Ooba Advises on Home Loan Applications

December 7 - One of South Africa's leading mortgage originators, Ooba, believes that now is the right time to apply for a bond from the country's banks.

The Property Finance Manager at ooba, Kay Geldenhuys said: "With the relaxation of lending policies there should be a much improved chance of being approved for a loan on favourable terms."

Geldenhuys said that banks are now offering 100% home homes once more and the low interest rates only make home loan application more attractive than ever before.

There are a number of steps that potential home owners can take to improve their chances of having their home loan application approved.

The first is to check whether their property is affordable. Experts should be able to assist interested home buyers with exactly what they can afford. "Monthly repayment affordability is generally calculated at 25 to 30 percent of joint gross income, but other criteria, including existing debt commitments, may affect the size of the loan that the bank will grant," said Geldenhuys.

Other costs to take into account include what is known in the industry as hidden costs such as bond registration fees.

The next step is get a company such as ooba to provide a free pre-qualification assessment to ensure that they stand a good chance of having the banks approve the home loan application.

Potential home buyers should have their credit records checked to ensure that their application will not be turned down due to past issues.

Once the application is put in, buyers should make sure that all the correct information has been submitted and that they have applied with the bank that offers the best interest rate.

Finally, ooba suggests that buyers consider using the services of a mortgage originator who will do the hard work and negotiations for them to achieve the best long term deal.

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12/7/2009 11:34:35 AM