How To obtain A 100% Home Loan
As the credit crunch emerged and character prices started plummeting, one of the first products to disappear from the edges’ offerings were 100% home loans.
But, the market has begun to turn around and 100% home loans are again obtainable. edges were initially very careful in reintroducing these no place bonds, but have since looked to openly promote and advertise their availability.
The major retails edges including: ABSA, FNB, Standard Bank and Nedbank are all offering 100% bonds – within certain limits.
And, despite this only 20 percent of all applicants are qualifying for 100 percent bonds. The main reason is simply ignorance. Recent statistics show that over 50% of all credit active clients are considered highly indebted or have a poor credit history.
And this is the first step to securing a complete 100% home loan.
When is comes to applying for finance, it’s all about reducing your risk profile. edges want to know that their investment in you and your character is safe, and comparatively low.
One of the first things you will need to do, is get a copy of your personal credit report and ensure that there are no negative remarks or scores against your name.
You will need to provide paid up statements for any past bad listings on your report.
After reviewing your credit history, the second most important detail about your finance application is your current employment position.
complete-time, obtain, long-term employment is favored over clients who are self-employed. In fact self-employed clients confront a toughest challenge to obtain character finance by the major edges.
The kind of character and price of the character will also help to persuade the bank to grant you the complete loan amount you are requesting. Bank repossessed houses below 500,000 are considerably easier to obtain complete loans for, while similarities priced above 2 million are usually limited to 90 percent loans.
In fact bank repossessed houses are one of the major driving forces behind the reintroduction of 100 percent bonds. Lenders were sitting are large amounts of repo similarities and needed a way to encourage possible buyers to considered purchasing these discounted similarities from the edges.
edges are also far less inclined to repossess a home of clients who are struggling to keep up with their monthly repayments. They, instead, would place that character on their ‘assisted buyer’ or ‘distressed sales’ list in any effort to sell the character before it goes by the complete expensive legal repossession course of action.
similarities bought from these distressed sales lists are also very likely to fall within the 100% lending criteria.