Buying a property and need a home loan? 8 Reasons why a home loan pre-qualification makes sense

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Buying a property is most likely the largest investment one will ever make.

First get a formal indication of the home loan you can qualify for. Avoid the stressful time waiting for the final home loan approval that is only submitted after you have signed for your dream home.

The best news is that a free web based service is available and can also be done paperless & quick.

Here are 8 reasons why a home loan pre-qualification makes sense.

  • Impress the seller
    • If you have done your homework in advance, a property seller is more likely to sell his property to a buyer who has pre-arranged his finances to secure the deal.
  • Be on par with a cash buyer
    • Face the facts, “cash is king” and a pre-qualification gives the seller comfort close to a cash buyer when multiple offers are submitted.
  • Close the deal
    • You know your purchase power and can negotiate more assertive. If your offer is subject to still “finding out how much you can qualify for”, the seller may select a more secure offer.
  • Improve the speed
    • Do all the paperwork in advance and improve the speed of your final home loan application. The shorter your final home loan application period, the stronger your negotiation power.
  • Save thousands
    • Know your home loan prequalification amount in advance, based on your credit score and affordability. Negotiate a better interest rate with a lender, saving you thousands of Rands, over the 20-year repayment period of your home loan.
  • Avoid losing your dream home
    • A home loan prequalification provides comfort to seller when selecting which offer to select, if faced with a few offers on the table.
  • Avoid disappointment
    • If you know your home loan affordability, you improve your chances for the final home loan approval. Statistically more than 75 % of prequalified home loans are finally approved by the lenders, compared to less that 50 % for non-prequalified buyers.
  • Free & online service
    • Many lenders and mortgage originators provide a web service for an online prequalification check. Most often these services are based on inaccurate information provided. An online and paperless service is available through the My Bond Fitness process
    • The My Bond Fitness application was voted “App of the Week” in the Business ediction of Media 24 on 13 May 2017

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

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