Do you want to own your first house? How about upgrade or move to a bigger one? Nedbank understands these needs and realizes the importance of a home loan. After all, it is one of the biggest investments you will ever make.
Buyers want flexibility and Nedbank can provide it. Nedbank is known for their flexible loan offers and personal customer service.
Nedbank home loans can be used to buy either an existing home or vacant land so you can build your dream home. Home loans for 100 percent of the purchase price are available as well, depending on the buyer?s creditworthiness and the property?s value. Nedbank will finance between 70 percent and 100 percent of a vacant land purchase, again depending on the buyer?s creditworthiness and the value of the property. Home loans are also available to those who want to borrow money to make major improvements to their existing home.
Nedbank offers both fixed and variable interest rate home loans, as well as Nedbank Accelerated Payments, which enable the buyer to pay off their home loan faster than what is agreed upon in the home loan contract. Talk about flexibility!
In order to qualify for a Nedbank home loan, you must be a South African resident with a good credit record. There are minimum monthly income requirements as well. Before you apply for a home loan, check your credit report. If there are any errors, contact the credit bureaus to have them removed.
First check for errors and then check for high credit balances. High credit balances lower your score, and increase the interest rate on a home loan. Also, set aside a few months worth of loan repayments, which is known as reserves. Banks demand reserves, so this is not an option.
Buying a home means paperwork, too. You will need proof of identity, income verification, bank statements and the offer to purchase agreement. Make sure you have all the necessary documentation gathered before you apply for a home loan in order to speed up the process and not delay. A delay could cause you to lose out on your home purchase.
Once you get a home loan, you will have to make monthly installment payments on the loan. The monthly payment consists of capital, interest, home insurance premiums, an administrative fee and possibly a life insurance premium.
When you are ready to purchase a home, make sure you see a qualified lender first, as they can review your situation, answer any questions, and develop a home loan proposal to meet your specific needs.
Tom Martens is the content coordinator for South Arica?s leading Homeloans portal which amongst others offers Bond origination services for all major banks.