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5 Tips for getting bond approval 1. Get prequalified One way to ensure that the loan you apply for will be granted is to get a prequalification. ooba Home Loans will, at no cost, prequalify you for a certain bond amount, or you can use our free, online prequalification tool, the Bond Indicator. This will provide you with a solid estimate of what you can afford, so you can apply for a bond on a home within your price range. The bank is obviously more like to approve your home loan if you prove you can afford the monthly repayments. You can also use our Bond Calculator to determine the home loan you qualify for and how much you can expect to pay monthly on your bond repayments. 2. Check your credit record Your credit record is the most critical factor when attempting to secure home loan approval. Prequalifying with ooba Home Loans, or using our Bond Indicator, allows you to find out your credit record. You need a credit score of at least 600 for the bank to even consider your home loan application, while anything above 650 is considered a decent credit score. There are various measures you can take to improve your credit record, such as paying off outstanding debts, paying bills on time, and cancelling out-of-date credit records. ooba Home Loans can advise you on this process. 3. Submit the correct information To assist the bank in determining its risk, you will be required to provide personal information such as bank statements, salary slips, a statement of assets and liabilities, a statement of your monthly expenses and information on your employment and credit history, including whether you have ever been insolvent. At ooba Home Loans, we can ensure you have all the correct paperwork to avoid unnecessary delays. We submit the documentation and liaise with the banks on your behalf. 4. Get the best interest rate The lower the bank’s risk in lending funds to a particular borrower, the better the rate it will offer that individual. In calculating its risk, it will consider factors such as the amount of equity you are willing to invest into the property, i.e. your deposit; the size of the loan; and the repayment-to-income ratio (the ratio between the bond repayment and your income). The size of the bond you apply for, your credit history and the investment value of the property you intend to buy also affect the rate you will be offered. Shop around and negotiate with various banks to ensure you get the best package. A home loan comparison service, such as ooba Home Loans, can do this for you by submitting your home loan application to multiple banks. 5. Use a home loan comparison service As mentioned, consumers looking for the best deal on home loans should make use of a home loan comparison service that specialises in shopping around between banks and negotiating the best deal for the customer for free. Ooba https://lnkd.in/diryUg_h

How to improve your credit (+ qualify for a home loan) How to improve your credit score Check credit reports for errors. Pay outstanding debts. Reduce credit ratio to below 30%. Settle and close accounts. Limit requests for new credit. Encourage your spouse to take the same measures. 1. Check credit reports for errors One measure you can take immediately is to check your credit report for errors and inconsistencies. Credit bureaus calculate your credit record using your payment and account history, but the report could be subject to mistakes. Contest some of the black marks on your credit record, such as late payments that weren’t late, and you may be able to earn yourself a few extra points. 2. Pay off outstanding debts Outstanding debts have a significant impact on your credit record, so pay off as much and as many as you can. Start with credit card accounts as they usually have the highest interest rates. You could take a loan from the bank to pay off your debts. This way, you consolidate all your debts into one. 3. Reduce your credit ratio to below 30% The gap between the amount you owe and the limit to your credit affects your credit record. This is known as your credit utilization ratio. For example, if your available credit is R20 000 and you owe R10 000, your credit utilization ratio is 50%. A good rule of thumb is to keep your credit utilization ratio at 30% or lower. So in the above example, paying down what you owe in order to reduce the 50% rate to 30% will boost your credit score. Paying off credit cards in full will keep your credit ratio from spiralling out of control. You could request a credit limit increase in order to improve your utilisation ratio. 4. Settle and close accounts Closing accounts after you’ve settled them will reduce the number of credit accounts attached to your name. Having too many accounts open will negatively impact your credit score, as it signifies a high amount of borrowing. 5. Limit requests for new credit Naturally, you should show restraint when using available credit while you take the necessary steps to improve your credit record. Avoid taking on new debt and opening new accounts. Hard inquiries on your credit can affect your credit score. Hard inquiries include applications for a credit card, home loan or car loan. This is opposed to soft inquiries which include checking your own credit record or having a financial institution check it. 6. Encourage your spouse to take the same measures The credit record of your spouse will also be taken into account if you apply for a joint home loan, or are married in a community of property. So if your spouse takes the same steps listed above to improve their own credit record, you improve your chances of home loan approval. Ooba https://lnkd.in/dNZ_iyNU

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#PublicRelations is one of the most credible ways for #mortgage firms to stand out as industry leaders, as I wrote in Scotsman Guide: https://lnkd.in/eWdafpDG I hope you find the article helpful.

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