“By using the prequalification service of a bond originator, prospective buyers greatly increase their chances of obtaining successful bond approval with the most affordable terms once they have purchased a property,” says Geldenhuys.
“The latter can be the most daunting, especially for buyers who are unsure of what they can afford and what steps they need to take to determine their options,” says Misty Kesting, an estate agent at Knight Frank Residential South Africa specialising in the Claremont, Rondebosch, Rosebank and Newlands areas, “This is why buyers should be prequalified before they begin house hunting.”
Bond originators offer a free prequalification service to all prospective home buyers. This involves assisting buyers to access their credit report and credit standing, calculating their affordability, compiling the relevant paperwork and providing them with a prequalified loan certificate.
“As a result, buyers not only know in advance what they can afford, but also have a realistic indication of the likelihood of a bond application being approved for a specified amount, says Kesting.
“Being prequalified signals to the estate agent and seller that you are a serious customer,” says Kay Geldenhuys, Manager of Property Finance Processing at ooba. “It also reduces the time spent on securing home loan finance after an offer on a property is made, as all the paperwork has already been prepared and submitted for the home loan process.”
Unlike bond originators, Geldenhuys says most banks do not actively market their home loan prequalification services to prospective buyers.
She says it is imperative that the buyer chooses an originator with a proven track record of securing outstanding bond approval rates, as well as one with the necessary expertise and experience to guide a home buyer through the important process of prequalification. “By using the prequalification service of a bond originator, prospective buyers greatly increase their chances of obtaining successful bond approval with the most affordable terms once they have purchased a property,” says Geldenhuys.
“Considering these benefits, being prequalified is a perfect solution to help budding homeowners make their home buying dreams a reality.”