There is always a first time for everything including home loans. So, if it is your first time to apply for a home loan in South Africa, remember that there are special requirements you need to have in order for a bank or a lending company to grant you with the loan you are asking for.
Here are the requirements for home loans for first time buyers.
- You will have to provide the bank or the loaning company a copy of your monthly income. This will determine whether you can afford monthly payments that will be required of you once you have secured the loan for your home.
- You also need to show your credit history. This will show the bank whether you are able to pay on time or not; but if the bank or loaning company sees you are able to pay promptly, the better the chances of being granted a loan.
- If you want to get a home loan, you need to be twenty one years old or older. Any person who is younger than this age is automatically not allowed for screening and to get a loan.
- Home loans for first time buyers require that you are permanently employed for six months. If you are not employed in any company, you should at least be able to show that you have been or is self – employed for two years. These requirements are very crucial because it shows the bank how you are able to pay for the home loan.
- You need to show at least three months of your bank statements if you are currently employed.
- When you go to the bank, make sure you have a copy of the written agreement between you and the seller of the property.
- Most banks will require you to show your pay slip and they will require the most recent ones so make sure to have this at hand when you apply.
- If you are a business owner or self employed, make sure to bring a copy of your business account statements. Six months of this requirement will be asked for. Also, you need to bring copies of your personal bank statements. Six months of this requirement will be asked of you as well.
Lastly, you will need a letter stating your monthly income. This is to be written or approved by an auditor or an accountant.
Home loans for first time buyers require a little more documentation. So, make sure that you have all the necessary documents with you. The reason why the banks require all this information from you is to see if you are capable of repaying the loan.