For first time buyers, we realize that assumptions regarding the home loan application and approval is stressful. We unpacked some of the top home-buying myths you’ll encounter on your journey.
Myth 1: I can apply for a home loan while I am under debt review.
The banks consider this as a high risk and you would need to have this removed from your profile before applying for a bond.
Myth 2: I can immediately apply for finance again after being denied a home loan.
You will need to wait at least 3-6 months to build up your credit score and make no new debt in this period before reapplying.
Myth 3: I can apply for a home loan without doing a credit check.
However, an affordability and credit check is highly recommended before purchasing property. So that you are able to have an idea of how much you can afford towards your home loan.
Myth 4: I can apply for a bond on my own while married in community of property
Both applicants will need to be part of the home loan application as this will be picked up by the attorneys before registration of the property. However, should one of the applicants be unemployed, we won’t need to use any income. They would simply just have their name on the title deed.
Myth 5: You have to use your bank for a home loan.
This is a frequently asked question. You do not have to only apply to your own bank for home finance. At MHG Home Loans, we apply on your behalf to all South Africans’ major banks, including SA Home Loans. We will fight the best interest rates for you, but you still get the last say on who you want to get finance from. If you choose to except another bank’s offer, you do not have to change banks.
Be sure to get in touch with our Home Loans team here if you have any questions.
Apply for your home loan by downloading your application form here or get a free credit check done here.