Getting a pre approved loan is very desirable as it helps in speeding up the entire home loan application process. Such pre approved loan appliers are the ones who are given more preference especially if they can prove that they can buy the home which they are intending to buy. We would, in this article, look at some of the processes that are involved in getting a pre approved loan in South Africa.
Get help from mortgage originators
Getting help or working with mortgage originators is the best way to start off as pre approved home loan. These people would help you get the best home lender available in the market for pre approved home loan. They would charge some nominal fees for their services. You can get in touch with these mortgage originators either in person or through filling out an application form online as most of the mortgage originators have websites of their own.
Get your documents ready
There are lots of documents that one has to keep ready if they want to make this pre approved home loan process simple and finished within a short span of time. Some of the documents that would be required are three to six months pay slips or bank statements, an income and expenditure report, proof of residence, etc. The bank statements are required to check the earning capacity of the applicant. All these information would come in very useful to assess the financial and social status of the applicant.
Credit history check
Credit history check is one of the most important aspects for getting a home loan. This is mainly because it gives the lender a chance to know how many loans have you applied for in the past and how many have you been able to settle successfully or have defaulted on. All these information will be there in your credit report and based on all these information, you would have a credit score. That credit score is what determines the chances of you getting the home loan in an easier way or would you have to do some struggling. If you have a higher credit score, then it is good for you and you have very good chances of getting the home loan at a lower interest rate. But if you have a poor or low credit score, then you might find it difficult to come across a lender who would give you a home loan. And even if you get the loan, the interest rates and the other things would be pretty much severe and harsh.
Pre approval is an indicator and not a deciding factor
If you get pre approved for a home loan, then it means that you are very likely to be considered for a home loan by lot of potential lenders in the future. It does not by any means mean that you are pretty much certain to get the home loan and that you would not be required to worry about other things relating to the home loan application.