Dealing with home mortgage lenders

South Africa has over the past few years seen a sharp increase in home mortgage lenders and bond originators. Home mortgage lenders are the financial institutions that lend you the necessary funds to purchase a property.

Since the inception of the National Credit Act, lending criteria has become stricter, and many people find it difficult to obtain the credit required to purchase their dream home.

Home mortgage lenderswill look at the following aspects when they assess your application:

Your credit rating - this is the score you receive based on other credit you have had. Remember that certain credit information, for example being labelled as a bad payer, can stay on your record for a while, and even though it does not mean that your mortgage will not be granted, it may put you in a higher interest rate class.

It is very important to know what your credit history says - you are allowed to receive a free copy in the month of your birth every year. Make sure that you obtain it, and see whether the information herein is correct. With the increase in identity theft, it can be possible that other people are making debt in your name, and you therefore have to make sure that it is taken care of before you land in serious trouble.

Your monthly expenses also play a big role. If you have too many creditors, and hardly have any cash to spare once your bills have been paid, you will have a rough time getting a mortgage. Make sure that you get your debt under control before applying for a mortgage.