Friday, 8 July 2011
The banks get tough in their home loans lending
Interest rates of -2% below prime - forget it - you are lucky if you get prime and it will get worse for a while. But our rates are at their lowest in 30 years so that's great news.
1 * Bounced cheque on your last 3 months bank statements - better you wait until the next three months cycle before you apply for a mortgage.
Adverse on your credit report - get it sorted and get it removed and get letters and even then you are bound to be declined by the banks first.
A Judgement - get someone else to buy the house because you are just not going to get a loan, unless you own your own bank.
Get a credit check if its the last thing you do and understand it.
Self employed - well you need about three tonnes of documents including 3 years financials, 6 months business bank statements, blood tests and 6 financial sponsors - very tough at present.
If you earn as a salaried employee an amount of between R 10 and up in overtime, commission you better get your 6 months payslips, commission statements and letters from your company proving that you earn occasional extra income otherwise your whole profile will be seen as suspicious and you WILL be declined.
if you are non-res, non SA type make sure that you have approval to bring your money in, an excellent money transfer service, attorneys that are jacked up and 50% is the max you will get and probably from 2 banks only.
So folks that's the good news....and its bound to get better.
Want a home loan - well use a mortgage originator because they are the only people who will tell you like it is as they earn their hard earned living from this business.