ bank statements
- Identification documents
Side note – if you are self-employed, you will need at least 6 months’ bank statements or financial reports.
What will happen?
The bank will run a check on your credit profile, i.e. spending and past instalment behavioural patterns.
What they look for:
- How well you pay your bills each month,
- Whether you pay in full and on time,
- How much debt you have and how many times you have applied for some form of credit.
The higher your credit score is, the better; however, if you have no credit, a profile will have to be built up before a bank will consider your application.
Creating a credit profile
All you need to do to start up your credit score is: open up +- 2 retail accounts which you pay monthly on time and in full for 6 months. This will show banks that you are reliable and consistent, making you a worthy candidate.
For a free credit report go to www.mycreditscore.co.za
Online home loan application https://www.sahomeloans.com/application