There are several preferred misunderstandings from the to buy a property that may be a little off-putting for the first time family customer. The content below unpacks a few of the most useful household-to find myths there are on your own journey to your as a bona fide home owner.

Myth#1: I can just submit an application for home financing out of a lender

Untrue. If you’re banking companies certainly are the traditional go-to’ to have family funds, SA Mortgage brokers try another, specialist home loan supplier that has been doing work when you look at the South Africa due to the fact 1999. We provide versatile lending options, within aggressive rates, and just have assisted over 100 one hundred thousand South Africans using their residential loans.

Myth #2: My personal mortgage application could have been refuted: my hopes for to invest in a home is more than

Untrue. The prevailing concern that to possess a bond app becoming rejected try an enthusiastic applicant’s lowest credit score. Borrowing from the bank team utilize this score to find out an applicant’s credit history. Credit worthiness has to do with their reputation for credit and you will obligations installment and how most of an economic risk your own prospective borrowing from the bank merchant often respect you to definitely be.

The way to raise your chances of having your bond software acknowledged initially will be to access their credit statement before you apply your most credit. Take a look declaration to have problems, declaration one you find, and start focusing on boosting your get. You could mark your credit report out-of the following credit reporting agencies: TransUnion, Experian, XDS and you may Compuscan.

Considering TransUnion, a sub-standard credit score was 486 and you may less than and cannot bode really for having a bond application accepted. A beneficial get was ranging from 680 766, and you can a great rating is on the 767+ bracket. You should circulate your credit rating around outside the 640 draw when you need to boost your odds of qualifying to have a home loan.

Myth #3: I will just have a look at my personal credit file annually

Untrue. Depending on the Federal Borrowing Operate (NCA), youre eligible to one free credit report the 1 year. Afterwards, you’ll be charged a decreased fee having attracting research. That is worthy of purchasing, because it is possible to song any results on rating and you may determine the readiness to apply for another type of family financing.

Misconception #4: Checking my credit history over and over again per year commonly apply to/ all the way down my score

False: Opening the credit file va personel loan is named an effective smooth enquiry’ and you can will not impact on your credit rating. Hard’ enquiries, additionally, are performed by credit business, usually together with your permission, and will decrease your get of the a few facts. This is exactly a primary reason you need to have all your own financial ducks in a row before you apply your a lot more borrowing from the bank thus a prospective monetary financial only need to look at your credit history after, that will limit the influence on their get.

Myth #5: competitive rates of interest are definitely the only topic to target whenever going for a credit seller

Not true. While it is always a good idea to search around for competitive rates of interest, you additionally should pick a home loan provider who’ll give you having continuously excellent services.

As to the reasons? Since the you’ll be when you look at the a relationship with this specific financial having a great long-time and certainly will wish to know they are worried regarding customer service and will easily be called is one difficulties happen.

Be also sure to enquire about any requirements and charge you are able to end up being billed away from prominent and appeal money you don’t want to become caught out by one hidden can cost you placed in the latest small print.

Which is develop cleared up some of the more common misconceptions in the to find property to you. Feel free to contact SA Lenders any kind of time stage to possess a whole lot more suggestions for making an application for a home loan.