Getting a home loan is not as simple as one would think, which is why first-time buyers looking at property for sale in Alexandra could be scared off of entering the market.
Some people will entrust their estate agent or other financial institutions to handle the process, but this is not always the best move as it can result in you getting less than you had hoped for.
Taking control of the process will potentially allow you to qualify for the amount that you wanted, as there are factors that you can work on to help the process.
It is important to understand how banks will assess your affordability and credit score first. To know what your credit record looks like, you could acquire your credit report. It is your right to get this report for free once per year, and it will give you an understanding of how banks are seeing your debt management. This looks at whether or not you have been paying bill timeously, and also allows you to track whether the right information is being recorded.
Affordability is dictated by how much money you have available after all of your debt is deducted from your earnings. This amount will determine how much you can afford to pay on a home loan monthly, and will also determine how much you qualify for in the end. If you want to increase the amount, you can enter a joint agreement with a spouse or even a family member.
When applying, you will need proof of regular income and if you are self-employed you may need up to six months of financial records as proof of this.
To make sure you are completely prepared, it is not a bad idea to talk to a banker ahead of your property search, and discuss ways that you can make a positive impact on your home loan application.
