How long does a home loan approval process take?

It’s a buyers’ market for house salesFirst 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.

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 statement, property description, proof of identification, address and income, as well as a signed offer to purchase.The bank confirms receipt of the information and validate 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 accessor 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.

FNB customers can also use nav>> Home, an innovative digital tool designed to assist prospective home owners to find their dream home, get pre-approved in minutes and acquire knowledge about the home buying and registration process.

 



Latest


28 Sep 2020
An agile workforce is key to navigating the pandemic

By: Donné Nieman, Commercial Manager at Workforce Staffing Applications for the UIF/Temporary Employment Services (TES) grant to alleviate employee layoffs…

An agile workforce is key to navigating the pandemic

By: Donné Nieman, Commercial Manager at Workforce Staffing Applications for the UIF/Temporary Employment Services (TES) grant to alleviate employee layoffs has closed. But this was always going to be a temporary measure. The long-term implications of the COVID-19 pandemic on our economy will continue to resonate and be a permanent…

28 Sep 2020
The real reason you should be investing offshore

By: Chris Potgieter, Managing Director of Old Mutual Wealth Private Client Securities Discounting for a moment the state of the…

The real reason you should be investing offshore

By: Chris Potgieter, Managing Director of Old Mutual Wealth Private Client Securities Discounting for a moment the state of the local economy and one’s particular socio-political view, the key motivation for any investor to invest offshore should be to have appropriately diversified wealth in pursuit of real capital growth at…

21 Sep 2020
Women are lagging in retirement savings and are debilitated by stress

In a recent study of their client base, Momentum Corporate revealed that almost half (41%) of the employees on the…

Women are lagging in retirement savings and are debilitated by stress

In a recent study of their client base, Momentum Corporate revealed that almost half (41%) of the employees on the FundsAtWork Umbrella Funds are women. With an almost 50/50 gender split across the client base, a one-size-fits-all approach to advice on employee benefits simply won’t cut it. This is according…

15 Sep 2020
Despite COVID-19, SA investors expect higher future returns

Even as COVID-19 halted the longest economic expansion on record and plunged the world into deep recession, South African investors…

Despite COVID-19, SA investors expect higher future returns

Even as COVID-19 halted the longest economic expansion on record and plunged the world into deep recession, South African investors expect to make an average annual total return of 12.67% – almost 2% higher than the global average predicted returns of 10.9%. This was revealed in the recently released Schroders’…


Top stories


10 Apr 2020
When the going gets tough, farmers are on familiar territory

South African farmers are old hands at adapting to uncertain and daunting circumstances, and our local agricultural industry has proved…

When the going gets tough, farmers are on familiar territory

South African farmers are old hands at adapting to uncertain and daunting circumstances, and our local agricultural industry has proved to be most enterprising in acclimatising to challenges as they arise.

10 Sep 2020
How too much choice is draining your brain

By: Paul Nixon, head of technical marketing and behavioural finance at Momentum Investments From the words of Francis Scott Key…

How too much choice is draining your brain

By: Paul Nixon, head of technical marketing and behavioural finance at Momentum Investments From the words of Francis Scott Key that dubbed America “The land of the free”, which stuck, to the unforgettable Mel Gibson monologue where an army of painted Scots were willing to trade their lives for the…

13 Apr 2020
Investors should keep a reasonable investment allocation outside of SA

MoneyMarketing asked Roland Gräbe, the head of Tailored Fund Portfolios at Old Mutual Wealth, about offshore investments in the COVID-19…

Investors should keep a reasonable investment allocation outside of SA

MoneyMarketing asked Roland Gräbe, the head of Tailored Fund Portfolios at Old Mutual Wealth, about offshore investments in the COVID-19 environment and what form a global market recovery will take.

13 Apr 2020
SA’s Proposed Covid-19 Disaster Management Tax Relief

The National Treasury recently issued the draft Disaster Management Tax Relief Bill (Bill) for public comment by 15 April. The…

SA’s Proposed Covid-19 Disaster Management Tax Relief

The National Treasury recently issued the draft Disaster Management Tax Relief Bill (Bill) for public comment by 15 April. The draft Bill, together with its explanatory memorandum, provides clarity with regards the tax relief measures President Cyril Ramaphosa announced on 23 March.


Visit the official COVID-19 government website to stay informed: sacoronavirus.co.za