Negotiate offers presented by the banks


After you have decided you want to buy, you would go ahead and fill in the application form for you to get a home loan facility. Once you have done that, some people, some of the real estate agents, will offer their bond originated services. And they will do all that on your behalf and in some instances, you could do yourself, now as I mentioned before that there's another place called Mortgage Market. You put in one application and goes to five different banks in South Africa and they will come back to you with an get offer. 

Once you get an offer remember, you can negotiate, please negotiate. It is important to negotiate, don't take the offer as is especially if you are comfortable with that offer. Now, remember also going back suspense clause, you are legally allowed to make counter offer to the seller  and say I don't want to go to all the banks in my counter offer I only want my offer to come from the standard bank at 10% or from FNB bank at 5%. So whatever it is that is the counter offer that you're offering to the seller and they need to either accept it or need to decline it. 

Now, when you go to the banks and they do give you the offer I always say is they they do, give you the offer in principal or approval in principle, and that is now dependent on other checks that they still need to do and other checks they need to do if they're give you approval in principle is the valuation of the house, they will go and evaluate the house at price in which is being sold to you. The banks will tell you sometimes that the price being over charged. Remember, the banks also have a big interest in the property that you purchasing. 

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