Buyers guide: Step 4 Home loan know-how

Find out how to apply for a home loan and how to give yourself the best chance of getting your home loan approved.

YOU WILL NEED THESE DOCUMENTS IN ORDER TO GET YOUR HOME LOAN APPLICATION PROCESSED:

If you’re employed:

• your latest payslip;
• copy of your ID;
• if you’re married, a copy of marriage certificate or antenuptial contract;
• copy of the OTP;
• last 3 months’ bank statements;
• If the loan is over R1,5 million, a statement of your personal assets and liabilities.

If you’re self-employed:

• proof of income;
• copy of your ID;
• if you’re married, a copy of marriage certificate or antenuptial contract;
• copy of the OTP;
• last 6 month’s personal bank statements;
• last 6 month’s bank statements for your business;
• copy of registration documents or trust deed;
• statement of personal assets and liabilities.
  
  

THE HOME LOAN APPLICATION PROCESS

Step 1 - Submit your application
Apply for a bond through a bank or bond originator.

Step 2 - Approval in principle
Once your application has been assessed, you will receive an approval in principle, subject to valuation.

Step 3 - Property valuation
The bank valuates the property to determine its true worth.

Step 4 - Loan is approved
Once approved you receive a quotation showing approved home loan amount, interest rate and key terms and conditions.

Step 5 - Bond registration
Once the quote has been accepted and signed by you, the bank will formally grant the loan and instruct the bond attorney to register the bond.

Now that you have your bucks in a row...
you found your new home...
you've made an offer...
and your home loan is approved...

The next step in your First-Time Home Buying Guide is "The legal aspects of ownership":

1. Getting your bucks in a row
2. House hunting - Homing in on your new house
3. Doing the deal
4. Home loan know how
5. The legal aspects
6. Moving tips