Understanding Bank Policies
Today several policies are in place with the banks and hopefully this will assist our clients.
When applying for an ABSA loan, the buyer must ensure that the sale agreement has witness signatures on it. If the sale agreement does not have these, ABSA will not process the application.
If you are married in Community of Property, both parties need to sign the sale agreement as well as the bond application and bond registration documents. Even though it is not a legal requirement, if one of the parties buys in a Trust, the bank can insist on it. ABSA and FNB have informed the attorneys that their policy insists on both parties signing, even if they are in the process of divorce.
Some banks are also not willing to take rental income into account when you apply for a loan.
So, if you need to boost your income to secure a loan on another property, you cannot rely on the additional income that you receive from a rental investment property, that you may have. Some banks are more lenient and will take a certain percentage of the income as part of your gross income.
We have access to experts that can guide you through this process so that you have a successful outcome when applying for a loan.
There are very few months left to market your property this year, please contact us to assist you with the process.
Author: Gaye Cawood