Your Home Loan Readiness Guide – Tips for Buyers!

Are you considering purchasing a home but uncertain about your financial readiness? With South Africa's property market poised for growth in 2025, now is an opportune time to prepare. The anticipated reduction in interest rates and economic recovery are expected to boost market activity.

Before applying for a home loan, it's essential to ensure your finances are in top shape.  These key Home Loan Readiness Tips from ProMortgage will help guide you through the property buying process.

✔ Keep debt in check – Reducing store accounts, personal loans, and overdrafts can improve your loan eligibility.

✔ Pay bills on time – Timely payments help maintain a healthy credit score.

✔ Monitor credit checks – Frequent hard credit inquiries can impact your credit rating.

✔ Stable employment matters – Lenders prefer applicants with a steady job history.

✔ Manage your salary wisely – Ensuring your salary is deposited into the same account monthly builds credit history.

✔ Avoid overdrafts – A negative cash flow may indicate unpreparedness for a home loan.

✔ Think twice about surety – Standing as a guarantor can affect your loan qualification.

✔ Save for a deposit – A 5-10% deposit not only secures your home but also reduces financial pressure.

✔ Plan for additional costs – Be prepared for transfer duties, legal fees, and registration costs.

✔ Pick the right location – Research areas, property values, and future growth potential.

✔ Shop smart – Take your time to find the best property within your budget.

With these steps, you'll be well-positioned to secure financing and find your dream home in a market that's expected to reward informed buyers. For expert guidance on the home loan process, visit ProMortgage today!