Give your buyers the good news

stk119199rkeYes it’s tough to obtain a home loan these days, but it’s also far from impossible, and the process is nothing to be feared, even if you don’t have a perfect credit record or a long history of employment by one company.

That’s the message that agents and their mortgage originators need to get across now to prospective homebuyers – along with the fact that the banks are in the lending business and currently building up their home loan “books” again, so don’t really want to turn people down if they can help it.

Indeed, we at BetterBond believe that many more South Africans could own a home if they had access to more accurate information about the home loan qualification process and the range of home loan products available – and that it is up to the real estate industry to ensure that they get it.

For example prospective buyers don’t need a perfect credit history to get a home loan. Most people have had some money trouble at one time or another, and as long as they have dealt with it responsibly and established a new pattern of managing their credit wisely, keeping credit card balances low and paying their bills on time, their credit score will rise – especially if they have a deposit and a steady job.

On the other hand, while job stability is important, you don’t need five-year track record with the same company to get a home loan, especially if you have a deposit and a good credit score. There are even mortgage products for self-employed people who have difficulty documenting their income – especially if their credit is good.

There are also a number of innovative mortgage products now available for first-time buyers who don’t have extensive credit records, or who need to borrow 100% of the purchase price.

In short, the lowest interest rates in more than 30 years mean that now is an excellent time for prospective buyers to get a foothold in the market and start laying the foundations of their future wealth, and we should not let them lose the opportunity for want of a little information and encouragement.

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About BetterLife Home Loans

Since 2003 BetterLife Home Loans has been SA’s No.1 Bond Originator, handling the entire home loan application process on your behalf – free of charge! Our aim is still to source the best interest rate for you by submitting your home loan application to all the major banks. There is no easier way to apply for a Bond or Home Loan in South Africa!

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