In the past if you wanted a home loan you had to go to your bank and make an appointment to see a staff member of the bank’s home loan department. You would then be given a home loan application to take home to complete and return with all the required documentation. Once the paperwork were received by the bank you had to patiently wait for the outcome of your application. Today the whole process of applying for a home loan is made much easier with mortgage originators who will send the documents to the various banks and negotiate the best deals on your behalf. In fact the whole home loan application process can be carried out without you having to leave the comfort of your home.
Your mortgage originator will be able to tell you of all the options that the various banks can offer you. Because the home loan application form must be completed very accurately the mortgage originator will help you with the technical information required such as the details of the property you are purchasing. They will let you know if your home loan has been granted and the bank will then send out a building inspector to value the property.
When you apply for a home loan in South Africa their are a variety of documentation that is required to back up your apllication. You will need to include a copy of the front page of your identity document and if you are married a copy of your marriage certificate as well as Antenuptial Contract. If you are divorced, the bank will require a copy of the divorce order. Applicants that are not South African citizens will need to provide proof that they are entitled to purchase property in South Africa. If you choose not to use the bank’s personal life assurance facilities, you need to provide proof of the alternative policies you have. The bank needs this to ensure that the home loan will be settled in full if you should pass away while the bond is still outstanding.
If you want a home loan registered in the name of a Close Corporation or Family Trust the banks will require some additional documentation. You will have to include a copy of your registered Founding Statement (for a CC) or Letter of Authority (for a Trust). If you have to sign as surety for your CC or Trust, or if some other suretyship is required, the surety document will be drawn by the bank’s conveyancer who will get you to sign it with your bond documents. If you work for a Government Department or company from which the bank requires collateral security, you will have to personally arrange this yourself.
After your home loan application has been approved the necessary bond documents need to be registered. You will meet with the attorneys where all the required documentation will be signed. You will be required to sign a Power of Attorney with the bond document attached, a Debit Order to secure your monthly repayments (a mandatory requirement by most banks these days), authority to pay forms which will authorize the bank to disburse the amount of the loan, the bank’s standard mortgage loan agreement, any specific conditions of the home loan it may have as well as any other required documents such as insurance applications and suretyships.