When an estate agent has to “sell” a property three or four times in order to find a buyer who can qualify for a bond, it is not just a waste of time for that agent but stressful for the property seller - and disappointing and even embarrassing for the prospective buyers who do not qualify.
However, there is a solution, says Carl Coetzee, CEO of SA’s foremost home loan originator BetterBond*, which is for all prospective buyers to obtain bond pre-qualification before they even start looking for properties to purchase – and for agents to encourage them to do so before they introduce them to any of the homes they have listed for sale.
The purpose of pre-qualification is to determine how much a buyer is eligible to borrow – and thus the size of home loan for which they are likely to be approved. “A pre-qualification is not a “guarantee” that a loan will be approved but it does offer many benefits, including the fact that it helps buyers narrow their home search to properties that they know they can afford,” he says.
“This means that they will be able to spend more time thinking carefully about the pros and cons of the properties that they do view to see which matches their requirements most closely. In other words, it gives them more chance of finding their ‘perfect’ home, while knowing that they won't have to scramble at the last minute to find a loan to finance their purchase.
“What is more, pre-qualification serves as a strong indication to home sellers that they are dealing with a serious buyer who has the means to complete the purchase, and this improves the likelihood of offers being accepted without lengthy and stressful negotiations.”