How to apply for a home loan
In the first of our four-week series of expert 'on the house' advice from FNB, we look at the process of applying for a home loan, including drawing up a household budget.
Applying for a home loan can be daunting.
Your first step in the process should be to draw up an accurate household budget.
If you don’t have a handle on how you are spending your money, you will only be able to guess how much you can afford to spend on your repayments.
As a guideline, you shouldn’t be looking at spending more than 30% of your after-tax income.
The affordability process is the crux of the application process.
In order to confirm your affordability against the loan required, you will need to have your identity document, proof of address, most recent salary statement, past three months bank statements and a detailed breakdown of your income and household expenses available for the bank to view.
Additional expenses to consider when looking for a new home are expenses such as the deposit required, transfer duties, bond initiation and registration fees, municipal deposits, occupational rental, and ongoing rates and taxes.
Click here for more expert advice 'on the house' from FNB.
*Advetorial copy supplied by FNB*