What You Need To Know About Home Loans

What You Need To Know About Home Loans



What you​ need to​ know about home loans
I’m in​ my 20’s,​ working hard and my boyfriend and I​ am thinking of​ buying a​ house .​
Being one of​ those creative types,​ I​ have limited knowledge of​ what exactly is​ involved in​ buying a​ house .​
Firstly,​ I​ want to​ know,​ what I​ have to​ do to​ qualify for a​ home loan / bond .​
Secondly,​ I​ want to​ know how big a​ bond I​ can get .​
Thirdly,​ I​ want to​ know whether my boyfriend and I​ can buy a​ house together,​ thus apply for a​ bond together.
I set out to​ do some research before going out to​ look for our dream house .​
Starting at​ my number one question,​ What do I​ have to​ do to​ qualify for a​ home loan / bond? I​ started searching the​ Internet for more information .​
I discovered that there are certain criteria that one has to​ meet in​ order to​ qualify for a​ bond .​
Firstly,​ I​ discovered that you​ have to​ be at​ least 21 years of​ age before you​ will even be considered for a​ home loan .​
You have to​ earn a​ minimum salary of​ between R8000 to​ R10 000- that's as​ a​ single income,​ or​ as​ a​ joint income of​ you​ and your partner .​
You must take into consideration that your credit history will be checked- any negatives on​ you​ credit history will count against you​ when you​ apply for a​ home loan / bond! Further more,​ you​ need to​ have a​ permanent job,​ where you​ have worked for at​ least 6 months,​ or​ in​ the​ case where you​ are self-employed you​ need to​ have been at​ it​ for a​ minimum of​ two years.
The above mentioned are the​ basic requirements in​ order to​ qualify for a​ home loan .​
Secondly,​ I​ was interested to​ know how big a​ home loan I​ could get .​
As soon as​ I​ knew how much,​ I​ could start searching for a​ house .​
According to​ numerous reputable websites online,​ it​ seems that the​ size bond I​ could qualify for is​ roundabout 25 -30% of​ my salary (or you​ and your partners joint salary) .​
The bigger your salary,​ the​ bigger the​ bond you​ will qualify for and the​ bigger house,​ or​ rather more pricy house you​ can buy.
Thirdly,​ I​ was interested in​ finding out whether or​ not my boyfriend and I​ could apply for a​ home loan together .​
This means that even though we are not married,​ I​ wanted to​ know if​ we could still buy a​ house together and how this will influence us in​ the​ long run .​
I​ wanted to​ know whether partner or​ couple means married or​ not.
According to​ my bank manager,​ my boyfriend and I​ can apply for a​ bond together,​ but there are certain things we must take into consideration when we do .​
It is​ best to​ register the​ house in​ both our names just incase our relationship ends somewhere in​ the​ future .​
According to​ Bonny Feldman (First National Bank's Media Liaison),​ 'common law' relationships are not recognised by South African law .​
This means that if​ a​ relationship ends and the​ house/property is​ only registered in​ one of​ our names,​ the​ other will lose out .​
She further states that because you're not seen as​ husband and wife,​ the​ one in​ whose name the​ property is​ registered in​ is​ entitled to​ the​ full property,​ even if​ the​ other partner contributed significant amounts to​ settle the​ bond,​ for instance .​
The unlucky partner could try to​ recover some of​ this money,​ but that would involve a​ legal case,​ and you'd have to​ have records of​ everything spent over the​ years - and that's not very practical! .​
Taking the​ above into consideration,​ I've realised that buying a​ house together is​ not a​ small step in​ ones relationship .​
There are a​ lot of​ things to​ consider and you​ will have to​ work with knowledgeable people who will help you​ make sure you​ don’t step into any flames later on.
While doing my investigating I​ came across quite a​ few websites,​ which apply for your home loan or​ bond- making everything easier in​ the​ sense that they do all the​ hard work for you​ .​
They call themselves independent bond origination companies and all they need from you​ are certain documents .​
Their specialised home loan consultants will contact you​ and help you​ through the​ process step by step .​
I think this sounds like a​ definite option to​ consider as​ we are first time buyers and still need some form of​ guidance .​
Who knows,​ this home loan / bond thing might still be easier than I​ expected!




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