Getting a SA home loan approval is normally not easy to start with, but if you have someone with the right knowledge and expertise you shouldn't have too much trouble getting your approval.
If you have had credit problems you will have more difficulty getting a home loan. The main SA home loan approval requirement is a clear credit record. So what can you do if you have a low credit score or if you have items against your name.
- To improve your credit scoring, always ensure that you pay the full amount due to each creditor every month. Also, ensure that you pay it on time. Late payments will affect your credit record.
- You have to pay up debt that you owe. Even if a company has taken judgment against you or if it is written off you must pay it up as it's money you owe.
- If you have paid up the debt you have to send the credit bureau proof of payment, for instance a letter from the company confirming that the debt has been paid.
- If there is a judgment against your name you have to have it removed or rescinded – it's not enough to have it paid up with the proof. It must be removed off your name.
Remember, banks can only look at your past record to see what the possible conduct of your home loan account will be. Even if there was only a slight mishap, they won't grant it, so make sure you have all your credit problems sorted out before you apply, because the banks are not interested in proof and letters they just don't want to see anything bad on your profile.