Purchasing a home is one of the most crucial choices anyone is ever going to have to make. It can be an incredibly difficult decision, but it’s also a fantastic, exciting experience. The beginning of the home-buying process typically starts by visiting the bank. You will have to apply for a mortgage loan and will have to go the home loans division of your bank. In this case, I would need to go to the FNB home loans department to fetch my application forms. They’d usually provide you with a form that contains information regarding your application as well. Different financial institutions have different criteria that one needs to match before being approved for a financial loan. In case you are unable to visit the bank to get the information sheets and application forms, you can research the different requirements and fine print on the web before wasting your time by waiting in a queue. This way, you will be well prepared when you visit the bank and can get everything over and done with. You may also go to an independent bond consultant to explain the differences and requirements to you: this will save you time and effort and you know that you’ll receive the right info as the web can sometimes be deceiving.

FNB home loans department advised me of a couple of things I need to know and requirements I have to match before I can apply for a home loan. I found out that any individual planning to apply for a mortgage loan needs to be at least 21 years of age, for apparent reasons. The person should also have been permanently employed for no less than six months. Remember to be completely truthful in your application, as your statements and information is going to be followed up on and being unfaithful can lead to not being successful in your application. If you are self employed, you’d need to have been working for a minimum of two years. You would also need to deliver evidence of this.

The FNB home loans department also advised me that a good credit record goes a long way. If you’ve ever been blacklisted, regardless of whether it’s something small, it will definitely count against you. Having credit cards and paying them on time is a great way of showing your credit trustworthiness. Just keep in mind that too many credit cards may also count against you. Two or even three credit cards are okay, but more than that may become hard to maintain and could result in the application being unsuccessful.

You month to month income also plays a big role in your application being approved. You can’t make an application for something you can not pay for. You should also keep in mind that the home loan isn’t the only expense a property has. Things such as water and power bills; rates and taxes; refuse; garden service and levies need to be added as a monthly expense.

Overall, the process of purchasing a home is not as daunting as some may think. The key to dealing with the process fuss-free is being well prepared. It’s an extremely important decision to make, but remember to have fun.

For more information on FNB home loans, go to http://www.isureins.co.za