Naturally, the higher the better, and a high credit score rating is one of the most valuable personal finance assets you can have. Through various calculations based on your transactional records, the credit bureau will provide your bank with a three-digit number ranging between 0 and 999. Your credit score indicates to your bank whether your past debt repayment behaviour will make you a good risk or not. Step 2 – Assess your credit recordĪs far as your bank is concerned, your credit score is a big number above your head that tells them how much of a risk you are.
Another way to gain prequalification is to get yourself verified by an expert. This will be an invaluable guideline during your house hunt, and furthermore, the Bond Indicator will issue you with an ooba Bond Indicator Certificate that you can submit when applying for a home loan (more on that later). This will provide you with your credit score, a summary of your affordability, and a realistic indication of your price ceiling. “Rough estimates of what you think you can afford just aren’t good enough in these days of stricter lending policies from financial institutions,” says Rhys Dyer, CEO of ooba home loans, South Africa’s leading home loan comparison service.Ī good starting point would be to use a bond affordability tool, such as ooba’s Bond Indicator, which is a free, online tool. If you’re unsure where to begin, here’s a handy step-by-step guide to buying a house in South Africa, so you can approach one of the most important decisions you’ll make with clarity and focus: Step 1 – Determine what you can affordīefore you start your house search, you should have a very clear idea of what financing is available to you for the transaction. The path is well signposted, and there are expert advisors who can help you along the way.
But while it may seem daunting at first, it’s not like you’ll be wandering uncharted territory.
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