What is it that bond originators do and why not go the D.I.Y route?

What is it that bond originators do and why not go the D.I.Y route?

such a great question and you will always get your pros and cons depending on whom you are speaking to.

We do know that bond originators often shop around and are kind of impervious to which bank you are looking at but finding someone that is great is not always easy.  So do you get references?  I would.

Bond originators assist you by negotiating with all the major lenders on your behalf, thus taking the fear out of applying for a bond and even work with SA Homeloans, BMW finance and Investec not just Standard, ABSA, FNB and Nedbank.

The service of a bond originator is free to you, the applicant – this is because bond originators get paid by the banks.

This means less leg-work for you and a lot less admin for you, the client.

Even where the home-buyer has a really good, strong relationship with their own bank, bond originators allow for room to shop around for the best deals and to look around at all the other banks simultaneously, getting you the best deal there is.

Every now and again some banks seem to get into a tiff with the originating groups and then for a while no longer allow bond originators to act on their behalf, therefore it is advisable to first ask the originator who they represent and the good ones will make a plan regardless.

Common Debt Pitfalls - get a home loan!

Here is a list of the most common debt pitfalls that South Africans tend to make – avoid these and turn your

credit record around, and before you know it you will be able to approach a home loans advisor to assist in applying for that bond to buy your dream home.  Thank you Wizard Midrand for this article.

Here’s a list of the eight most common financial errors made by South Africans which you should avoid at all costs:

·         Consumers automatically take for granted that interest rates will not go up when they buy a property – this is when they make the mistake by buying a property above their means.

·         Males in South Africa often go to micro lenders to finance their “lobola” which means that traditional weddings often start off on a bad financial note.

·         Having a home repossessed is perhaps one of the most debilitating things that can happen to anyone, and often people are too afraid of what the Jones’s will say; this leads to many home owners dragging their feet to move to a smaller more modest abode.

·         The home that is affordable is usually replaced by a rental option that is just as upscale and as expensive – all this to save face!

·         Using a balloon payment option to finance an expensive car is insanity, but it is done more often than not. The sad reality is that many of these individuals driving around with their expensive “balloon financed” vehicles cannot even afford to replace their tyres; these cars are then traded in at a loss and in the end the car owner loses a substantial sum of money.

·         Money is a taboo topic in many relationships which is only discussed once funds have run dry - it is a fact that many marriages break down to a lack of communication, especially when it comes to money.

·         If you owe creditors money, random debt payment is not the way to go forward – rather put together a solid repayment plan and stick to it at all costs.

·         The creditor who shouts the loudest usually gets paid first – remember to stick to your plan to ensure you become debt free in the near future. And for heavens sake get a free credit report.

Don’t guess what you owe in total – work out a plan, stick to it and work out what you owe your creditors in total. This way forward will ensure that your credit record is corrected over time, making you bond ready when applying for home loans.