Ways to Increase Chances of Having Home Loans Approved

October 8 - One of the problems facing self employed South Africans is that the majority have their applications for home loans declined.

According to recent statistics, 57.9% of these applicants got a negative answer to their request for home financing - up by 2.4% in 2008/2009.

But while these statistics are quite harsh, self employed South Africans should not despair.

"There is not doubt that it is harder for self employed applicants to obtain financing for their bond but there are a number of ways to improve the likelihood of gaining approval, one of which is applying through a bond originator," said the Chief Executive Officer of ooba, Saul Geffen.

One of the best ways to improve these chances is to apply to a number of banks and lending institutions.

According to Geffen, there was a 32% difference between the banks with the lowest and highest decline rates last year.

"Credit and risk profiling of applications are specific to each bank," explained Geffen.

"It is thus important that applicants are not disheartened by the first decline decision they receive from a lender, and they persevere with other banks."

Self employed applicants are usually perceived as being in the highest risk category as it is difficult to predict their future income.

This has been made worse in our current financial times, where the recession has taken its toll on so many small businesses.

The bottom line is to persevere by using the services of bond originators and applying to different banks.

10/8/2010 9:16:46 AM