Steps for securing mortgage home loans

There are certain steps to be taken for securing excellent mortgage home loans. The process however, starts long before you actually apply for financing. Your most important step is to get in contact with CKM Homeloans who are able to advice, guide and eventually help secure the best mortgage home loans for property buyers.

Analyze your needs

When you know what you want and need, you will be able to make a better buy, which makes the process of applying for one of the many mortgage home loans easier. Assess your housing needs such as size, location, type of housing, style, security, value of the area, reason for purchasing the property etc.

Assess your financial obligation

Before you even contact an estate agent or look for a house, townhouse, stand or flat, you need to work out your finances. Create an income and expense balance sheet of your current situation and then assess how much is left for repayment of mortgage home loans. You also need to consider municipal fees, interest rates, water and electricity, insurance, cost of maintenance etc. when you draw up your new budget. You can use the financial calculator and other tools available at the CKM Homeloans website for this.

Put away some money

People get better interest rates and terms on mortgage home loans when they put down a deposit of 10-20% towards the down payment of their bond. If you are able to do this, you will save a lot of money on the long run and increase your chances for securing a suitable bond. If you qualify for a 100% loan, you won’t have to put down the deposit, but interest rates may be higher.

Take all costs into consideration

Speak to your CKM Homeloans consultant about additional costs such as valuation fees, legal costs and transfer duties associated with mortgage home loans to make sure you have the funds available.

Look for a suitable property

Speak to one of the consultants at CKM Homeloans and use tools at our website to calculate what amount you will be able to qualify for. Now you are ready to do some property shopping. The consultant from CKM Homeloans will be able to assist you in selecting a suitable bond and will negotiate interest rates and payment terms with the different banks.

Assessment of the property

When you look for a suitable property keep the above costs in mind as well as your original requirements and desires for the property. Ask as many questions as you can about the property. Also review the age, location, security and size of the property as this will have an influence on its value.

Sign an Offer to Purchase Agreement

Once you have found the correct property, you need to sign and submit the Offer to Purchase Agreement. Your CKM Homeloans consultant will submit the document, together with your financial and bank statements, copy of your identification document, the pre-approval certificate (if you have one), FICA documents, proof of residency, your income and expenditure statements, copies of security or collateral, and guarantees to the banks.

Application forms

Once the mortgage home loans division receive the application, your credit history, current financial stance and the property value will be assessed. The bank can grant an answer of preliminary approval subject to conditions to be met on account of your financial position within 2 to 10 days. The property however still needs to be valued at the requested amount. You will receive a formal letter of approval once the bond is approved. The lawyer will commence with the registration process as soon as the bank has provided a guarantee for the said amount. Once registration is completed, the seller is paid and you become the legal owner of the property.

Mortgage home loans considerations

Try to move in when registration takes place as this will save you occupational costs. The CKM Homeloans consultant will keep you up to date on the progress of your bond and home registration. To keep your interest low, you should always pay your bond installments on time. If you find it difficult to keep up with payments, request to extend the bond period to 20 years as this will lower the interest rates. Also try to pay additional amounts into the bond as this will also lower the amount eventually paid on interest. As an alternative put money into a 32 day call account for emergencies in case you lose your job or have difficulty to make payments.

Following the above guidelines and making use of CKM Homeloans will help to take the hassle out of the procurement of mortgage home loans.