Home Loan qualification questions

F1 Fan said:
Alrighty, as I've stated, it was my experience. Also, I was not willing to consider loans with crazy interest rates, so the final offer I took was 7.95%. This was November 2012.
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Apologies if the tone of my post was a little abrasive. :love:
 
Ancalagon said:
Also, do you guys have your bond interest rate pegged to the prime interest rate, or fixed? Which is better?
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At the moment floating is better. Usually the fixed rate will be 1 or 2% higher than the floating rate and its unlikely that interest rates will increase that much in the next 2 to 3 years.
 
Okay, this is a house related question, but not necessarily home loan related. Didnt think it was worth starting a new thread.

Anyway, can anybody give me an idea how much the following renovations would cost? I'm thinking of buying an older full title property that needs work, and doing as much of it as I can (garden, tiling etc). However, there are things that I cant do, so I want to get an idea of how much they cost before I buy something I cant afford to improve.

New kitchen with decent (not necessary granite) counter tops?
New bathroom with shower?
New perimeter wall? EDIT: Maybe price per m of wall?
New pool?
Cover/awning for patio?
 
SA HomeLoans sorted me out quick quick, they are the best compared to all the banks and ooba.Give them a shot first.You dont need to be pre approved but it helps.The bigger headache is finding a house that you and your better half like, that took us 8 months.Loan only took 2 months.
 
Ancalagon said:
Okay, this is a house related question, but not necessarily home loan related. Didnt think it was worth starting a new thread.

Anyway, can anybody give me an idea how much the following renovations would cost? I'm thinking of buying an older full title property that needs work, and doing as much of it as I can (garden, tiling etc). However, there are things that I cant do, so I want to get an idea of how much they cost before I buy something I cant afford to improve.

New kitchen with decent (not necessary granite) counter tops?
New bathroom with shower?
New perimeter wall? EDIT: Maybe price per m of wall?
New pool?
Cover/awning for patio?
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Bathroom with Shower ~ A new one or improving? Improving one R7-15k
Pool - New pool is R55k + for a good job excl. water :p
 
We recently went through buying a house. Took us a total of 4 months (including getting the perfect house that suits us). We take occupation on the 1st of October. Make sure you have money for transfer & lawyer fees, it can get a bit much :(
 
Answers in line in red,

Ancalagon said:
Okay, this is a house related question, but not necessarily home loan related. Didnt think it was worth starting a new thread.

Anyway, can anybody give me an idea how much the following renovations would cost? I'm thinking of buying an older full title property that needs work, and doing as much of it as I can (garden, tiling etc). However, there are things that I cant do, so I want to get an idea of how much they cost before I buy something I cant afford to improve.

New kitchen with decent (not necessary granite) counter tops? Assuming say a 20sqm kitchen, you're looking at R20k - R40k including tops, excluding appliances, i'm going to be doing a 50sqm kitchen soon enough, and I think I'm going to be in for nearly R70k for cupboards alone.
New bathroom with shower? Assuming you're gutting the bathroom and starting again, you're looking at about R20k+ depending on the finishes and quality of fittings, you could go up to R100k for a bathroom quite easily... my main ensuite is budgeted at R60k atm.
New perimeter wall? EDIT: Maybe price per m of wall? I think I saw a price of around R1800 per m... give or take
New pool? Depending on the size, buy an average size pool will hit you down for R60k I would assume
Cover/awning for patio? Probably about R20k is my guess...
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I recently got a quite for redoing the roof on my stoep.

24500 for the fancy Aluminium louvre.

11500 for the plain variety.
 
Okay, I've got another home loan questions

Lets say I want to buy an old house and fix it up. My question is, how likely is the bank to lend me the money I would need to do it up? I mean, the value of the loan could end up being 30-50% more than the value of the property. I will get advice and possibly quotes before even making an offer, I just want to find out how likely it is that a loan application will be approved.

Some things (hopefully) in my favour:
I will be a first time home owner, so no existing property to sell
I own my car outright, so no monthly car repayments
No debt at all
On my second cellphone contract in 4 years, and have had a credit card that I have been using extensively (for everything) for nearly 4 years, and paying off every month.
Never got a late payment reminder
Earn a pretty good salary - online calculators say I could afford a bond much bigger than the bond I actually want.
Can provide a deposit pretty close to R100k.
Not sure about this one -> The properties I am looking at are in need of work (as in serious work), so I am hoping to offer substantially less than a valuation report says they are worth. If the calculation goes on loan to value as per valuation and not loan to purchase price, it could go in my favour.

Any ideas? I suppose I will have to contact the bank right? But they dont do pre-approved finance anymore?
 
Ancalagon said:
Okay, I've got another home loan questions

Lets say I want to buy an old house and fix it up. My question is, how likely is the bank to lend me the money I would need to do it up? I mean, the value of the loan could end up being 30-50% more than the value of the property. I will get advice and possibly quotes before even making an offer, I just want to find out how likely it is that a loan application will be approved.

Some things (hopefully) in my favour:
I will be a first time home owner, so no existing property to sell
I own my car outright, so no monthly car repayments
No debt at all
On my second cellphone contract in 4 years, and have had a credit card that I have been using extensively (for everything) for nearly 4 years, and paying off every month.
Never got a late payment reminder
Earn a pretty good salary - online calculators say I could afford a bond much bigger than the bond I actually want.
Can provide a deposit pretty close to R100k.

Any ideas? I suppose I will have to contact the bank right? But they dont do pre-approved finance anymore?
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Not sure if they do pre-approve any more as many have mentioned in the thread. Phone bank and ask :)
Pool party at your place :D
 
The bank will be very reluctant to give you money over and above the market value of the property initially... I looked into this, and the banks are happy to give loans on purchase price, but not really above it because if you fail to pay the bond, and haven't done the renovations, they will be out of pocket.

You can get a renovation loan after the fact, but thats an extra R15k - R20k in bond registration etc fees...
 
Thanks.

I think I'd have to forget about using a loan to pay for renovations. I'll have to apply for a 108% loan, and then use what would have been my deposit to pay for the renovations, as and when I can afford them.
 
Hi all, re; the original home loan question; I'm on a 12 month fixed contract with a splendid credit record :). I'm going to apply for a home loan in the next week and will give everyone an updtate re the outcome.
and Yes SA Homeloans is better than all other banks. I have a bond with them and their service is phenomenal!!!
 
foschinni said:
Hi all, re; the original home loan question; I'm on a 12 month fixed contract with a splendid credit record :). I'm going to apply for a home loan in the next week and will give everyone an updtate re the outcome.
and Yes SA Homeloans is better than all other banks. I have a bond with them and their service is phenomenal!!!
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You could get a bond as a contract employee? Ha! Something seems odd here.
 
I'll also find out soon, I've found a place I want to buy. Its a new sectional title unit.
 
Update! Yes you can get a home loan as a contract employee, as long as the contract is at least for a duration of 2 years. My contract is 1 year so :(
 
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