Wednesday, 16 April 2008

A Home Loan, A Bank, An Attorney and an Estate Agent!


Finally service is the name of the game - that and nothing more.

I thought I would give a feedback on the business of home loans and bond origination and mortgages, just so that we are all on the same page.

It is a while now that the NCA is in play and we have seen that interest rates have climbed and the market has certainly moved and swung more to a buyers market than a sellers market.

Indications are that this is where we will hover for the next 12 to 18 months as world markets settle, food markets settle and we as the players in this market assist folks who are our clients in remaining settled as well.

We are starting to have a life style that costs like it does everywhere else in the world - one way or another - who knows maybe one day we will be serving Zimbabweans as waiters at their restaurants one day - ha!!

Panic strikes in many hearts but do not let it strike in yours - the good news is that living in Africa is a challenge and we thrive on challenges.

So here are some of my thoughts...

BANKS - You have to feel empathy here as they are in the business of making money but need to be very cautious of how and who they lend their money to.

One of the most interesting facts is the way the banks have changed to adapt to NCA over the past few months.

Whereas before you would get a bank financing approval within 5 working days, that's changed 100%. If there is any doubt by a credit manager for whatever reason then you will be stuck with a decline on your loan request - this is even if they cannot read a name/number etc - for the smallest reason - they are terrified that if they lend and get seen to lend recklessly for whatever reason the bank will get nailed - and so they probably will .

The impact - 10 to 15 working days for loan grants - if you are lucky.

So what's occurring is that unless you disclose everything 100% and have EVERY SINGLE REQUIRED UP TO DATE DOCUMENT and THE BANKS GET IT RIGHT THE FIRST TIME then turnaround times are 7 to 10 WORKING DAYS . So be patient and treat your bank right.

Treat each person at the bank like a client with the respect you expect back - it pays great dividends - that's why your reputation is great - lets keep it that way.

CLIENTS who use banks or bond originators remember -

Manage your expectations correctly. The truth is always the only way to go, even if its bad news.

Remember - unless you provide ALL the documents that are asked of you the deal will not happen. You cannot get instant finance - because they are exceptions not norms.

Treat each person in the bank, your originator, your agent, your salesman with the respect you expect back - it pays great dividends - that's why your reputation is great - lets keep it that way.


Something to remember is that everyone, banks, estate agents, salesman, clients, families etc make these holidays a very tough time for all of us. They also need to take leave and if they have kids this is when they do it. So do we all. It means things don't happen as they should during these periods. Be part of this solution not the pain that comes with holidays. If we are going to have problems - it will bite you during and after these holidays - so bite the bullet and be ready for next time.


So the market has changed, but so have we and we need to keep changing and adapting to get better and better. There are very interesting opportunities coming up right now, so lets keep our eyes peeled and ears wide open.
Lots of African Love and Kisses

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