Episode 14: How to apply for a home loan.

Episode 14: How to apply for a home loan.

Private Property South Africa
Private Property Reporter

Applying for a home loan. A financial expert from Nedbank goes through the home loan application process in detail.

Presenter: We're talking of buying a house, which is, of course, a very big investment. But it's also a place to raise a family, to create memories, or just kick back and relax. Now, as a South African home loan provider, Nedbank will help you with the home loan process, and of course, secure a bond at a competitive interest rate.

Buying your home usually means getting a home loan. Today, we have our financial expert, Lephoi, from Nedbank Home Loans, to take us through the process in detail, and of doing the home loan application.

Now, Lephoi, when it comes to thinking of a home loan, it's overwhelming, where does one start?

Lephoi Mokgatle: So, Zoe, I always think start as far as where would you like to live. Once you understand where you want to live, then it becomes easier for you to determine whether you can afford it or not. Apart from affordability, I would also suggest that viewers would look at their credit profile with the bureau. So Nedbank has an instant bond indicator that does both an affordability, and a credit check, online, and it gives you a real-time response as far as how much you would qualify for. I think that's the best starting point.

I think, yeah, once you know how much you qualify is then when you can start looking at the different types of homes you want. But in order to apply for your home loan, what are some of the various steps one needs to take?

Lephoi Mokgatle: Once you've found that perfect home and you've signed the offer to purchase with the seller, then all you need to do is to go online and fill in the online application form with your personal details, as well as the property that you're buying. And then it also allows you to upload certain documents. So, specifically, things like your payslip, or your salary advice, the offer to purchase, as well as, sometimes, any bank statements that you might require.

And is there any pitfalls we need to look out for when applying for a home loan?

Lephoi Mokgatle: If you have done the appropriate research, so you've done your credit profile check, you've checked your affordability, you've drawn up your expenses every month, then you can avoid some of the pitfalls around not being able to manage that home loan installment quite well. After moving into the home, some of the things that might trip you up if you aren't prepared are things like the additional costs associated with living in your own home. Things like rates and taxes every month or maintenance of a home that, sometimes, when you're renting doesn't really come into play. Those are some of the things that viewers need to be mindful of, and budget accordingly for.

How important is it to have a deposit when you go and apply for a home loan?

Lephoi Mokgatle: I'm so glad you asked, Zoe. I think it's quite important because it also shows your willingness as a buyer to the bank that you are part of this transaction with them. So saving for a deposit is quite important. I would consider looking at saving every month before you actually look for your dream home. So that when it comes time to applying for your bond the bank can see that you have gone the extra mile to actually save for that home.

Thank you so much for that great advice. And you can also go and ask your bank or home loan sales consultant to assist when trying to get your home loan so that they can help you through the entire process and make life a little easier. Now visit www.privateproperty.co.za for more details and helpful resources.

Whether it's your first apartment in the city, a trendy suburban townhouse, or that dream family home on a golf estate, there's a home for everyone on Private Property.

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