Question:
I was just wondering what is the procedure to apply for a home loan if I have a bad credit record?
Answer:
This week, our home loans expert from Bond Busters, Craig Chinnappen, answers our readers question.
If you have an impaired credit report, it does not necessarily mean that you will be declined financing when apply for a home loan.
You need to determine the degree of how impaired your credit report is.
I would suggest you visit My Trans-union and pull your credit report (you are able to access 1 free credit report a year, however, rather pay for one to get a more comprehensive report – the R80 report is adequate).
If there is legal action, judgements or defaults listed on your credit report, you will first need to remove this before the banks will lend to you.
The justice page on the government website is a good place to start.
If there are simply arrears on your accounts, but no legal action, you will need to catch up all the arrears on your accounts and maintain full and on time debt repayments for a period of at least three months before the banks will consider financing you.
Featured Question: Home loan with bad credit score
02 Dec 2014
Recent Articles
Featured How to identify an investment scam
Many people invest a lot of money for their future and that of their offspring. Unfortunately, some of them never reap the benefits because the investments were scams. Luckily, there are ways you can find out if an investment opportunity is too good to be true.
Financial conflict can lead to divorce – here’s how to prevent it
Talking about money is an intimate matter, and it may be uncomfortable for couples who’ve managed to avoid this discussion. However, it will become necessary at some point or other. Do you think you’re ready to talk to your partner about money?
This is how much you should spend on accommodation
As your salary changes over time, your expenses will change too. But what if you’re spending an exceedingly large percentage of your income on accommodation? Is it feasible or even recommended in our current stressful financial climate?
How to be “future greedy” with passive income
Setting up numerous streams of income is a safe way to protect yourself from the loss of your main stream of income. Better yet, setting up passive streams of income will ensure you always have money coming in, without costing you additional working hours. So, what is “passive income”, and how can you earn this?
Deals
Get 50% off your friend’s treatment at Mangwanani Spa
Price: from R250
When: Until 30 August
Where: KZN and JHB
Telkom LTE lockdown Deal
Price: R369 per month
When: Until 31 August 2020
Where: Nationwide
Save up to 20% on your car insurance with MiWay
Price: Available on request
When: Daily
Where: Nationwide
Our suppliers and companies we review
