Buyer Articles

Author:  JAWITZ Properties
March 2022

Document checklist for property purchasers

If you’ve decided to become a homeowner – congratulations! Once you’ve found a property that ticks all your boxes and signed the offer-to-purchase agreement, the process of procuring a home loan and having the property transferred into your name begins. In order to ensure that this process runs as smoothly as possible, there’s some paperwork that you’ll need to have in order. Jawitz Properties provides a breakdown of the documentation that you’ll need.

Proof of your financial means

Before any bank can agree to give you a loan, they need to be assured that you’ll be able to meet your monthly repayments. If you’re applying for a home loan, this means providing proof of your income with your latest salary slip. If your salary includes a commission or overtime component, it can be beneficial to provide your last three salary slips. If you are applying for a home loan with a partner, both of you will need to provide your proof of income.

Over and above your proof of income, you’ll need to provide three to six months’ personal bank statements. This allows the bank to see proof of funds coming into your account consistently. If you are applying for a home loan amount higher than R1 500 000, you may also be asked to provide a statement of your personal assets and liabilities.

General documents

You’ll also need a copy of your South African ID card and, if applicable, your marriage certificate and antenuptial contract. Once you’ve signed on the dotted line, you’ll also need a copy of the purchase agreement to secure your home loan. If you’ve been paying a home loan on a property that you currently own, you’ll need copies of your bond statements from the past three months. You may also be asked to show your latest rates, levy and utility accounts if applicable.

Documents for self-employed applicants

If you’re self-employed, the process of becoming a homeowner may be more cumbersome – but it’s not impossible. With the right paperwork in place, a bond originator like ooba can help you secure a great home loan deal. Documentation that you’ll require includes the following:

  • Financial statements for the past two years. If these are more than six months old, you’ll need to include signed management accounts.
  • A letter from your auditor detailing your income.
  • A personal statement of your income and expenses.
  • Your latest IT34 from SARS.
  • Personal and business bank statements for the past three months.

How to improve your chances of being granted the funds to buy your dream home

Over and above having the paperwork in order, there are various things you can do to make the banks see you in a favourable light when making a decision on your home loan application. While 100% home loans are currently being granted to some applicants, saving up at least 10% of the funds you need is a great way to show the bank that you’re financially responsible.

Certain banks may allow you to have a guarantor. Having someone who is more financially secure co-sign with you provides the bank with reassurance that you’ll be able to meet your monthly repayments. The person signing surety will need to have a direct link to the property. One of the most common scenarios is a parent helping a child take their first step on the property ladder.

One of the best ways to get a home loan offer that makes sense for you is to use a bond originator. This means that your application gets submitted to all of South Africa’s big banks, and your bond originator can leverage the relationships they have built up with the various financial service providers to get you the best possible deal.

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