4 Tips for you to make FNB home loans application far more easier"

Applying for a home loan is like playing cards its either you have the best hand or not. So how do you get the best chance of nailing a home loan?

 

The best way is to make yourself attractive prospect. Make yourself pleasing in FNB Home Loans' eyes. They should look at you and smile because they know they have found themselves a worthy client.

Banks and lenders judge their applicants based on a variety of factors. These are debts, credit scores, income per month and savings.

So if you want to be an attractive applicant you have set a plan to clean up any mess you've made under those factors. To get you on a good start here are some helpful tips to make your life easier.

 

4 Tips to an Easier Home Loan Application:

 

1. Start Saving like a Crazy Person:

 

From the very start you know you have to save when your opting for financial help. Banks want people who can put down a considerable amount in their down payment. For them, this means that you're serious and you have the means to pay them back.

For your side, a bigger payment now means lesser money to borrow which then means a much more easier task to complete which also means a much better chance of getting approved.

2. Strive to Settle and Finish Debts:

 

Debts are always a bad sign for lenders. They look at it as something that you have to pay for monthly with your home loan and that's not very reassuring. So the problem here is if you want a high value loan, they can't give it to you when you have revolving debts. So settle your debts and make yourself attractive.

3. Get a long term job with a salary that can pay off the monthly fees:

 

You need to have job that is capable of paying the monthly dues. With that said, if the bank doesn't see your current job capable they might doubt your application. 

4. Do not just play the game, be in it to win it:

 

You can look at the home loan application as a game. There are many factors or opponents that will get in your way. Your responsibility is to find ways to beat them. 

Find out what the banks are looking for and strive to make things work and match on your side. Give them something to work with. Settle your debts, review and fix your credit and credit score and get a job preferably long term and within the same line of work.

You can do a lot of things to improve your chances of loan approval. 

If things get too complicated for you,  you can always ask the help of a professional at the very start. You can hire a mortgage expert or a loan officer to help you with the whole process.

Don't just pass an application and pray to the heavens that it may be approved. Help yourself, help the bank help you. Prepare the necessary requirements to make things work.

Debt Consolidation - Is It a Viable Option?

Debt Consolidation is a way for you to ease your monthly cash flow. By doing debt consolidation you roll all your smaller debts and loans into one big loan.

Usually the debt consolidation loan is at a much better interest rate than the smaller debts and loans which not only make it easier for you to pay, but also makes brilliant financial sense.

Debt consolidation also ensures that you only pay one installment toward your debt each month and not a whole lot of smaller repayments.

If you have a home loan debt consolidation is quite simple to do. As long as you have enough equity in your property you should get a second bond and use that to consolidate your debt.

Many companies also do debt consolidation in the form of debt counseling and administration...be sure to educate yourself on what each of these mean and what the implication would be before signing anything.

To apply for debt consolidation simply click the link.

Review on the Advantages of Choosing SA Home Loans

SA Home Loans started granting bonds to South Africans since 1999 and since then has grown it's client base rapidly due to their innovative way of looking at home loans.

Some of the advantages of using SA Home Loans to get a bond approval are:

1. Criteria

They differ from normal commercial banks in that they will still consider you for a loan if you've had credit problems before, however, they need to be paid up and you must have the proof.

They have taken the stance that they will simply price the loan according to the client's criteria, but won't just give a NO if there is merit in the application.

Pricing the home loan would involve approving it at a higher interest rate or granting a lower amount or both, because of the risk involved.

Therefore, the applicant may only get a 80% bond.

2. Flexible Packages

Read the rest of this article about SA Home Loans <- here.

Review on SA Home Loans Options

Interesting post about SA Home Loans and what products they offer:

http://knol.google.com/k/knol/Search?q=review-on-various-sa-home-loans-options

Beware When consolidating debt

Always ask as many questions as possible, and if you can, get the advice of an independent person.

One of the pitfalls of debt consolidators is that they conceal Administration with debt consolidation.

If they put you under Administration it's a court order taken against you that for a certain period - minimum 5 years - you are not allowed to get any further credit anywhere.

They don't settle your debts!

These companies don't settle your debts, they simply make arrangements with the creditors to pay them off - unfortunately so much interest is charged that it's difficult to make a dent in the debt.

Make sure of your facts and always read everything before signing.

For more debt consolidation information visit our website on: www.globalproperty.co.za

How To Create A Debt Consolidation Plan

Debt Consolidation - Many people are in debt struggling to pay their monthly bills. Most people are looking for help in creating a debt consolidation plan in hopes to be able to afford their payments and still be able to live. Some people will go to a consumer credit counseling agency, but many people are learning how to do it on their own.

Having a debt consolidation plan, individuals can determine the best way to get out of debt. There are so many different methods to getting out of debt, but all of them require you plan it out and budget it correctly. This will also help the individual to stay out of further debt.

Click here to read the rest of this debt consolidation article...

Drop in Interest Rates

The banks have dropped their prime lending rate to 9.5%. What does that mean for you? Well, your R500 000 home loan will no longer cost you R4785pm but R4624pm
R750 000 home loan will no longer cost you R7177pm but R6936 pm
R1 000 000 home loan will no longer cost you R9570pm but only R9248pm.


This also means that if you want to refinance or take out a 2nd bond you'll qualify for a little bit more - now is the time, contact us today: http://globalproperty.co.za/contactus.html

Debt Consolidation Articles

Check out all my debt consolidation articles on Ezine, click the link

Want A 2nd or 3rd Bond? Be Careful!

If you are considering taking our a 2nd or 3rd bond to consolidate your debt, make sure you work with a professional home loans consultant.

There a quite a few pitfalls and traps one could walk into if you are not careful.

1) Debt Consolidation Pitfall 1 - Refinance

Many people wanting to consolidate debt want to take a 2nd bond, and unknowingly actually refinance. Now, that's not a bad thing if you are told upfront and you know what you're letting yourself in for, but if you didn't know, and now you start paying a bond all over at 20 years again, you'll be very angry.

Tip: If you don't want to refinance, tell your debt consolidation expert that you want the 2nd or 3rd bond to run along with the original bond.

2) Debt Consolidation Pitfall 2 - Fall Back into Debt

If you have taken a bond to pay off your debt, you already have an additional amount to pay. Don't fall into the trap of thinking that you now have all this credit available on those credit cards and that you can start spending again. If you do you'll have the same debt burged plus the additional payment of the 2nd bond.

Tip: If you have paid off your credit cards, cut up the cards and close the accounts. If you feel you absolutely must have one for emergencies or for your petrol expenditure, close all but one.


Remember, consolidating your debt into your bond is a good thing, if you take the wise route and avoid the pitfalls mentioned about.

For more tips or if you want to consider responsible debt consolidation loans, contact your debt consolidation expert today.

Debt Consolidation Loan

Calling all home owners and non-home owners - if you want to consolidate your debt but you are blacklisted - contact us because we can still help you.

Of course, there are some rules, but we can help the majority of people (not debt review or administration unfortunately)

So why not contact us for a debt consolidation loan today.

Home Loans: Pitfalls of Refinancing Too Often

SA Home Loans: There are times when it make sense to refinance you home loan like when you are lowering your interest rate enough to make a noteworthy difference in your mortgage payments or when you significantly decreases your loan term.

Another benefit is you need to consolidate your debt to improve cash flow. However, do not make the mistake of converting short term debt into long term debt. Rather keep the repayment short so that you can derive the maximum benefit from refinancing.

You have to carefully consider if refinancing your home loan will be beneficial to you not just in the short term, but over the long term too.

One mistake that a lot of people make is that instead of making refinancing a once off event , they apply for a refinance loan every time there is a little bit of equity available.

Some think that if they consolidate some of their high interest debt in the process that they’re basically debt free. However, except for decreasing your equity each time you refinance you are also increasing your home loan debt.

Instead of paying off your mortgage debt you have increased your loan term. If you refinance too often, although your monthly payments may go down it will cost you a lot of money over the long term.

Keep in mind that in the beginning of your home loan the largest part of your payment goes toward interest and not towards the reducing your capital. So, if you refinance too often you’ll end up paying the maximum interest for a very long time.

If you want to protect your equity use it as wisely as possible.

To find out more perks and pitfalls on SA Home Loans, visit our website through the links.

Home Loans Under Water

Many home owners are in arrears with their home loan installments or other accounts and they would like to apply for a bond to consolidate their debt. Sometimes it seems the banks just don't want to help.

It seems that the banks want to give you an umbrella when the sun shines, but when it rains they take it away....

Take heart, there is a solution where a home owner can get a home loan even if his accounts are in arrears.

There is a company you can be referred to that will advance a sum of money to pay off your debts and then clear your record. The debts are settled within the first month and the process of removing listings from the credit bureau takes 3 - 4 months.

Then they hand your file back to your home loans broker to do a regular bond at the bank because you now have no debt and a clear record. With the bond, the company is paid back their money plus interest (that's how they make their money) and you only have your bond and car (if applicable, because they don't settle cars) to pay.

This is nothing negative on your record and is not administration or debt review - it will actually clear your record.

For more information on these types of home loans, don't hesitate to contact us by visiting our website on http://www.gpfmortgage.co.za/home-loans.html

What are Your Options to Consolidate Debt?

Should one consolidate debt in a time when interest rates are so low? Is it a good thing? The correct answer would be absolutely ‘yes’.

Why do so many people shy away from the option to consolidate debt? To answer that question we’ll discuss 2 options and what their good and bad points are.

Consolidate Debt with a Personal Loan.

If you try to consolidate your debt with a personal loan you will probably end up paying a large installment because personal loans go up to a maximum period of 5 years.

The interest on a personal loan is also much higher than a home loan. If you are not a home owner, then a personal loan is the only option you have if you want to consolidate debt.

Have a look at the various accounts you want to settle and compare that to the personal loans’ interest rate and decide if it would be worth while. As a last resort to improve monthly cash flow – add up what you want to consolidate and compare that to what the new personal loan installment will be and see if you will be better off at the end of the month.

Consolidate Debt with a Home Loan or Refinance Loan

If you are looking at using your home loan to consolidate debt it would be a wise option. This is because interest on a home loan (at time of writing this article) is only 10.5% and all other debts normally average to more than 20% p.a., so this shows you will save quite a bit per month.

You will immediately see a drastic improvement in your monthly cash flow after you consolidate debt, but remember, you should put at least half of what you now have extra into your bond account, otherwise you’ll be paying off those debts over 20 years.

So yes, by getting a loan to consolidate debt you could significantly improve your monthly cash flow, but you must look at the various interest rates and monthly installments before blindly going into it.

Click here for more information on how to consolidate debt.

2 Things a Debt Consolidation Loan is Not

Okay, so you know what a debt consolidation loan is and how it works and what it can do for you, but do you know what a debt consolidation loan is not?

It’s good to know as you will have an even better idea of what a debt consolidation loan entails.

1) A Debt Consolidation loan cannot be used to Catch Up on Arrears Payments

A Debt consolidation loan can’t be done if you are in arrears on accounts, as the bank will look at your profile and according to that they will decline it.

You need to apply for a debt consolidation loan before you fall into arrears on the mortgage or other accounts, only then will are you able to able to consolidate because your mortgage originator will be able to do a full motivation on your behalf.

What does a motivation entail? A motivation needs to be done if you are applying for more debt than you can currently afford, but it’s actually for debt consolidation.

A reputable mortgage originator would show your current situation as well as the future situation if the debt can be consolidated. You would also need to provide the latest statements or settlement letters of the debt to be consolidated.

2) A Debt Consolidation loan is not Debt Review or Administration

A Debt consolidation loan should not be confused with debt review or administration because firstly, as mentioned above, you will not be in trouble already, and secondly your debt will not be paid in monthly installments.

With debt review or administration they will negotiate with your creditors and you pay the administrator or debt counselor a monthly amount and they split it up between your creditors.

Getting a Debt consolidation loan will see the bank giving you a lump sum to settle your debt, or, if they feel it’s necessary, instruct the attorneys to settle the debts first and then give you what’s left over, if anything.

That means that you will only have your bond to pay on a monthly basis.

As you can see, now that you know what a debt consolidation loan is not, also helps you get a better picture of what it’s about and your ability to make an informed decision.

Reduction in Interest Rate

The SARB announces a half a percent cut in the repo rate.

Over-indebted South African consumers are now breathing a sigh of relief because they will now spend less per month on high interest credit cards, vehicles and personal loans, and also enjoy a reduced bond installment.

This is a very good time for you to consider a debt consolidation loan, as interest rates are at their lowest in 3 years.

For more information on debt consolidation, please visit our website on http://www.globalproperty.co.za

Why Apply For a Refinance Loan to Ease Your Financial Burden?

The individuals that have a property with equity in have an advantage when looking at consolidating debt. They have the option of applying for a refinance loan to solve their dwindling cash flow.

What is equity?

Equity is the positive difference between the market value of your property, and the outstanding bond. So if you owe less than the value of the property you have equity in your property. After you have bought a property, the normal course is that the value will increase, and your bond will decrease as you pay it off. This will increase your equity.

When the equity has increased sufficiently, you can apply for a refinance loan. This would mean you are applying for a home loan on an existing property, and thereby accessing the equity in your property.

Why apply for a refinance loan?

If you, like many others, are looking for a way to consolidate your debt, or just access additional funds, this is a good option. Since your mortgage is the “cheapest” kind of debt that you can have, you will be able to increase your cash flow tremendously. If you compare the lower interest rate and longer terms that a home loan can offer, with credit cards, personal loans or other high-interest debt you might be surprised to see the difference.

If debt consolidation is your goal, a good advice is to invest some of the additional cash you have available into your home loan. This will help you pay off your mortgage quicker, and will increase your equity again.

Since applying for a refinance loan can a daunting task, you can make use of a professional mortgage originator to assist you during this process. This will take a lot of pressure off your shoulders, and you can rest assured you will be in good hands.