Please note that you are using an outdated version of Internet Explorer which is not compatible with some elements of the site. We strongly urge you to update to a newer version for optimal browsing experience.

How long does the home loan approval process take?

20 Jun 2018

First-time home buyers and owners who are eager to sell often wait in anticipation to get feedback from the bank on the status of a home loan application.

“When applying for a home loan it is important to ensure that you have provided the bank with all the information required. A majority of delays often result from the bank having to contact customers to get accurate or missing information,” says Mabulu.

Stanley Mabulu, Channel Management Head at FNB Home Loans, says the amount of time it takes for a home loan application to be approved often depends on several factors, impacting both the bank and customers.

“Ideally, it should take a minimum of one week to get complete approval, however, due to application backlogs, delays or customers not meeting certain requirements, the process can be delayed for at least two to four weeks at most,” adds Mabulu.

He unpacks the time it normally takes a bank to grant a 100% home loan to a customer with a good credit profile, provided there are no interruptions:

Day one

The applicant provides the bank with their personal details, three months’ bank statements, property description, proof of identification, address and income, as well as a signed offer to purchase.

The bank confirms receipt of the information and validates if all the documents submitted are in order.

Day two

The bank will access the application taking into account the location, market value of the property, deposit, as well as the affordability and credit score of the customer.

Day three

The customer is contacted and informed of the bank’s decision to approve the application ‘in principle’. This condition is subject to the bank assessing the property to ensure it is in good condition, and that the sale price aligns to its market value.

Day four

The bank assigns an assessor to evaluate the property being purchased.

Day five

If the evaluation has been successful, the bank then prepares a formal contract or quote detailing the terms and conditions of the home loan, as well as the interest rate to be charged.

Mabulu says before applying for a home loan, it is essential that you first understand how a credit profile works and whether you are in good standing. You can also achieve this by requesting a pre-approval from your bank to determine how much you qualify for.

“When applying for a home loan it is important to ensure that you have provided the bank with all the information required. A majority of delays often result from the bank having to contact customers to get accurate or missing information,” adds Mabulu.

Consumers who require clarity about the home loan application process are encouraged to contact their bank for assistance.

Print Print
Top Articles
The days of Hermanus being just a small holiday town are 'no longer', and with good schools, an upbeat local economy and still well-priced property, it has a lot to offer...

Estates in Hoedspruit, Modimolle, Lydenburg and Bloemfontein offer serene African bushveld living, with stands selling from R200k and homes from R1.2m. Take a look...

South Africa's 'coolest mall' has been recognised as an innovative player in the retail space, hosting various events and delighting shoppers with over 300 stores...

Loading

Your browser is out of date!

It looks like you are using an outdated version of Internet Explorer.

If you are using Internet Explorer 8 or higher, please verify that your Internet Explorer compatibility view settings are not enabled.

For the best browsing experience, update to the latest Version of Internet Explorer or try out Google Chrome or Mozilla Firefox.


Please contact our Property24 Support Team for further assistance. Tel. +27 (0)861 111 724