Throughout the years myths have been passed on regarding who can or can not qualify for a SA home loan. If you have been thinking of how nice it would be to possess your own home but don't think you would qualify for a home loan, here is a list that will dispel the myths and help you determine if you can finally set about house hunting.
SA Home Loan Myth #1: The only home loan to consider is a 30 year fixed rate mortgage
Years ago when buying a home a 30 year fixed rate home loan was one of the only ways to go about obtaining an affordable mortgage.
Mortgage companies have worked to change the options available to potential home loan borrowers. A loan officer can appraise your situation to see if a variable rate mortgage would suit your needs and discuss your best option.
SA Home Loan Myth #2: Having a Home in Mind is Best to have before you talk to a home loan professional
Although the idea may be nice, you may find out after speaking to a mortgage specialist, that you can not afford the home you have picked out. What you may think you could afford may not work out that way with all things considered.
Laying everything out and discussing your situation with a mortgage professional will save you any disappointments.
SA Home Loan Myth #3: Always get a home loan from your bank
This could very well end up being the worst thing you can do. Over time the mortgage market has become more competitive and more lending companies have become available to offer better loan packages to potential home buyers.
Shopping around and finding a suitable SA home loan lending company could save you money. There are now many companies you can find online to review rates and receive a quote from if contacted.
When dealing with these companies, make sure they have the proper notice to show you that they have an encrypted site and all of your personal information will be protected from getting into the wrong hands.
SA Home Loan Myth #4: Bad Credit-No Chance
Years ago, mortgage companies would not consider you for a loan with bad credit, with the industry now becoming more competitive, new rules have been introduced.
People who have found their credit damaged by poor choices in the past, are now being given a second chance and can qualify for a SA home loan from select lenders. If you have bad credit, little or no credit, talk to a SA home loan specialist to see what your options are.
SA Home Loan Myth #5: If you have no down payment you will have to pay huge interest rates
Many people are under the assumption that if you do not have a down payment, you will be stuck having to pay a huge interest rate and extra mortgage insurance coverage. If you do not have a down payment fund, do not let that stop you from inquiring into your options to combine your loans and get that home you so desire.
These are the most common of the myths surrounding home loan approvals. Friends and family may not always know what is the latest in the home loan industry standards. Speaking to a qualified SA home loan professional can spare you time and aggravation and get you started picking out that house of your dreams.
So, before applying for SA Home loans, think about your situation and ask your mortgage broker for advice. Visit our home page on http://www.gpfmortgage.co.za for more information
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