Buying a property and applying for a home loan can be an administrative nightmare. The requirements for the supporting documents will vary depending on the type of home loan as well as the bank.
“It is important to note that each bank will have slightly different requirements, which is why it can be useful to work through a Bond Originator who can apply at all the banks on your behalf and come back to you with the best offer,” recommends Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett.
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In general, Goslett explains that employed individuals will need the following documentation for the application:
- Proof of income: This will be your latest payslip, however, if you earn. commission or overtime, you generally will need to provide the last 3 months' payslips.
- Bank statements: Most banks require your latest 3 months’ personal bank statements.
- Identification document: If you are using a smart card, include a copy of the front and back.
- Marriage Certificate: If you are married, you will need to provide a copy of your marriage certificate, as well as a copy of your ANC agreement if you have one.
- Copy of purchase agreement or signed offer to purchase.
- Proof of residence.
“If you are applying with a partner, relative, friend, or spouse, they will need to provide the same documentation as well,” he adds.
Goslett also mentions that the bond application process looks a little different for the self-employed individual.
In addition to the above, he explains that those who are self-employed will usually need to submit:
- A three-years set of signed financials;
- An auditor's letter stating the income and the expenses paid for by the business;
- A personal statement of assets and liabilities;
- 3 months’ personal bank statements;
- 6 months' business bank statements;
- The latest IT34 from SARS.
Those who are buying a property as a Company or a Trust will also need additional documents when applying for a loan. This includes the Trust deed as well as a Letter of Authority, which is a letter from the Master of High court with information on who the trustees are and giving the trustees the authority to act within the interests of the trust.
Those who are building a home, will need to apply for a building loan. In general, Goslett explains that when applying for this sort of loan, you will need to submit the building plans and detailed quotes, the building contract signed by you and your builder, the builder’s NHBRC Certificate, and a schedule of finishes that clearly indicates the materials used and the costs for erecting the building.
“Applying for a home loan is usually the final hurdle to owning a property. But, before you worry about the home loan, contact your local RE/MAX office to help you find the dream home that is worth lacing an offer on,” Goslett concludes.
Writer : Kayla Ferguson
