Wednesday, 22 February 2012

SA Budget 2012 - Yes – You CAN Get That Elusive Home Loan In 2012

Yes – You CAN Get That Elusive Home Loan In 2012
It seems as if the light is shining at the end of the proverbial tunnel for those that need to buy homes and need bonds in order to do so. According to Standard Bank, the largest player in the home loans field, it is still possible to get that loan that you need.
Pravin Gordhan will soon put us in the picture with his much-awaited 2012 budget speech, and this, too will have an all-important impact on the lending and housing market in SA in 2012.
Here are a couple of practical points to take into consideration prior to approaching your bank for that all-important loan:
·         Do a little research on the area.
·         Find out exactly what kind of condition the house is in.
·         Do some research into your credit history; this is easily available online and you can make any necessary adjustments if errors appear on your credit report. Compare these reports from the three largest credit bureaus in SA.
·         Armed with this kind of knowledge you will always have the upper hand.
·         Did you know that there are a high percentage of errors that occur on credit reports? These should always be checked on a regular basis so that your credit report is in a healthy state.
·         Ask a professional estate agent to assist in getting a comparable price list of the homes in the area; they have access to graphs and information that is pertinent to this.
·         Obviously, you will have to be able to afford the property; affordability is the key in this exercise.
·         If you are concerned that the budget will affect your already tight purse strings, it might be best to wait for after Pravin Gordhan has delivered his SA budget speech, and only then approach your bank for a loan.
·         You might feel that the budget does not really affect you in your everyday life; but if it is more taxes we have to pay, higher interest rates on our borrowed money, more to fork out on that glass of wine or packet of cigarettes, then it is wisest to hold on a little longer before signing for that much-desired property you already have your eye on.
·         Put money aside when buying your home; there are always costs that are hidden.
·         100% bonds are not common, so ensure that there is sufficient for transfer duties, deposits and anything else pertaining to buying your property.
·         Remember to add in attorneys’ fees and registration costs, too.
·         Hidden expenses need to be addressed, as you will always find there is a lot to be spent on added extras such as electricity deposits and beefing up security.
·         Don’t forget to build in your home insurance, too.
If you feel you might be a little too tight it is a good idea to wait and see what the 2012 budget speech will do for (or against) our borrowed monies from banking institutions; it is always bet to make these important decisions through careful planning.

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