Get pre-approved or apply for a home loan in a few simple and easy steps.
Pre-Approval is the First Step
to Home Finance Process.
Are you currently in the market to purchase a new home or property? If yes, it is very important to ensure that you have taken the initial step of the home search process. This includes determining your affordability or how much you could qualify for when submitting a formal home loan application to our banking and/or lending institutions.
This process involves getting Pre-Approved – which is simply a formal Affordability Assessment and takes into account your individual or combined family Monthly Income & Expenses, Credit History and current Credit Score.
Getting Pre-Approved is a very important and recommended initial step home buyers must do before embarking on their house hunting quest – with it you can determine your Maximum Loan Affordability or amount banks may be willing to grant you depending the indicated matrix – it may also help reveal any obstacles that may hinder the success of your home loan application, such as any credit history related or affordability challenges issues.
Key Article insights
(benefits of getting pre-approved)
- Pre-Approval: Helps to determine your affordability – also known as the Maximum Home Loan Amount you can qualify for.
- It is determined by taking into account the home buyer’s individual or household Total Monthly Income – and is normally limited to only a Maximum of 30% of the monthly household income than can be used towards servicing debt your – better know as (Debt-to-Income-Ratio) allowed, less any Deposit Funds available, which reduces the Total Loan Amount applied for and Total Debt Repayable.
- Putting down a deposit amount is advisable and helps to reduce the your Monthly Repayment as well as lower your Total Interest Payable over your Loan Repayment Term.
- The Pre-Approval process also comes with a formal Pre-Approval Certificate, which is simply becomes your official passport to a smooth house hunting expedition.
- A Pre-Approval Certificate not only gives you confidence – but also puts you in a favorable light with sellers when they know they are dealing with a Pre-Approved home buyer.
Process Steps
- Identification Verification: Smart ID Cards, ID Book, Passport etc.
- Income Verification: Payslips, Rental Income, Bank Statement etc.
- Credit Assessment: Credit History – Account Payment History, Credit Score
- Affordability Assessment: Calculate Affordability – use Monthly Income & Living Expenditure etc.
Required Documents
- Identification Verification: Smart ID Cards, ID Book, Passport & Proof of Residency etc.
- Income Verification – Natural Persons: Payslips, Rental Income, Bank Statement etc.
- Income Verification – Juristic Persons: Business Income Statements, Business Financials, Bank Statement etc.
