Offer to purchase question

[marysms]

alberton?

Pretoria

 

[TechGirl04]

Its always advisable to register a bond amount greater than your current bond if you anticipate that you might require a building loan in future.

How do you register a bond amount greater than your current bond? Can you do this when you purchase the house?

 

[prod]

How do you register a bond amount greater than your current bond? Can you do this when you purchase the house?

You have to apply for the the full amount + extra at the bank, i.e. 105% and afaik banks dont easily do this. Could be wrong though

 

[TechGirl04]

You have to apply for the the full amount + extra at the bank, i.e. 105% and afaik banks dont easily do this. Could be wrong though

Ah OK. Yes I also thought banks don't do this anymore.

 

[The_Mowgs]

Ah OK. Yes I also thought banks don't do this anymore.

I think they still do, especially for 1st time buyers

 

[zerocool2009]

Banks still do on lower packages!

 

[SauRoNZA]

We experienced an interesting situation yesterday. Went to view a property with some nice extra features including a load shedding back up system.

The house was originally on the market for just under R3 mil, listed at the beginning of May. There has been a lot of interest and viewings but no offers yet. Seller then dropped the price to R2.7mil a week or two ago.

My husband asked the agent about the load shedding back up system. The agent told us that the seller has decided to remove that from the house sale, because he had to lower the price. This seems a bit odd to me - the house was already not selling at the current price with the original listed features (including the load shedding back up). Now, the seller dropped the price and removed one of the attractive features.

If a proper system that’s likely what it originally cost to install.

Likely not everyone is seeing it as that decent of a feature and hence seller is looking to recoup that cost by selling it or moving it to new property.

You could likely offer 2.9 and strike a deal with the system.

 

[Mike Hoxbig]

If a proper system that’s likely what it originally cost to install.

Likely not everyone is seeing it as that decent of a feature and hence seller is looking to recoup that cost by selling it or moving it to new property.

You could likely offer 2.9 and strike a deal with the system.

Would depend on the system though. If it's just a backup consisting of a few lights and plugs, offering 200k more wouldn't be worth it. You can go mostly off-grid for that.

Either way, I would have a conversation with the guy, get details about the system and then decide if it's worth offering closer to the original price...

 

[Gozado]

I wouldn't do this. Having multiple applications on your name at the same bank will most likely only cause issues.

What issues could it cause, for example? How could it be to the buyer's disadvantage, to shop around for the best deal, directly with banks, or through a bond originator, or both?

 

[MGMT]

What issues could it cause, for example? How could it be to the buyer's disadvantage, to shop around for the best deal, directly with banks, or through a bond originator, or both?

From a credit application stand point, the more credit enquiries in a short space of time = the riskier the profile.

 

[Gozado]

Maybe that's part of the explanation I've been missing, all along. It seemed to me to make sense to shop around to get the best deal.

But, oh, well, if each further enquiry somehow casts one's credit profile into a dark place of being regarded as increasingly risky, then had one better just take cap in hand and accept the first mortgage offer? Surely not. Why, exactly, does "more credit enquiries in a short space of time = the riskier the profile"?

 

[zerocool2009]

More credit looks = you might be in crap... which means your rate wont be that good.

 

[MGMT]

Maybe that's part of the explanation I've been missing, all along. It seemed to me to make sense to shop around to get the best deal.

But, oh, well, if each further enquiry somehow casts one's credit profile into a dark place of being regarded as increasingly risky, then had one better just take cap in hand and accept the first mortgage offer? Surely not. Why, exactly, does "more credit enquiries in a short space of time = the riskier the profile"?

Understanding credit checks | ClearScore

Our guide to everything you need to know about credit searches.

www.clearscore.com

"If you make several applications for credit in a short period of time, this may have an even greater impact on your credit score. This is because having several hard enquiries carried out in quick succession may appear to anyone looking at your credit report that you’re desperate for credit, or that you’re suddenly struggling with your current debt.

Even though this may not be the case in reality, this makes you appear to be a riskier person to lend to"

Credit profiles are generally computer driven so there are no human intervention where reason can be used. "Oh he was shopping around for insurance,lets not include that in his/her profile".

 

[Gozado]

How absurd!
Please, would someone who buys - and who manages not to do the cap-in-hand bit, who knows how to cut through this downgrading oneself just for having asked a question - please explain how they shop around for the best deal on a bond?

 

[Mawirepower]

How absurd!
Please, would someone who buys - and who manages not to do the cap-in-hand bit, who knows how to cut through this downgrading oneself just for having asked a question - please explain how they shop around for the best deal on a bond?

The objective is not to get the BEST deal but a BETTER deal by making a FEW loan providers pit each other within the limited time stipulated in the OTP!

 

[TheBadMadMan]

How absurd!
Please, would someone who buys - and who manages not to do the cap-in-hand bit, who knows how to cut through this downgrading oneself just for having asked a question - please explain how they shop around for the best deal on a bond?

In todays world you may not ask the real questions.

Of course, if you do and if you're lucky, there will be a barely satisfactory answer that cannot be disapproved yet neither can it be proven to be factual/true.

 

[PsyWulf]

How absurd!
Please, would someone who buys - and who manages not to do the cap-in-hand bit, who knows how to cut through this downgrading oneself just for having asked a question - please explain how they shop around for the best deal on a bond?

Just don't take out a personal loan,credit card,car finance,and then also have 5 bond originators quote each bank along with your own bank applications

 

[marysms]

Maybe that's part of the explanation I've been missing, all along. It seemed to me to make sense to shop around to get the best deal.

But, oh, well, if each further enquiry somehow casts one's credit profile into a dark place of being regarded as increasingly risky, then had one better just take cap in hand and accept the first mortgage offer? Surely not. Why, exactly, does "more credit enquiries in a short space of time = the riskier the profile"?

The credit rating system has a lot of holes, its not there to protect the the individuals but rather credit providers. For instance if I am making a home loan application why can I not apply to multiple institutions to get the best quote? It goes to penalize you when you look for competitive quotes for insuring the same property both from a building and life cover perspective. Instead of rewarding you for good financial risk behavior your profile is flagged as risky, crazy right.

 

[MGMT]

How long does it take on average for the transfer attroney (on behalf of the seller) to get cancellation figures?

Was first contacted by the transfer attroneys on the 23rd of June. Seller had to go in to FNB to verify signature as his signature on the bond cancellation did not match their records. He could only do so on the 16th of July as he had to isolate (covid).

Today's the 26th of July and no word from them yet if the cancellation figures have been received.

 

[Tman543]

The credit rating system has a lot of holes, its not there to protect the the individuals but rather credit providers. For instance if I am making a home loan application why can I not apply to multiple institutions to get the best quote? It goes to penalize you when you look for competitive quotes for insuring the same property both from a building and life cover perspective. Instead of rewarding you for good financial risk behavior your profile is flagged as risky, crazy right.

I don't think has that big of an impact on your credit rating. Unless it is different types of credit. (cc, home, vehicle, loan).

But I agree the credit system, is quite stupid. Especially since the credit score is basically you need debt to get more debt