Offer to purchase question

Zuner said:
Hi all

I've been reading this thread from the beginning.
some very helpful info thanks.

So i've wanted to contribute (it feels like a special privilege to be able to post in thread[at least for me])

I'm about to put in a offer on my first house.
Having crazy stress/butterflies.

I'm at page 39 of 88 so far so haven't ready everything. Hope I don't screw this up.
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Carry on reading - there's a wealth of information, warnings, nail-biting experiences etc.
 
So I have a stupid question: my gross income (for bond applications), is that my Cost to Company or the Cash Salary (amount after they allocate some for pension and bonus)?
 
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prOd said:
So I have a stupid question: my gross income (for bond applications), is that my Cost to Company or the Cash Salary (amount after they allocate some for pension and bonus)?
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The bank take on the 30% rule, but they also need an income and expenses statement needed to see if you qualify.

Let say everything goes up by 5%, can you still afford it, wordt case scenario...
 
zerocool2009 said:
The bank take on the 30% rule, but they also need an income and expenses statement needed to see if you qualify.

Let say everything goes up by 5%, can you still afford it, wordt case scenario...
Click to expand...

I got two figures on my pay slip; Cost to Company (Annual / 12 ) and Cash Salary. There is quite a difference in the two because from the CTC a chunk of money goes to bonus provision and pension fund, cash salary is the remainder. So I'm just wondering which figure I need to use when applying for bonds? If that makes sense...
 
prOd said:
So I have a stupid question: my gross income (for bond applications), is that my Cost to Company or the Cash Salary (amount after they allocate some for pension and bonus)?
Click to expand...

gross is your cost to company, net would be what you get paid out
 
prOd said:
I got two figures on my pay slip; Cost to Company (Annual / 12 ) and Cash Salary. There is quite a difference in the two because from the CTC a chunk of money goes to bonus provision and pension fund, cash salary is the remainder. So I'm just wondering which figure I need to use when applying for bonds? If that makes sense...
Click to expand...
Usually the CTC is counted as your gross.
 
ItherNiT said:
Absa finally got back to me. Offered 6.5 (prime minus .5). Now I'm only waiting for FNB. Personally hoping FNB beats or matches, I really want to swap to them.
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You can always ask them to match or beat your Absa quote if they are more expensive.
 
Speedster said:
Nothing wrong with playing banks off against each other.
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Nothing wrong with it. Its one connected system, as in apply at absa, go to fnb or any bank. Homeloan departments are actually “friendly”. Give an ID and ask did she apply recently or not. They share information easily

Thats why if 95% of banks decline someone, the other bank who got the application finds out why no one wants to help them.

Scary actually
 
prOd said:
Thank you. This is what I did for my SAHL application but the consultant told me to put down cash salary...anyway just wanted to make sure
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SAHL wanted quite a detailed thing when I applied there. They wanted just about my whole payslip - gross, deductions, and net. Plus a whole monthly budget basically.
 
prOd said:
I got two figures on my pay slip; Cost to Company (Annual / 12 ) and Cash Salary. There is quite a difference in the two because from the CTC a chunk of money goes to bonus provision and pension fund, cash salary is the remainder. So I'm just wondering which figure I need to use when applying for bonds? If that makes sense...
Click to expand...
Do yourself a favour and get a good bond originator. They'll make the process a breeze and help you around the little tricks. I can recommend you one if you want?
 
Speedster said:
Do yourself a favour and get a good bond originator. They'll make the process a breeze and help you around the little tricks. I can recommend you one if you want?
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IMHO BOs are even more useless than the banks themselves. If you take a look at their business model you will understand why, to them most important entity is the bank, not the homeloan seeker. I had a very bad personal service experience with a BO and eventually bypassed them and went to the trouble of applying at all banks myself. Got a far better deal within 5 days vs them humming and hawing for 5 weeks.
 
RonSwanson said:
IMHO BOs are even more useless than the banks themselves. If you take a look at their business model you will understand why, to them most important entity is the bank, not the homeloan seeker. I had a very bad personal service experience with a BO and eventually bypassed them and went to the trouble of applying at all banks myself. Got a far better deal within 5 days vs them humming and hawing for 5 weeks.
Click to expand...
I guess you get good ones and bad ones. I've used the same BO three times and been very happy each time.
 
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