Tuesday, 20 September 2011

Credit Decision for Self Employed People

So what do banks look at when offering a home loan - firstly it is your repayment ability especially the financial position and strength of balance sheet, asset base of the business and the individual and of course the equity.

The there are the actual needs or amount required and providing the bank with the purpose of funds for a home, Holiday house etc.

Credit managers want to know everything about the business income focus being on how income is generated by client and the source of the income and sustainability thereof.

Minimum documents needed are - The latest 2 year signed comparative financial statements. - Signed and dated statement of personal assets and liabilities - Latest 3 months personal & business bank statements. - Where latest financial statements are not available, the latest set of management accounts required. - Kredit inform and ITC or Experien credit checks will be done on company and individuals and the business documents are required to confirm all principles & interest holding.

This is the same for all banks with slight variations whether you go to ABSA, Std Bank, FNB or Nedbank.


Property in jaipur said...

Excellent post information

David from gethomeloans.co.za said...

Borrowers with higher credit scores can get a home loan at a much favorable rate and term than those with poor rating. Such variations can potentially save you thousands of dollars over the full term of your loan. Besides, it's getting harder for potential home buyers to get a loan nowadays if you don’t have a strong credit score.