Understanding the Home Loan Process: Insights from Gold Table Talk

In the first episode of Gold Table Talk, experts Eva August from Century 21 South Africa and Justin Easthorpe from Ooba Home Loans offer invaluable insights into the home loan application process, particularly for first-time buyers.

Easthorpe highlights the importance of timely action, noting, "The validity period is 3 months for a pre-qualification." This pre-qualification simplifies the loan process and is crucial for prospective buyers.

The episode delves into the differences between prime rates and interest rates, emphasizing their impact on loan affordability. Easthorpe advises applicants to prepare essential documents such as application forms, bank statements, and income slips for a home loan application.

Additionally, Easthorpe explains that Ooba assists in "comparing loans between banks to get you the best possible rate, either over 10, 20, or 30 years," helping buyers make informed decisions. Understanding the influence of credit scores on loan approval is also crucial, as a good score can significantly improve one's chances.

A vital aspect discussed is the topic of transfer duty. Easthorpe clarifies, "Home buyers purchasing property under 1.1 million will not necessarily pay transfer duty, but there are transfer fees attached to that price, not duty." This distinction is essential for buyers to understand the various costs involved in property transactions.

This episode is packed with essential information for first-time buyers, covering steps like understanding loan terminology, gathering necessary documents, and the importance of pre-approval. The hosts emphasize that being well-prepared can make the home-buying journey smoother and less stressful.

For more detailed insights, watch the full episode here.