When it comes to purchasing a property, everyone is on the lookout for the best possible deal; after all, you do not want to think that the home loan that you did get was not the best one for you. However, at the same time, trying to be too ambitious can result in you being rejected for a home loan, so it is somewhat of a balancing act. Most people want to get moved into a property as soon as possible, which is why it is important that you get the application process right the very first time round.
In order to avoid this, it is helpful to know exactly what things can stop you from getting a home loan. Whilst the below list is not exhaustive, it is pretty extensive.
- Not being on the electoral roll (for the purpose of proving your address)
- Making to many applications for credit
- Not having enough disposable income
- Having a poor credit rating
- Not having a consistent form of income
- Incorrectly filling out the application
- Not applying for the correct home loan (you do not fit the criteria)
If you are self employed you may find it more difficult to be accepted for a home loan and that is even if you meet all of the necessary criteria. This is because it is more difficult to prove that your income is consistent and guaranteed. However, there are some specialist lenders out there that do specifically cater for the self employed so do not worry if this describes your situation.
Increasing Your Chances Of Getting A Home Loan
The best way of guaranteeing that you will get a home loan, such as the ones provided by absa home loans, is by employing a mortgage adviser to provide you with assistance throughout the entire process. This is because the act of applying for a home loan can get very complicated and quite confusing for the average person.
Having a mortgage adviser on your side, helping you with the application process, greatly increases the chances of your application for a home loan being accepted. With the help of a mortgage adviser, they will help you to find the best deal possible, meaning your monthly repayments are as low as possible.
Do what you can to put down as large of a deposit as is physically possible for you. This means that the size of the home loan that you require is reduced, thus making your application more likely to be accepted, as the risk for the lender is reduced.
As long as six months prior to applying for a home loan, you should avoid not only taking out, but even applying for things like phone contracts, overdrafts, personal loans, credit cards etc. as these things will show up on the credit report that is run. This sends a message to the lender that you are attempting to take on more debt, and so may struggle to pay back the home loan that you are applying for with them.