Bond Originator Tricks

Recently it has been said than more and more bond originators are charging clients with extra costs, which is illegal. This shocked me as I realized then, that this is something that happens often in South Africa.

Anthony Smook, managing director of a mortgage loans said that, in the recent weeks he had come across three cases where origination consultants are invoicing clients for fees to obtain a bond for them.

Legally, the only way when a bond originator is able to charge their clients for extra fees, is when the bank is not paying any commission to the bond originator. The Bond Originator then has to put this into writing before he/she goes through with the application. If he does not then the applicant should demand to know why not.

So whenever you are applying for a home loan, be sure to ask the necessary questions to your bond originator so you don’t get ripped off like a lot of the other people out there.

If you need more questions on the subject you can contact SecuBond at 086 111 5024 ext 101

All you need to know about home equity loans

Home equity loans are wonderful if you have enough equity built up in your home that you can get a loan against the equity. Many people do not realize that a home equity loan is available to many homeowners. However, some take advantage of them and get one whenever they can qualify. It just really all depends on your home and the equity in it as to whether or not you may or may not qualify for one. There are many places that offer loans against the equity in your home, and you may or not be aware of them.

Reasons for a Home Equity Loan
There are so many reasons that you might want to take out a home equity loan. Maybe you need to do some home improvements around the house. On the other hand, perhaps you are ready to take that dream vacation that you have worked so hard for. Another reason that many take out a loan against the equity in their home is for debt consolidation. You will find that this is the most popular reason for this type of loan. Simply to be debt free. Taking out a loan and paying off your debt, so that you only have one single payment that is lower to pay every month is a great reason in itself.

How much will my loan be?
If you are like everyone else, chances are that you are wondering just how much of a loan you can get against the equity of your home. Well, that really all depends on the equity that you have built up in your home and how much of a loan you need. Maybe you do not need the full amount that you are offered, or perhaps you need a little more. Like stated earlier, this depends on the amount of equity as to how large or small the loan will be.

Where can I get a loan against the equity of my home?
Most banks or mortgage companies that offer second mortgages are known for home equity loans. Many of them will be willing to look at your information to in return give you the most for your equity that you have built up in your home.

Something to Keep in Mind
If you just bought your home, and you have not made many payments on it yet, then chances are you will not qualify for a loan against the equity in your home. The reason for this is you have to make payments for a while and give the equity a chance to build up. You cannot go and get a loan against the equity in the same day or month you start paying on your home. Simply because there is, no equity built up at that time. You should at least pay on your home for a few years before you try to qualify for this type of loan.

As you can see, the home equity loan is one that can help you out if you were to get in a bind. You can get one to consolidate your debt, or to just help financially.

The author is the owner of a mortgage site in South Africa. If you like to read more on home equity and debt consolidation you can visit securebonds.co.za

Article Source: http://EzineArticles.com/?expert=Dawie_Bester

How To Spot Mortgage Fraud?

A small white lie in real estate loan application constitutes mortgage fraud, and it’s certainly a big concern and with increasing fraudulent document registration by lenders, brokers or borrowers it becomes essential for both parties to escape themselves from going to be the next victim of mortgage fraud. False assess of the value of the property to inflate the lending amount or any kind of misrepresentations regarding income or employments are some common ones.

Taking a hard look of the incomplete mortgage loan, any penalty provisions, hidden cost, need of credit insurance, direct contact with lenders for deal verification or transaction are certain things that needs to be carefully considered prior to the execution of the mortgage deal.

What documents are required for a bond?

Now, you want to get a home loan but you don’t know which documents to send to your lender or bond originator. This is also important as you want to get the process started as soon as possible and to do that, you will have to send the correct documents. Here is what your lender (bond originator) will need from you:

Time to switch to 30-year loans?

Cash-strapped homeowners should consider extending their mortgage repayment period from the conventional 20 to 30 years, a move that could translate into a R620/month saving on an R1m loan.

Banks and mortgage originators have in recent weeks started to encourage homeowners to take this route before they start falling into arrears and potentially lose their homes.

What does a Bond Originator do?

By now everyone has come across the term Bond Originator, but there is still some uncertainty to what a bond originator actually does. To put in a nutshell; they do all the legwork for home loan applicants in seek of a home loan.

Bond Originators has become very popular in South African over the past few years. The reason for this is very simple. When you are seeking for a mortgage, you would normally go to the bank, stand in a queue and fill out a bunch of paperwork. Now, when using a bond originator, you don’t have to do all that any more.

The originator will go to the bank for you, make sure all the right documents are send and they will seek the lowest interest rate at all the major banks in South Africa. They also pressurize the banks to speed up the process in getting you a mortgage as soon as possible.

Because they get paid a fee by the banks, their service is absolutely free of charge and they will provide you with professional service. You can benefit a lot when using a Bond Originator, like saving lots of money, not standing in queues anymore, saving frustration and getting a home loan approved much sooner.

It simply makes sense these days, especially with the implementation of the NCA to use a bond originator to handle your home loan.