We have just viewed a post on Facebook where the original poster only applied at their bank and was approved for a 100% home loan. Unfortunately, they were not informed that they would need to budget additional money for the registration and transfer costs, and as they did not have any savings, they now did not know where they were going to get the additional R50K to complete the deal.
The problem is that if they now apply for an additional loan and incur more debt, their financial status (affordability) will change, and they run the risk of the original home loan being withdrawn.
As another person mentioned, if they don’t acquire the monies required, the deal will fall through, and not only will they lose the property they fell in love with, but they will still be liable to penalties and fees for cancelling the deal.
Once the bond has been granted, buyers are advised not to make any large purchases on credit, for example, motor vehicles, furniture or personal loans until after registration. Some banks take this to the extreme and do final verification anytime up until the day of registration.
This situation is the number one reason why you must use a reputable and experienced Bond Originator, who will not only apply at all the banks for you but will ensure that you budget correctly for all the associated costs and fees involved in the transaction of purchasing a property. As well as ensuring that you are awarded a sufficient loan amount, to successfully conclude the purchase of the property of your dreams.
To prevent this from happening to you, please contact Martin at 082 447 3463 or Shannon (in the Western Cape) at 084 701 2865 and we will arrange the best home loan for your budget and needs.