PREQUALIFICATION | A Buyers Edge to Purchasing Property

If you are looking to invest in a property or purchase a home, Prequalification is highly recommended.

Most buyers are aware that “Cash is King”, however, the next best thing is being PREQUALIFIED for a home loan.

It will assist you in decision making with regards to affordability giving you a fairly accurate indication of the price level at which you can purchase a property, and more importantly it conveys the message to sellers that you are seriously committed to a purchase.

Buyers can be assured that Prequalification does not create any legal or financial obligation or commitment.

A prequalification provides buyers with a good indication of their affordability and credit rating status. These two indicators are essential when purchasing a home. The bank will only approve an amount that you can afford to repay each month, and reject a bad credit rating (under 600).

Prepare from the beginning and enhance your Purchasing Experience
Buying a property can be an emotional and lengthy process. In addition to behind-the-scenes research and viewings, one needs to consider the process of putting in an Offer to Purchase, which—if accepted—is legally binding. This paperwork takes time, and requires input from the buyer, the seller, and the agent.

Without a prequalification, there is a chance that the offer will be rejected due to the time and uncertainty the seller has to endure. Also, keep in mind that if you have been rejected by the banks, you will need to wait three months before reapplying for a home loan.

Benefits of Prequalification
·        Buy with confidence: Knowing your credit score gives you the opportunity to address any issues before putting in an offer. A prequalification also gives you an idea of what you can actually afford.
·        Standing out from the crowd: Sellers are more likely to accept an offer from someone who has a prequalification. It confirms your affordability, and the likelihood that you will be approved by the banks. In a bidding war, sellers prefer cash or prequalified applicants.
·        Reduces Time, Stress and Disappointment for all parties: Prequalification shortens the transfer period by 1 week.

Prequalification Process
·        A prequalification can be easily undertaken online and provides an estimate of what you can afford as it is based on your monthly earnings, expenses and any debt. A certificate is valid for 90 days.
·        While this step won’t guarantee that you will be approved by the banks, a prequalification is an easy way to determine your affordability. However, should a prequalification be declined, it assists prospective homebuyers to be more realistic and to end the process before investing any more time or money into an application.

Click on the link https://www.multinet.co.za/pre-qualify/ to apply or contact our dedicated consultant, Amanda Bond at +27 74 888 5209 or email: amanda.bond@multinet.co.za