Did you know? "Over 90% of applicants who get prequalified through Ooba Home Loans get approved for a home loan."

As an Estate Agency, we highly recommend getting pre-approved for a home loan. We know that it assists both buyers and sellers in the process! So, we wanted to answer the frequently asked questions that our agents receive from buyers.

In this article we answer the following questions:

1. What is pre-approval for a home loan?
2. Why should I get pre-approved before buying a house?
3. Will pre-qualification improve my chances of getting bond approval?
4. Is pre-approval free?
5. Does the pre-approval process affect my credit score?
6. What are the benefits of using a bond originator?
7. What does a bond originator need from me when applying for pre-qualification?
8. How do I get pre-qualified?

1. What is pre-approval for a home loan?

Getting pre-approved for a home loan includes a buyer having knowledge of their credit score, and what they are able to afford for monthly home loan repayments. Getting pre-approved does not guarantee a home loan, rather, it is an indicator of what the bank will lend to you for a home loan.

2. Why should I get pre-approved before buying a house?

Antonella Werth, Mortgage Originator of Ooba Link, says "By pre-qualifying, prospective homebuyers can confidently make an accurate price offer on their dream property knowing that obtaining bond finance is a mere formality."

The pre-approval process provides you with an accurate assessment of how much you can afford. Knowing this allows you to look for houses within your price range, as well as gives you an advantage in putting in an offer. Sellers are more likely to accept an offer from buyers who have confirmation on the amount they can afford. Lastly, having been pre-approved, you can sign a sale agreement with peace of mind, knowing you are comfortable with the price.

3. Will pre-qualification improve my chances of getting bond approval?

As we know, pre-approval gives buyers an accurate idea of what they can afford. When the time comes to get a home loan, you have already begun your application, therefore speeding up the process and increasing your chances of receiving bond approval for your home loan.

4. Is pre-approval free?

Yes, pre-approval is completely free. Banks pay bond originators a once-off fee, meaning you do not have to pay for their services.

5. Does the pre-approval process affect my credit score?

In short, no, getting pre-approved does not affect your credit score. Think of pre-approval as a means of lenders pre-screening you. The lender needs to ensure you are a good prospect, which, in turn, means there is no guarantee that you will get the credit.

However, your credit score is affected when you follow through with the application and apply for credit for a home loan.  Therefore, we encourage buyers to only apply for credit within their pre-approved budget.

6. What are the benefits of using a bond originator?

Ooba says that over 90% of their applicants who get pre-approved with them get a bond.

• You will know what you can afford
• Their services are completely free
• They help you answer any questions you may have
• Your offer on a home will be that much stronger

7. What does a bond originator need from me when applying for pre-qualification?

• Your latest payslip
• 3-months' bank statements
• Proof of identification
• There may be other relevant documentation (your bond originator will ask for it)

8. How do I get pre-qualified?

There are two options when it comes to applying for pre-qualification:

1. A do-it-yourself option
   You can use an online Bond Indicator tool, such as the one from Ooba Home Loans.
   This encompasses you inputting your income and expenses, and your credit score is checked. You will be issued with a pre-qualification certificate so you can begin house-hunting!
    
2. An in-depth process through your home loan expert
   This process includes an in-depth application form of your income, expenses, latest payslip, proof of ID, bank statements, and the like. Once complete, you will receive a Qualified Buyer's Certificate.

So, what's next?

>> Find your dream home <<
>> Apply for a home loan <<

For more information, chat to Bond Originator, Antonella Werth, from the Ooba Group:

0827713117 | antonellawerth@ooba-link.co.za

Written by: Hayley Kellerman