Buying a home is probably the most important (and biggest!) purchases many individuals will make in their lifetimes! It is therefore best if you do a little bit of research beforehand so that you are confident that you’ll meet all the demands and requirements essential to qualify for a bank home finance loan.

Let’s take a look at a few the documents that you’d have to get ready before you apply for a home loan. This is a standard set of documents and won’t vary much amongst numerous lenders.

The first item on the list is a duplicate of your ID document. This usually needs to be certified to prove that is a copy of a genuine ID. In some instances your driving licence might be enough, but most companies would only accept a copy of your actual identity document.

Next you would require an offer to purchase. This isn’t a contract yet, but purely an offer to purchase the home involved from the owner. An offer to buy would generally incorporate a review of the property (the address etc) as well as the amount that you intent on paying for this property.

Because a bank home loan is such a big loan, you need to show that you can afford the purchase. Because of this the banks or finance companies would need to see your proof of income. This will be in the form of a salary slip if you are employed and auditors’ letters or statements of your liabilities and assets if you are self-employed. A Close Corporation or Company certificate would generally also be necessary if you are your own boss.

Along with the above proof of income you’d also need to supply the banks with 3 months personal bank statements (if you’re employed) and 6 months personal and business statements if you are self employed.

If a company or close corporation wishes to obtain a bank home loan, they would need all the above documents as well as a couple of extra paperwork. This will include a copy of the company’s latest financial statements, details of all the company directors and members of the company, the company’s founding statement and a resolution by all directors or members indicating who will be responsible for signing the application form and all relevant paperwork.

If a trust is applying for the loan, the documents must be accompanied by a copy of the trust deed and once again a resolution advising who will be responsible for signing all the related forms.

Attempt to get all your paperwork in position before you approach a bank or other lender for a mortgage loan. As this is quite an extensive application, it would be better to have all the documentation ready beforehand, in order to avoid delays with the application. No company will start processing your application without all the documentation.

Happy house hunting! May your home loan application process be quick and painless!

For more information about a bank home loan visit the website http://www.isureins.co.za