File Image: IOL
DURBAN - FNB Agent Surveys for 2017 estimates that average of age of the bonded home buyer is between the ages of 36 and 39.

The age is different for each province. For example, the average age of the bonded buyer is 36,95 in Gauteng while in KwaZulu-Natal the age of a bonded buyer is 39.

Different banks have different requirements for when people want to take out a bond for a house.

We spoke to four big banks in South Africa about their tips for buying a house.

Here are their responses:

Absa

In order to apply for an Absa home loan, the first time home owner needs to meet the following criteria:

1. Your account income and expenses, including the dependability of your income (income and expenditure statement).
2. Information acquired from Credit Risk Management and related services and other appropriate parties. For example employers, other lenders and property owners.
3. How you have handled your previous and existing accounts.
4. Information from you including identity verification and the purpose of the borrowing, which in this case will be buying a house.
5. Credit evaluation techniques like credit scoring.
6.Your age in relation to the loan facility needed
7. Any security or collateral procedures
8. Your statement of assets and liabilities.

No automatic alt text available.
Absa Bank Photo: Facebook

First National Bank

If you are applying for a home loan through First National Bank make sure that you have the following documents with you.

1. Proof of income
2. South African ID or smart card identification document
3. Copy of offer to purchase
4. Proof of current residential address (municipal account, TV licence or Telkom bill)
5. Salary earners: most recent salary slip of bank statement for the last three months, letter from your employer followed by a telephone confirmation to your employer
6. FNB customers do not need a statement.


FNB also provided tips to get your home loan approved:

1. Check the valuation of the property before the home loan is approved. Let the bank conduct their own assessment to ensure that amount being borrowed is not far off from the market value of the property, in case the property has to be re-sold in the future.

FNB lets customers proactively get a property and area report on the FNB App and online through Nav Home and compare this to details provided by the seller or agent before the home loan application.

2. Avoid taking on extra debt - many consumers mistakenly assume that banks only monitor their credit profiles and perform updated affordability checks before the home loan process.

However, this process continues for at least months until the property registration process ends. Therefore taking on extra debt or defaulting against credit providers can result in the bank repricing and in extreme cases declining the loan altogether.

3. Saving up for a deposit - although banks occasionally grant 100% home loans, having a deposit demonstrates your ability to save and increases your chances of getting approval.

4. Get pre-approval- getting pre-approval ahead of the home loan application gives you peace of mind by knowing whether you qualify or not. Your bank will normally ask for you latest three months slip, three months bank statements, ID copy and proof of address for pre-approval.

5. Checking credit score- you are allowed to check your credit profile for free of charge once a year and also buy reports for a fee from the credit bureaus. A clean credit record is essential for getting home loan approval from any financial institution.

No automatic alt text available.
First National Bank Photo: Facebook

Nedbank

Nedbank gave have some tips for first-time buyers.

1. Understand the are where you want to live and research the market activity in that particular area.
2. Know your financial status. Get a credit-free annual report and calculate your monthly expense relative to your income and determine what is left to cater for the monthly bond repayment. Also consider additional monthly costs like rates, taxes, and levies, etc.
3. Use tools that are available to you like Nedbank's Bond Indicator to check how much you qualify for in terms of mortgage?. If you have available savings, consider using these funds as a deposit as the banks are more likely to give a more competitive rate in such instances.
4. Consider all the initial costs such as transfer costs (SARS and attorney), bond initiation fees, attorney registration costs and moving costs to avoid any unforeseen expenses.

No automatic alt text available.
Nedbank Photo: Facebook



- BUSINESS REPORT ONLINE