How to apply for a bond

Doing it the lazy way this week - see below


PART OF THE MONEYWEB NETWORK
Friday, 15 April 2011


How to apply for a bond
Marius Crook*
06 April 2011

A simple step by step guide.

Applying for a bond is often one of the most important and daunting processes one can go through. In order to successfully secure a bond, it is essential for potential home buyers to ensure that they take the correct steps. Marius Crook, regional sales manager for ooba, South Africa's leading bond originator, supplies an easy to follow step by step guide to applying for a bond.
Step 1: Know your bond limitations
Ensure that you know what you can afford. Contact your bond originator consultant, complete the interview form and provide the necessary supporting documentation to receive the pre-approval certificate. With this in place you are now in a position to officially enter the property market.
Step 2: Find your dream home
A good tip for finding your ideal home is to narrow your search to a particular area, learn about its history, schools, security measures and other unique selling points. Once you have found your dream home ensure that it is within your price bracket.
Step 3: Sign offer to purchase
Once you have selected your home, put in an offer to purchase (sometimes called a sale agreement or deed of sale) with the real estate agent and seller and await acceptance from the seller. Once the seller accepts the offer the bond process can begin.
Step 4: Submit to banks
Contact your bond originator representative and provide a copy of the signed and accepted offer to purchase. The consultant will then proceed to submit your application to various banks.
Step 5: Bank assessment
Once the bond has reached the bank(s), the bank will then will assess the application and respond with a quotation or decline notice. One of the advantages of applying for a loan through a bond originator is that the purchaser only submits the information and documentation once. The consultant will then forward it to the bank(s) of the purchaser's choice.
Step 6: Accept or decline
The purchaser will then have five days in which to accept or decline the bank's quotation.
Step 7: Registration
Once the bond offer has been accepted by the purchaser, the bank will instruct attorneys to proceed with the registration of the bond. At the same time, the estate agent or seller will instruct the transferring attorney to proceed with the transfer of the property from the sellers name to the purchasers name. The transfer of the property and the registration of the bond will take place simultaneously.
Step 8: Deeds office
The documents will then need to be send to the deeds officer in order for the transfer to take place.
Step 9: Enjoy your new home!
*Marius Crook is the regional sales manager for ooba