SHOWING ARTICLE 1 OF 804

Buyer Tips: Supporting Documentation for your Home Loan

Category Internal

Thinking about buying a home? Get a head start and have all your source documentation ready 

Completing an application is just one of the many things you need to do in order to obtain home loan financing.

Whether you've already found a home or are just looking to get pre-approved, you will need to provide a variety of home loan documentation to help your lender.

The information required will vary depending on the lender you choose, your loan option, and your personal financial situation.

The following is a list of documents generally required when applying for a new home loan. For a fast and easy loan process - have these items available when you are ready to complete your application.

All Applications
 

  • A copy of your ID document/s
  • A copy of the offer to purchase containing seller and purchaser's details (not necessary for a pre-approval)
  • Proof of income 
  • You will be required to produce a salary slip (not older than 2 months) / or a letter from your employer with a breakdown of your salary and deductions.
  • If you are self-employed then you will be required to produce a letter from an accounting officer confirming your income, or a statement of assets and liabilities

Companies / Close Corporations

Copy of financial statements You may be required to produce a full set of financials eg. balance sheet, income statements etc, which must be signed by the auditor:

  • Details of all the directors / members
  • Founding statement of the close corporation
  • Close corporation certificate
  • Company certificate
  • Memorandum and Articles of Association
  • A resolution by the directors / members of companies / close corporations advising who may sign the home loan application / pre-approval for the purchase of the property

Trusts
 

  • A copy of the Trust Deed (each page has to be certified and initialed)
  • A letter of authority authorised by the Master clearly indicated thereon
  • Resolution advising who may sign the home loan applications / pre-approval
  • A resolution by trustees advising who may sign the documents and purchase properties
  • A form must be completed for related parties  - sureties, named beneficiaries, trustees and the founder

FICA Verification of Address documentation

Any FICA document must show your residential address and contain full names and surname or initial and surname, the name on the proof documents must be the same as that appearing on the ID document you use.

Any bank statements, municipal documents (such as rates/water/electric bills), utilities bills (Telkom etc), medical aid must be less than 3 months old.

If you are using the likes of insurance, TV license, retail statements, lease agreements etc normally need to be less than 1 year old.

Once you've begun the application process, your home loan consultant will advise you of all the home loan documentation required for your situation.

But keep in mind - the more information you have ready before you apply, the faster your loan will be approved.

Author: Barry Davies

Submitted 11 Sep 16 / Views 2644