If you are buying a new home this step-by-step guide will help you to qualify for a new home loan in no time. Follow this guide accurately.
The first step is to find out what you are able to afford. You can calculate this just by doing some basic maths. To get a rough estimate, your monthly home loan instalment must not exceed 30% of your monthly gross income.
Head over to our Bond Affordability Calculator to calculate the maximum home loan amount you can afford relative to your monthly income.
Our “Bond Affordability Calculator” will show you the following:
- Nett Surplus Income (the amount you have after salary and expense deductions)
- Expected Monthly Instalment – the estimated monthly repayment amount of your home loan
- Qualified Amount – the estimated maximum amount you might get approved for
Please Note: Although every effort has been made to ensure the accuracy of our calculators, Homeside Home Loans and its subsidiaries accept no liability in respect of any errors contained herein. Under no circumstances will Homeside Home Loans and its subsidiaries be liable for any loss or damages whatsoever arising from the use of this calculator.
There are a few ways you can find properties that will suit your budget.
Visit the estate agent offices in the area where you wish to buy a property. Most, if not all, estate agents display the properties for sale on a board on the walls of their building.
Please note that although estate agents list the same properties, some estate agents might have a “sole mandate” property. This means that the seller has given the estate agent the sole right to sell his/her property. These properties will not be listed at other estate agents.
Speak to the estate agent so that they can get a feel and understand what type of property you are looking for.
Newspaper & Advertising Mediums
Estate Agents make us of local publications such as local newspapers and advertisement booklets to advertise properties they have for sale. This will also help you to understand what the price of a property is in the area you wish to buy.
This will also narrow down a few properties you might be interested in. Arranging meetings with the estate agents to view these specific properties will save both you and the estate agent a lot of time.
Click away online
The information age makes house hunting easier than ever. Estate agents also list the properties they have for sale, even sole mandates, on sites such as Property24.com. You will not only see the front of the house on a photo, but also the inside and the backyard of the property.
A wall in the wrong place or the size of the backyard might just put you off from a certain property that might have otherwise looked perfect from the road. This makes house hunting even more precise and the list of possible interested properties shorter.
Take a Sunday drive
Not necessarily the most economical way to search for the perfect property, taking a Sunday cruise with your family through a suburb you wish to purchase a property has its share or rewards. This way you will get a feel of the suburb and possible future neighbours. You will also be able to get a good personal view of the properties you might be interested in.
We have made applying for a home loan online as easy as possible. Just a few questions will allow us to better understand your home loan application and provides you with all the relevant information.
Homeside Home Loans offers various types of home loans options.
New Home Loan
A new home loan allows you to apply for a complete home loan. This option is ideal for individuals that know exactly what they can afford and has found the perfect property to buy.
With this type of home loan, Homeside will process your loan from start to finish provided that you have submitted all required documents with your application form.
Pre-approved home loans is perfect for buyers that don’t exactly know what they can afford and/or haven’t found the perfect property to buy.
When you apply for a pre-approved home loan through Homeside Home Loans, we process your home loan application, provided that you have send the necessary relevant documents and completed application form. You will receive a pre-approved home loan certificate that will contain the maximum amount you might get qualified for. As you found the perfect property you can submit this pre-approved home loan certificate with your offer to purchase to the seller as an almost guarantee that the sale may not fall through the floor.
Homeside Home Loans will put your home loan application on ice until you have found the right property and want to continue and finalise your home loan application.
Further/Additional Home Loan
A further or additional home loan is ideal for buyer’s that already owns a home and wish to gain access to an increased equity on their home to allow extra funds to do renovations or extend their current home.
Further home loans can only be granted to home owners with a positive equity. This means that the value of the property exceeds the amount owed towards the home loan and may not be less than R150 000.
As an example, your original home loan amount was R180 000 and the original value of the property was R200 000. As the value of the property increases over time, the new value of the property is R350 000. Taking the outstanding balance of R100 000 into account, a home owner can apply for a maximum further loan of R230 000.
Please Note: A further loan basically allows you to take out a second home loan and therefore there will be attorney and bond registration costs associated with a further loan.
A building loan is ideal for property owners that wish to build a house on the already owned property or wish to carry out renovations on an existing property. With a building loan, a retention is put on the home loan amount and paid to the borrower in stages or as certain stages of the constructions/improvements is completed. After construction or renovations, the building loan is then reverted to a normal home loan.
This will allow us to successfully apply for a home loan with the various banks on your behalf.
Please Note: Failing to send us ALL relevant documents will result in a delay in your home loan application as the bank requires these documents to start processing your home loan application. It is important that you send all the necessary documents at the same time to reduce wasting time and effort on both your and Homeside Home Loan’s part.
Don’t know what documents are required?
Homeside Home Loans has made your home loan application very easy. We have a complete list of required home loan documents that you can view.
Processing of your application can take from 2 days up to 2 weeks. It all depends if the banks don’t require any additional documents from you as an applicant.
During this process, Homeside Home Loans will continuously follow up with the banks on the process of your application. As soon as we receive feedback from the banks, we will try to negotiate and improve on your initial home loan offer by the banks.
Homeside Home Loans guarantees to keep you updated every step of the way and be transparent all the way from start to finish.
This important legal document contains all relevant details regarding your home loan application. These details include information such as the costs, interest rate, indicative repayment amount and other useful information.
As soon as you have reviewed this document, you will need to send the signed document to Homeside Home Loans to be submitted to the bank of choice.
This will initiate the Bond Registration process and the seller is notified as such.
This is the first step in finalising your home loan application.
As soon as these documents are signed, the bond will then be registered at the Deeds Office.
This process normally takes 24 weeks in total:
- 12 weeks to enter the rolls at the deeds office, and
- 12 weeks to register your bond
When the bond transfer has been finalised, you can take possession of your new property.
Homeside Home Loans will follow up with the Transfer Attorneys on a regular basis until your bond has been transferred into your name. We will keep you up to date during the process on any form of reply from the Transfer Attorneys. This way you will always be kept in the loop.