In principle bank loan approval for property purchase


Because they're putting their money to you. So the purchase of the property needs to be according to the value of the property. This also sometimes helps when you are getting scammed by the seller and the seller has over charge you on the property purchase. So I always say if the banks says, Listen, this is a little bit deep, rather listen to the bank. But you can get your own evaluation, and if you feel that's the fair price then it's okay. But unfortunately the bank will not fund that property or they might fund 80% of the property. 

Now you got approval in principle, you can also use that to negotiating with another bank. For instance Standard bank gives you 10% you can take that and go to your own bank and say if another bank is giving me ten percent sure you too can give me 9%. Push as much as you can and remember lower interest rate means that you pay lower interest charge on the overall lifetime of the loan. So is also important for you to make sure to negotiate as possible. One little thing that you must also remember is what is called the initiation fee. 

Which initiate the bond, make sure that you actually pay that off at once. Do not finance that money, trust me R4 000.00 over 20 years is a lot of money and pay the initiation feet as quickly as possible. So what happened is that your bond will go through, it will get approved, and then you have got to pay the deposit, you would pay the deposit to the sellers. The bank will hire its own bond registration attorneys that you will also have to pay for their service as already mentioned, and this all gets registered at the title deeds office. 

As this is happening concurrently, this transfer lawyers will be communicating with you in terms of municipal accounts that needs to be changed into your name, things like, any clearance certificates that needs to be sent. All those things will be sent and they will communication with you and this is not once you have agreed taking the offer from the bank. Once you have done that, this thing gets registered in the title deeds office and you been eventually get lodged in the title. These is one of the best emails that you will get because you now get your property. But it also means now loan or your bond is in fully bank will be expecting a first payment, probably at the end of that month. So then you move into your house, and it is amazing. 

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